Whitefish Energy Scandal

In the aftermath of Hurricane María, the Puerto Rico Electric Power Authority (PREPA) awarded a $300 million no-bid contract to Whitefish Energy Holdings, a tiny firm based in Whitefish, Montana — the hometown of then-Interior Secretary Ryan Zinke.

At the time the contract was signed, Whitefish Energy had only two full-time employees. The company had no experience with disaster recovery or large-scale electrical grid repair. The contract included provisions forbidding audits or reviews by FEMA, the Puerto Rico government, or any other entity.

When the contract terms became public, there was widespread outrage:
- Workers were being billed at $319 per hour for linemen and $462 per hour for supervisors
- Helicopter services were billed at $4,700 per hour
- The contract prohibited auditing or investigation of costs
- The connection to Secretary Zinke raised conflict-of-interest concerns

The contract was canceled on October 29, 2017, after FEMA, Congress, and the FBI began investigations. However, Whitefish had already been paid approximately $128 million for work of questionable value.

The Whitefish scandal became a symbol of how disaster capitalism operates: mainland firms with political connections profiting from Puerto Rico's crisis while Puerto Ricans suffered without power for months.