email sent to FOMB, PREPA, PREB and Congress Dear Ms. Jaresko ..
I am writing in response to your attached March 17, 2021 letter.
In your letter you confirm that our allegations of fraud on the part of PREPA in connection with the Montalva contract and the accusation that the FOMB
(or certain members) particpated in the accused fraud is with merit, by virtue of you not denying any of the substantive matters we have brought forward by countless emails
and memoranda since Q4 2020 by us to the FOMB. Your response that our accusation is baseless without addressing any of the key issues made by us is simply not a defence under law and in practise.
You are entitled to your opinion but not entitled to make up facts.
I will now respond with undisputed facts to each of your paragraphs contained within your letter in order of paragraphs.
Para #2
None of the issues requested by "The Committee" were addressed in your response. You simply skipped over the key issues that were requested to be answered by the Hon. Raul Grijalva.
You dismissed any of the substantive issues and failed to provide fact based replies.
Regarding the complicit acts to prejudice and undermine our project, by misstating prices or other terms, the evidence is overwhelmingly in our favour. PBJL or its parent public company Greenbriar Capital Corp sent the FOMB and PREPA countless documented and factual memoranda since Q4 2020 pointing out that our PPOA price was 8.84 and the transmission cost was $3.8 Million, not $15.74 Million. In fact, PREPA acknowledged this price in a Nov. 23 email by saying thank you for the reduction notice to 8.95 and (then fractionally weeks later to 8.84 before year end) Even at 8.95 the savings on raw energy alone is $75 Million and this was acknowleged by PREPA.
The lower transmission costs was stated by PREB, S&L and Nu-Energy partners the PREPA consultant. These were all material facts you were notified about even before the Final Report issued by Nu-Energy Partners dated December 31st, 2020. Yet, PREPA failed to tell their consultant Nu-Energy the correct numbers, but allowed Xzerta to lower their end price, and the FOMB was aware of our lower prices, (which the lower transmission price was a fact in the earlier PREB July report). There was no statutory deadline ever mentioned by PREB, PREPA and the FOMB to lower the PPOA price. We complied with the FOMB, and notified all parties. Even the PREB stated our project would save the ratepayers $250 Million before we lowered our price to 8.84 which is another $75 Million in savings. Basically the FOMB and the PREPA has allowed another competitor to lower its price and to misstate our numbers in the final FOMB approval document for voting on Feb. 26, 2021. You were well aware our price was 8.84 as you stated that yourself in your Jan. 2 letter, long before the Feb. 26 vote.
The storage and large batteries provides another $100 Million in savings for a total savings of over $425 Million. This alone is as large a savings as the entire 16 shovel ready projects being out of pricing compliance with your Order. In essence Montava has subsidized the entire 16 other projects. These are facts in electrical engineering and mathematics, not innuendo or baseless replies from you. You cannot dispute these factual numbers with your opinion.
Montalva saves the ratepayer $425 Million. PREPA did not provide this information to their consultant, but we provided this to you, the FOMB and PREPA. All transmissions were resolved with our PREPA approval on May 28, 2020.
Para #3 Page 1 and Para #1 Page 2.
Montalva lowered its price to reflect the FOMB concerns of Aug. 17, 2020. In fact, as stated above, the Montalva project saves the ratepayers $425 Million and almost subsidizes the entire 16 shovel ready projects.
On a related note, both the Committee and APER disputes your $460 Million in additional energy costs. We dispute this as well as invalid calculations, delays, lack of interconnection points, high insurance and hurricane history, and litigation will exceed any difference of additional costs you mention.
Our point is the Montalva project covers $425 Million in ratepayer reduction to this purported $460 Million extra costs. (The FOMB refused to show APER how they derived this $460 Million number with facts)
Para #2 Page 2.
This determination by the FOMB of allowing 150MW had no fundemental basis in electrical engineering, mathematics, economics or law. This was an arbitrary decision by the FOMB and clearly the only people suffering the greatest harm as a result of that decision are the ratepayers and citizens of Puerto Rico. Many more years of no clean renewables for the citizens. APER asked for the mathematics, economics and engineering principals in how you derived the underlying raw data to support the 150MW and the $460 Million and you came out refusing to provide this information. It is because you have no underlying data other than quoting unrelated
projects in Florida without any of the substantive issues we face in Puerto Rico, not at least of which is immense regulatory uncertainty and lack of oversight of the oversight board. We face unbearable insurance costs because of two Class V hurricanes, MTR's, unstable grid, building to Cat V standards and many issues that PREPA's own consultant said anything under 10.0 was a bargain.
Para #3 Page 2
That is an extremely flawed decision by the FOMB based on the Doctrine of Equity and is An Abuse of Discretion.
You exercised full discetion in asking for only 150MW, then offered no discretion by the FOMB to PREPA to pick and choose their 150MW. This opens and exposes the FOMB to litigation and damages by the 593MW remaining.
This is an abuse of discretion. In one moment you exercise what you believe is full discretion to stop PREPA on the 593MW, but then punt on discretion on the 150MW.
Para #4 Page 2
Montalva was not on the list but the FOMB and PREPA were fully aware at all times, that the economic facts and prices underlying our project to the FOMB were both intentionally incorrect and misstated.
Regardless, the FOMB approved the "friendly" projects.
Para #5 Page 2
PREPA fully denies that the FOMB was unaware of the pricing for the 593MW.
You have explicitedly said verbatim in your in your Jan. 2 letter where you emphatically state:
"Given Puerto Rico’s recent history of alleged corruption and mismanagement in public affairs, ensuring the procurement of new renewable generation resources is transparent and free of any appearance of irregularity or undue influence is paramount for ensuring the best possible outcome for Puerto Rico’s residents and restoring faith in Puerto Rico’s energy market."
You further state in the same letter that: PREPA mislead the developers" about the FOMB being unaware of pricing.
Given your above comments, why would you then trust PREPA with the 150MW and refuse to question the underlying facts from all the developers especially after our countless memoranda to
you that the prices and numbers in the 150MW ranking are incorrect. In the above highlighted verbatim comments from yourself, you call Puerto Rico corrupt and the PREPA misleading. Now you have a change of opinion within 60 days?
Perhaps the FOMB needs oversight and its integrity is certainly in question.
Para #6 Page 2
PBJL, its parent company Greenbriar, and our legal counsel have spoken extensively with and continue to speak and supply undisputable evidence to a Federal Law Enforcement Agency.
The law enforcement agency at question has asked us to remain silent as to the exact agency. At this point we will keep the agency confidential.
But the undisputed facts remain documented as black and white evidence and on paper. This is the summary.
a) The winner of the 150MW selection by the FOMB on Feb. 26, 2021 did on Dec. 2, 2019 asked PBJL and its legal counsel to come to San Juan and said it was the only person that walks the halls of PREPA and that we should sign whatever PPOA, that PREPA gives us under his direction from his friends at PREPA, and that PREPA will change the agreement in our favour at a later date. The bribe was followed up by a WhatsApp text.
We notified PREPA on Dec. 2, 2019. No follow up by PREPA.
b) The winner of the 150MW selection as approved by the FOMB on Feb. 26, sent to us on May 31st, 2019 (and forwarded to our legal counse) by WhatsApp text, a true copy of the PREPA PPOA for the 16 shovel ready projects.
We did not review the PPOA.
PBJL received its first copy of the PPOA from PREPA on March 2, 2020. That means the winner of the 150MW had in their possession, and that of their friends, a copy of the PPOA a full nine (9) MONTHS before we received our copy. This is on paper and can easily be traced by the federal law enforcement agency back to the sender(s) from PREPA.
This is absolutely stunning that the projects you had approved on Feb. 26, 2021 had in their possession the PPOA nine full months before us.
This is corruption, cronyism, bribery, inside dealings, and pay to play of the highest order. Our true project cost and benefits were completely ignored because we failed to pay bribes to insiders.
This is factual and there exists no dispute.
We hereby respectfully request the FOMB to approve our 10 year-old revised PREB and PREPA approved contract, containing within our "FOMB aligned Certified Fiscal Plan revised pricing".
Our contract provides the savings of $425 Million as stated by our price reduction, transmission savings and includes the $250 Million savings as stated by PREB.
Best regards,
Jeff Ciachurski
PBJL Energy Corporation
Greenbriar Capital Corp
1-949-903-5906