PREPA PREC Lawsuit Fiscal Plan (03.13.18)

Case:17-04780-LTS Doc#:771 Filed:03/13/18 Entered:03/13/18 17:53:43 Desc: Main
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UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF PUERTO RICO
In re: PROMESA
Title III
THE FINANCIAL OVERSIGHT AND
MANAGEMENT BOARD FOR PUERTO RICO,
as representative of Case No. 17-04780 (LTS)
PUERTO RICO ELECTRIC POWER AUTHORITY,
Debtor.1
NOTICE OF REMOVAL
To the Honorable United States District Court Judge Laura Taylor Swain:
The Puerto Rico Fiscal Agency and Financial Advisory Authority (“AAFAF”), as fiscal
agent for the Puerto Rico Electric Power Authority (“PREPA”), pursuant to the authority granted
to it under the Enabling Act of the Fiscal Agency and Financial Advisory Authority, Act 2-2017
(“Act 2-2017”), hereby removes (the “Removal”) to the United States District Court for the District
of Puerto Rico (the “District Court”), pursuant to section 306(d)(1) of the Puerto Rico Oversight,
Management, and Economic Stability Act (“PROMESA”)2 and Rule 9027 of the Federal Rules of
Bankruptcy Procedure (the “Bankruptcy Rules”), made applicable in this case pursuant to
PROMESA section 310, 48 U.S.C. § 2170, the following civil action:
(a) Comisión de Energía de Puerto Rico v. Autoridad de Energía Eléctrica de Puerto

Rico No. SJ2018cv01081 filed in the Estado Libre Asociado de Puerto Rico
Tribunal General de Justicia Tribunal de Primera Instancia Sala Superior de San
Juan (the “Local Court”) on March 5, 2018 (the “Civil Action”).
In support of this Removal, AAFAF respectfully states as follows:
1
The last four (4) digits of PREPA’s federal tax identification number are 3747.
2
PROMESA is codified at 48 U.S.C. §§ 2101-2241.
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I. FACTS SUPPORTING REMOVAL
A. Procedural Posture of the Civil Action
1. The Civil Action is a judicial action seeking, among other relief, to compel
PREPA’s compliance with two orders3 (collectively, the “Orders”) issued by the Comisión de
Energía de Puerto Rico, identified hereinafter by its English acronym as PREC (the Puerto Rico
Energy Commission), and a declaration that compelling compliance with the Orders does not
violate PROMESA. As explained more fully in section I.C below, the Civil Action involves a
demand that PREPA comply with: (1) the PREC order issued on November 17, 2017 in the matter
In re: Temporary Oversight Measures Related to the Procurement and Management of Restoration
Services by PREPA, Case No. CEPR-MI-2017-0008 (the “Procurement Order”); and (2) the PREC
order issued on the morning of March 5, 2018 in the matter In re: Puerto Rico Electric Power
Authority’s Fiscal Plan, Case No. CEPR-IN-2018-001 (the “Fiscal Plan Order”). In addition to
violating Puerto Rico law, the Orders directly invade the authority of the Oversight Board over
fiscal and budgetary matters relating to PREPA under PROMESA sections 201-205, 48 U.S.C. §§
2141-2145, and infringe upon the authority granted by Act 2-2017 to AAFAF as the exclusive
representative of the Governor on behalf of the Commonwealth in the creation, execution,
supervision and oversight of any Fiscal Plan pursuant to PROMESA section 303, 48 U.S.C. §
2163.
2. PREPA is a party to the Civil Action, and AAFAF, as PREPA’s fiscal agent,
financial advisor and reporting agent under Act 2-2017, has standing to remove the Civil Action
under PROMESA section 306(d)(1), 48 U.S.C. § 2166(d)(1). The Civil Action presents challenges
to the scope of the Oversight Board’s authority over fiscal plans and budgets, all of which are
3
True and correct copies of the Rate Orders as entered in the Civil Action are included in the attachments referenced
in paragraph 20 of this Notice.
2
subject to Oversight Board review and approval under PROMESA sections 201 and 202, 48 U.S.C.
§§ 2141, 2142, and seeks a declaration from the Local Court as to an interpretation of the limits of
PROMESA.
B. The Oversight Board and PREPA’s Title III Case
3. On June 30, 2016, the Oversight Board was established in accordance with
PROMESA section 101(b). On August 31, 2016, President Obama appointed the Oversight
Board’s seven voting members.
4. On September 30, 2016, the Oversight Board designated PREPA as a “covered
territorial instrumentality” under PROMESA section 101(d).
5. Pursuant to PROMESA section 315, “[t]he Oversight Board in a case under this
title is the representative of the debtor” and “may take any action necessary on behalf of the debtor
to prosecute the case of the debtor, including filing a petition under section 304 of [PROMESA] .
. . or otherwise generally submitting filings in relation to the case with the court.”4
6. On June 29, 2017, the Oversight Board issued a restructuring certification pursuant
to PROMESA sections 104(j) and 206. On July 2, 2017, the Oversight Board filed a voluntary
petition for relief for PREPA pursuant to section 304(a) of PROMESA, commencing PREPA’s
case under title III of PROMESA (the “Title III Case”).
7. Background information regarding PREPA and the commencement of this Title III
Case is contained in the Notice of Statement of Oversight Board Regarding PREPA’s Title III Case
[D.I. #2].
4
The Financial Oversight and Management Board for Puerto Rico (the “Oversight Board”), as PREPA’s
representative pursuant to PROMESA section 315(b), has authorized AAFAF to file this Notice.
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C. Prior Actions By and Involving PREC
8. As the Court is aware, AAFAF previously removed certain civil actions pertaining
to PREC Rate Orders, which were the subject of judicial review, to this Court. See Instituto de
Conservación y Competitividad Económica de P.R. v. Comisión de Energía de P.R. & Autoridad
de Energía Eléctrica de P.R., Case No. KLRA201700444; Autoridad de Energia de P.R. &
Instituto de Conservacion y Competitividad Economica de P.R. v. Comision de Energia Eléctrica
de P.R., Case No. KLRA20170446, both filed in the Estado Libre Asociado de Puerto Rico
Tribunal de Apelaciones Región Judicial de San Juan-Caguas on May 30, 2017. In the Rate
Orders, PREC not only determined rates for PREPA, but also made broad rulings and issued
directives regarding the scope of its powers and authority with respect to, among other things,
PREPA’s budget and spending; these directives directly conflict with the role and undermine the
authority of the Oversight Board. Although another party to the prior Rate Case filed a motion to
remand, PREC did not join in that remand motion. PREC filed a “Response,” but did not ask this
Court to remand the civil actions to the Commonwealth Court from which it was removed.
9. In addition, PREC on the evening of March 4, 2018, commenced a flurry of activity.
That evening, PREC filed a Verified Adversary Complaint in this Court against the Financial
Oversight Management Board and PREPA seeking preliminary and permanent injunctive relief to
enjoin “FOMB from mandating that PREPA take substantive electricity actions without [PREC]
approval.” (the “PREC Adversary Complaint”) PREC included a Motion for Preliminary
Injunction with its papers. See P.R. Energy Comm. v. P.R. Fiscal Agency and Financial Advisory
Authority and P.R. Electric Power Auth., Case No. 18-ap-00021-LTS (D.P.R. Mar. 4, 2018).
10. The next morning, March 5, 2018, PREC entered the Fiscal Plan Order. PREC
served the Fiscal Plan Order by electronic mail at 8:52 a.m. AST. In the Fiscal Plan Order, PREC
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demanded that PREPA submit the draft Fiscal Plan that it previously had submitted to the
Oversight Board that afternoon by 3:00 p.m. AST.
11. PREC was not finished. On the evening of March 5, 2018, PREC filed the Civil
Action that is the subject of this removal and served it on PREPA on March 6, 2018. The Court
of First Instance entered an Order on March 7, 2018 requiring PREPA to respond to the Civil
Action by Wednesday, March 14, 2018.
D. The Civil Action is Subject to Removal to this Court
12. The organization and authority of PREC are established by the Puerto Rico Energy
Transformation and RELIEF Act, Act 57-2014 (“Act 57-2014”), of the Laws of Puerto Rico, as
amended by the Electric Power Authority Revitalization Act, Act 4-2016 (“Act 4-2016”).
Subsections (ll) and (nn) of Article 6.3 of Act 57-2014 provide, in pertinent part, “The Energy
Commission shall have the following powers and duties: … (ll) Sue and be sued in complaints or
causes of action in its own name against any natural or juridical person that fails to meet or
interferes with the requirements, purposes and objectives of [Act 57-2014] before the Court of
First Instance or any other administrative forum of the Commonwealth of Puerto Rico [and] …
(nn) File recourses, issue orders, and seek and grant any legal remedies that may be necessary to
enforce the provisions of this Act, as well as its rules, regulations, orders, and determinations.”5
13. The Civil Action was filed pursuant to PREC’s authorization to file a complaint
against a “person that fails to meet or interferes with the requirements” of Act 57-2014, and to
pursue “legal remedies that may be necessary to enforce” PREC orders.
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While Act 57-2014 was amended by Act 4-2016, the above-quoted operative language of Act 57-2014 remained
unchanged.
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14. The Orders infringe directly upon the authority of (i) the Oversight Board over
fiscal and budgetary matters relating to PREPA under PROMESA sections 201-205, 48 U.S.C.
§§2141-2145, and (ii) the Government of Puerto Rico, acting through PREPA’s board and
management to control the business and operations of PREPA and AAFAF as the fiscal agent for
PREPA pursuant to Act 2-2017, as expressly preserved in PROMESA section 303, 48 U.S.C.
§2163. The broad overreach of the Orders extends far beyond the regulatory authority of
PREC. Specifically, the Procurement Order seeks to fabricate entirely novel oversight authority
for PREC and purports to establish a process under which PREPA’s contracts for emergency
system restoration following the devastation caused by Hurricanes Irma and Maria are subject to
PREC oversight and approval. The Procurement Order directly conflicts with the Governor’s
appointment of a receiver to oversee PREPA’s procurement process. On November 8, 2017,
Governor Rosselló issued Executive Order 2017-66 establishing the Office of Contract and
Procurement Compliance (“OCPC”) to oversee PREPA’s procurement activity and process.
OCPC’s mission is to ensure compliant and efficient PREPA procurement to support the
restoration of power, recovery, and rebuilding of a stronger Puerto Rico. The process that PREC
is seeking to impose impermissibly interferes with PREPA’s procurement process and directly
conflicts with the Governor’s determination to appoint a receiver to oversee PREPA’s
procurement, in clear violation of PROMESA section 303, 48 U.S.C. §2163.[1]
15. The Fiscal Plan Order likewise seeks to illegally interpose PREC in PREPA’s
preparation and revision of its Fiscal Plan subject to the Oversight Board’s authorization pursuant
to those same powers granted by PROMESA.
[1]
As the scope of the Orders far transcends the regulatory power of PREC, it is only through removal of the Civil
Action in its entirety that this Court can ensure that the budgetary and fiscal authority of the Oversight Board and
managerial control of the PREPA board and management are preserved in a manner that is consistent with the goals
and provisions of PROMESA.
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16. The Fiscal Plan Order also usurps the authority the Puerto Rico Legislature granted
exclusively to AAFAF under the Enabling Act. Act 2-2017 established AAFAF as the “fiscal
agent, financial advisor, and reporting agent of all entities of the Government of Puerto Rico” and
designated AAFAF as the exclusive governmental entity responsible for “collaboration,
communication, and cooperation” between the Oversight Board, see § 5(a), and Puerto Rico’s
then-existing governmental entities—including “commissions” such as PREC, § 3(d). The
Enabling Act empowers AAFAF to “collaborate in conjunction with the Governor of Puerto Rico
and his representatives in the creation, execution, supervision, and oversight of any Fiscal Plan
. . . .” Id. § 5(b). No other government entity under either PROMESA or Puerto Rico law is
authorized as a governmental representative to engage with the Oversight Board regarding Fiscal
Plans.
17. Further, PREC in Section VII of the Civil Action Complaint seeks a declaration
that issuance of and seeking compliance with the Orders do not violate PROMESA or Article VI
of the United States Constitution.
18. As it is functionally impossible for PREPA to comply with the Fiscal Plan process
set forth in PROMESA and PREC’s Fiscal Plan Order, it is properly within the jurisdiction of this
Court to adjudicate the Civil Action in a manner that gives effect to the Supremacy Clause included
in PROMESA section 4, 48 U.S.C. § 2104.
19. PREC has already consented to the jurisdiction of this Court by filing a Response
in the PREC Rate Case Orders removed to this Court. That case presents similar issues regarding
Orders by PREC which exceed its authority and infringe on the rights and powers of the Oversight
Board and AAFAF over PREPA’s fiscal and budget matters.
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20. In addition, by its attempts to interfere with the operations and authorities of the
Oversight Board, PREPA, and AAFAF, PREC has consented already to the jurisdiction of the
Court and engaged in impermissible claim splitting through its PREC Adversary Complaint.
PREC in the Rate Case Orders, the Civil Action, and the PREC Adversary Complaint relies on the
identical facts and circumstances to obtain relief that would interfere with and interpose itself into
the process created by PROMESA. By making these filings in this Court, PREC consented to the
jurisdiction of the Court and acknowledged that the Court is the proper forum for the adjudication
of the issues it raised. Further, PREC’s attempt to seek adjudication on the same facts in two fora
constitutes impermissible claim splitting as determined by the law of the First Circuit and the
District of Puerto Rico. See Barreto-Rosa v. Varona-Mendez, 470 F.3d 42 (1st Cir. 2006). Without
removal of the Civil Action, there is a significant risk that inconsistent rulings as to relevant facts
and law could occur among the actions pending in this Court and the Local Court. Thus, the Civil
Action should be removed to ensure that impermissible claim splitting and conflicting rulings do
not result.
II. BASIS FOR REMOVAL
21. In light of the facts supporting removal set forth above, this Court has original
subject matter jurisdiction under PROMESA section 306(a)(2), 48 U.S.C. § 2166(a)(2), to hear
and decide the PROMESA-related claims asserted in the Civil Action as “related to” the Title III
Case. Indeed, section 306(a)(2) embodies precisely the type of federal jurisdictional grant
referenced in Act 57-2014 for proceedings such as the Civil Action. The Civil Action does not
constitute an action to enforce the police or regulatory power of a governmental unit, except insofar
as PREC seeks to impermissibly expand its authority and interfere with the Oversight Board’s
powers and mandate under PROMESA. Accordingly, AAFAF may remove the Civil Action under
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PROMESA section 306(d)(1), 48 U.S.C. § 2166(d)(1), under the procedures established by Fed.
R. Bankr. P. 9027(a).
22. Venue for removal is proper in the District Court because the Local Court lies
within this District. See 48 U.S.C. § 2166(d)(1).
23. Removal of the Civil Action is timely because this Notice is being filed within 30
days after receipt of a copy of the initial pleading setting forth the claim or cause of action sought
to be removed. See Fed. R. Bankr. P. 9027(a)(3)(A).
24. The Civil Action is and remains subject to the automatic stay imposed by section
362 of the title 11 of the United States Code, made applicable by section 301(a) of PROMESA, 48
U.S.C. §2161(a). The Civil Action does not constitute an action to enforce the police or regulatory
power of a governmental unit, except insofar as PREC seeks to impermissibly expand its authority
and interfere with the Oversight Board’s powers and mandate under PROMESA. Nothing in this
Notice is intended or shall be construed as a waiver of the automatic stay.
25. PREPA will promptly file a true and correct copy of this Notice with the Clerk of
the Local Court.
26. PREPA will promptly serve a true and correct copy of this Notice of Removal upon
counsel for all parties to the Civil Action.
III. STATEMENT REGARDING CONSENT TO ENTRY OF FINAL ORDERS
27. Bankruptcy Rule 9027(a)(3) requires “a statement that upon removal of the claim
or cause of action the party filing the notice does or does not consent to entry of final orders or
judgment by the bankruptcy court[.]” Fed. R. Bankr. P. 9027(a)(3). AAFAF respectfully submits
that such a statement is not necessary under the circumstances in this matter. Removal of the Civil
Action does not come within the plain meaning of Rule 9027(a)(3) in that the District Court is not
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a “bankruptcy court.” Id. Moreover, the District Court is constituted under Article III of the
United States Constitution so that there should be no question as to its authority to enter final
orders or judgment. Cf. Stern v. Marshall, 564 U.S. 462, 131 S. Ct. 2594, 2604, 180 L. Ed. 2d 475
(2011) (non-Article III bankruptcy courts may not enter final orders or judgments in certain
circumstances). Notwithstanding the foregoing, AAFAF states that it consents to entry of final
orders or judgment by the District Court in the Civil Action.
IV. RESERVATION OF RIGHTS
28. AAFAF files this Notice without prejudice to or waiver of its rights pursuant to
PROMESA section 305,6 and does not by this Notice provide any consent otherwise required by
section 305. 48 U.S.C. §2165.
V. PLEADINGS
29. Pursuant to Bankruptcy Rule 9027(a)(1), copies of all process and pleadings filed
in the Civil Action are being filed as Exhibit A. Certified translations, as applicable, of all process
and pleadings filed in the Civil Action are being filed as Exhibit B.
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PROMESA section 305 provides:
LIMITATIONS ON JURISDICTION AND POWER OF COURT.
Subject to the limitations set forth in titles I and II of this Act, notwithstanding any provision in this title to
the contrary, unless the Oversight Board consents or the plan so provides, the court may not, by any stay,
order, or decree, in the case or otherwise, interfere with—
(1) any of the political or governmental powers of the debtor;
(2) any of the property or revenues of the debtor; or
(3) the use or enjoyment by the debtor of any income-producing property.
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Dated: March 13, 2018 Respectfully submitted,

San Juan, Puerto Rico
THE PUERTO RICO FISCAL AGENCY AND
FINANCIAL ADVISORY AUTHORITY,
By its attorneys,
/s/__Nancy A. Mitchell___________________
Nancy A. Mitchell (admitted pro hac vice)
Nathan A. Haynes (admitted pro hac vice)
Greenberg Traurig, LLP
200 Park Avenue
New York, NY 10166
Phone: 212.801.9200
Fax : 212.801.6400
Email: mitchelln@gtlaw.com
haynes@gtlaw.com
David D. Cleary (admitted pro hac vice)

Kevin D. Finger (admitted pro hac vice)
77 West Wacker Drive
Suite 3100
Chicago, IL 60601
Phone: 312.456.8400
Fax: 312.456.8435
Email: clearyd@gtlaw.com
fingerk@gtlaw.com
Joseph P. Davis III (admitted pro hac vice)

One International Place, Suite 2000
Boston, MA 02110
Phone: 617.310.6000
Fax : 617.310.6001
Email: davisjo@gtlaw.com
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PUERTO RICO ELECTRIC POWER

AUTHORITY
By its attorneys,
s/ Arturo Díaz Angueria

USDC No. 117907
s/ Katiuska Bolaños Lugo

USDC No. 231812
CANCIO, NADAL, RIVERA & DÍAZ, P.S.C.

PO Box 364966
San Juan, PR 00936-4966
Tel. (787) 767-9625
Fax (787) 764-4430
adiaz@cnrd.com
kbolanos@cnrd.com
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Exhibit A
Copies of all Process and Pleadings in the Civil Action

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ESTADO LIBRE ASOCIADO DE PUERTO RICO

TRIBUNAL GENERAL DE JUSTICIA
TRIBUNAL DE PRIMERA INSTANCIA
SALA SUPERIOR DE SAN JUAN
COMISIÓN DE ENERGÍA DE PUERTO RICO CIVIL NÚM.:
Demandante SOBRE:
v. SOLICITUD DE ORDEN EN
AUXILIO DE JURISDICCIÓN ANTE
AUTORIDAD DE ENERGÍA ELÉCTRICA DE INCUMPLIMIENTO CON ÓRDENES
PUERTO RICO
Demandada
DEMANDA URGENTE EN SOLICITUD DE ORDEN

EN AUXILIO DE JURISDICCIÓN
AL HONORABLE TRIBUNAL:
Comparece la demandante, Comisión de Energía de Puerto Rico (“Comisión”),
representado por la abogada que suscribe, y muy respetuosamente expone, alega y
solicita:
I. Introducción
Mediante esta Demanda, la Comisión de Energía de Puerto Rico solicita a este
Honorable Tribunal que ordene, en auxilio de la jurisdicción de la Comisión, a la
Autoridad de Energía Eléctrica de Puerto Rico (AEE) a cumplir, con carácter de urgencia,
con las siguientes órdenes, so pena de desacato civil a su Director Ejecutivo y a cualquier
otro funcionario responsable por el incumplimiento de la AEE:
a) La Orden (Order) emitida el 17 de noviembre de 2017 en el asunto In re:
Temporary Oversight Measures Related to the Procurement and Management
of Restoration Services by PREPA, Case No. CEPR-MI-2017-0008. En
específico, se solicita que se ordene a la AEE, so pena de desacato civil a su
Director Ejecutivo y a cualquier otro funcionario responsable, a:
(i) Incluir en todos los contratos que otorgue, que sean de los tipos
descritos en el primer párrafo de la Parte II (a) de dicha Orden, las
cláusulas y disposiciones requeridas por la Comisión en los sub-incisos
(1) al (11) de esa parte de la Orden;

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(ii) Entregar inmediatamente a la Comisión los documentos y la
información que se requieren en la Parte II (b) de dicha Orden; y
(iii) No otorgar contratos de los tipos descritos en el primer párrafo de la
Parte II (a) de dicha Orden, ni enmiendas a dichos contratos, sin antes
haber sometido el proyecto de contrato a la Comisión y haber obtenido
el aval de la Comisión para su perfeccionamiento. Véase, Anejo I.
b) La Resolución y Orden (Resolution and Order) emitida el 5 de marzo de 2018 en
el asunto In re: Puerto Rico Electric Power Authority’s Fiscal Plan, Case No.
CEPR-IN-2018-0001. En específico, se solicita que se ordene a la AEE, so pena
de desacato civil a su Director Ejecutivo y a cualquier otro funcionario
responsable, a entregar a la Comisión copia fiel y exacta de la propuesta de
Plan Fiscal que la AEE presentó ante la Junta de Supervisión Fiscal (“JSF”) el
pasado 12 de febrero de 2018, así como la lista de los empleados y consultores
de la AEE con conocimiento para explicar en detalle el contenido de dicha
propuesta de Plan Fiscal, y la relación entre temas y consultores o empleados.
Véase, Anejo II.
La demandante, Comisión de Energía de Puerto Rico, es una entidad pública de la
Rama Ejecutiva de Puerto Rico con personalidad jurídica propia, altamente especializada
e independiente, creada por la Ley 57-2014, según enmendada, conocida como la Ley de
Transformación y ALIVIO Energético de Puerto Rico (“Ley 57-2014”), con el objetivo de
reglamentar el sector eléctrico en Puerto Rico. A tenor con la citada Ley 57-2014, la
Comisión está encargada de reglamentar y supervisar la industria eléctrica, adjudicar
controversias sobre ese sector, y hacer cumplir la política pública energética de Puerto
Rico. En apretada síntesis, la misión principal de la Comisión es lograr que Puerto Rico
tenga un sistema eléctrico confiable, eficiente y transparente, que provea servicio eléctrico
a precios razonables. Desde luego, una de las entidades sujetas a la regulación y órdenes
de la Comisión es la AEE.
Entre los amplios poderes delegados a la Comisión bajo la Ley 57-2014 están:
• “Establecer mediante reglamento las normas de política pública en relación
con las compañías de servicio eléctrico, así como toda transacción, acción u
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omisión que incida sobre la red eléctrica y la infraestructura eléctrica en
Puerto Rico, e implementar dichas normas de política pública”, Artículo 6.3
(b);
• “[E]stablecer e implementar los reglamentos y las acciones regulatorias
necesarias para garantizar la capacidad, confiabilidad, seguridad,
eficiencia y razonabilidad en tarifas del sistema eléctrico de Puerto Rico y
establecer las guías, estándares, prácticas y procesos a seguir para los
procesos que la [AEE] lleve a cabo para la compra de energía a otras
compañías de servicio eléctrico y/o modernice sus plantas o instalaciones
generadoras de energía, disponiéndose que todo contrato de compraventa
de energía deberá cumplir con los estándares, términos y condiciones
establecidos por la Comisión”, Artículo 6.3 (c);
• “Fiscalizar la calidad y confiabilidad del servicio eléctrico de la [AEE] y
de cualquier otra compañía de energiía certificada en Puerto Rico”, Artículo
6.3 (d);
• “Formular e implementar estrategias para lograr los objetivos de [la] Ley
[57-2014], incluyendo, pero sin limitarse a, lograr la meta de reducir y
estabilizar los costos energéticos permanentemente y controlar la
volatilidad del precio de la electricidad en Puerto Rico. En el ejercicio de sus
poderes y facultades, la Comisión de Energía requerirá que los precios en
todo contrato de compraventa de energía, toda tarifa de trasbordo y todo
cargo de interconexión eléctrica sean justos y razonables, cónsonos con el
interés público y cumplan con los parámetros que establezca esta Comisión
vía reglamento”, Artículo 6.3 (f);
• “Revisar y aprobar políticas, planes estratégicos y planes a corto, mediano
y largo plazo relacionados con la planificación integrada de recursos
energéticos en Puerto Rico, y fiscalizar el cumplimiento con los mismos”,
Artículo 6.3 (h).
• Aprobar los Planes Integrados de Recursos para la AEE, Artículo 6.23;
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• “Aprobar y revisar, según fuere aplicable, modificar las tarifas o cargos que
cobren las compañías de servicio eléctrico[, incluída la AEE,] en Puerto Rico
por cualquier asunto directa o indirectamente relacionado con la prestación
del servicio eléctrico”, Artículo 6.3 (k) y (m);
• “[R]equerir y recopilar toda la información pertinente o necesaria para el
adecuado desempeño de sus poderes y deberes”, Artículo 6.3 (l);
• “Establecer estándares de confiabilidad de la red eléctrica de Puerto Rico
siguiendo parámetros reconocidos por entidades gubernamentales o no
gubernamentales especializados en el servicio eléctrico, y fiscalizar el
cumplimiento con los mismos”, Artículo 6.3 (v);
• “Recopilar y analizar todo tipo de información oportuna y confiable sobre
la generación, distribución, utilización y consumo de energía”, Artículo 6.3
(w);
• “Llevar a cabo inspecciones, investigaciones y auditorías, de ser necesarias,
para alcanzar los propósitos de [la] Ley [57-2014]”, Artículo 6.3 (y);
• “Realizar estudios e investigaciones periódicas sobre la generación,
transmisión y distribución, utilización y consumo de energía, […] para
determinar las necesidades energéticas de Puerto Rico durante cualquier
período de tiempo”, Artículo 6.3 (z);
• “Adoptar reglas, pronunciamientos y reglamentos que sean necesarios para
cumplir con sus deberes, emitir órdenes y establecer multas para dar
cumplimiento a las facultades que por ley se le conceden, y para la
implementación de [la] Ley [57-2014]” Artículo 6.3 (mm); e
• Interponer los recursos que sean necesarios para “hacer que se cumplan sus
reglas, reglamentos, órdenes y determinaciones”, Artículo 6.3 (nn).
(Énfasis suplido). Véase, en general, 9 LPRA § 1054b.
Tras la constitución de la JSF a tenor con la Ley Pública 114-187 conocida como el
Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”), la AEE
se ha negado consistentemente a cumplir con órdenes de la Comisión y ha obstaculizado
los procesos regulatorios, bajo la premisa jurídicamente incorrecta de que PROMESA y
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los poderes delegados a la JSF bajo esa ley federal tienen supremacía y preeminencia
sobre todas las facultades de la Comisión bajo la Ley 57-2014. Proponer y concluir que
PROMESA convirtió a la JSF en el regulador de la industria y el servicio eléctrico en
Puerto Rico, y que la aprobación de PROMESA y la delegación de poderes a la JSF ha
tenido el efecto práctico de derogar la Ley 57-2014, de despojar a la Comisión de todos
sus poderes, y de hacerla irrelevante –como parece argüir la AEE–, no solo es irrazonable
sino que contraviene el espíritu y las propias disposiciones de PROMESA que definen los
poderes de la JSF y reconocen la existencia de la Comisión, su creación y sus poderes bajo
la Ley 57-2014. Véase, Secciones 501 y 503 (a)(1)(F)(vi) y (b)(1)(D) de PROMESA, 48 U.S.C.
§§ 2211-2213.
Como cuestión de derecho, PROMESA exige que se respete la legislación y
reglamentación local, véase Sección 303 de PROMESA, 48 U.S.C. § 2163, lo que por su
puesto incluye la Ley 57-2014 y las órdenes y reglamentos de la Comisión al amparo de
dicha Ley. Y es que los poderes delegados por PROMESA a la JSF sobre la AEE son de
naturaleza principalmente fiscal, y no sobre materias sustantivas en cuanto al servicio
eléctrico. Como explicaremos a continuación, la AEE no puede negarse a cumplir con las
órdenes de la Comisión bajo el pretexto de la supuesta supremacía de PROMESA, ya que
PROMESA no ocupa campo alguno de legislación, y las órdenes de la Comisión en
cuestión no son incompatibles –de forma alguna– con PROMESA ni con el ejercicio de los
poderes delegados por PROMESA a la JSF.
Más aún, independientemente del alcance de los poderes de la JSF sobre entidades
públicas del Gobierno de Puerto Rico declaradas por ésta como covered territorial
instrumentalities (como es el caso de la AEE), el cumplimiento de la AEE con las órdenes
de la Comisión para cuya ejecución solicitamos el auxilio de este Honorable Tribunal,
no tiene impacto sobre el fisco o estate de la AEE, ni impide de forma alguna que la
JSF ejerza sus poderes sobre la AEE. Ello descarta, de su faz, cualquier planteamiento
de preeminencia y sobreseimiento que pueda hacer la AEE o sus agentes para tratar de
atacar estas órdenes de la Comisión y, con ello, tratar de regresar al estado de monopolio
desregulado en grave perjuicio de todos los clientes de servicio eléctrico en Puerto Rico,
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del interés público y de las demás compañías de servicio eléctrico que operan o que
desean establecer operaciones en Puerto Rico.
II. Las Partes
1) La demandante, Comisión de Energía de Puerto Rico, en una entidad pública de
la Rama Ejecutiva del Gobierno de Puerto Rico creada por la Ley 57-2014 con
personalidad jurídica propia, conocimiento especializado y amplios poderes para
regular la industria eléctrica en Puerto Rico. La dirección física y postal de la
Comisión es Edificio World Plaza, 268 Avenida Muñoz Rivera Suite 702, San Juan,
PR 00918; su número de teléfono es (787) 523-6262; y su dirección de correo
electrónico es cepr@energia.pr.gov. El Presidente Interino de la Comisión es el Ing.
José H. Román Morales.
2) La demandada, Autoridad de Energía Eléctrica de Puerto Rico, es una compañía
de servicio eléctrico que a su vez es una corporación pública del Gobierno de
Puerto Rico creada por la Ley Núm. 83 de 2 de mayo de 1941, según enmendada,
conocida como la Ley de la Autoridad de Energía Eléctrica de Puerto Rico. Su
dirección física es 1110 Ave. Ponce de León, Edificio Neos, piso 8 oficina 801, San
Juan, PR; su dirección postal es PO Box 363928, Correo General, San Juan, PR
00936-3928; su número de teléfono es (787) 521-3434; y su correo electrónico es j-
morales@aeepr.com; n-vazquez@aeepr.com; c-aquino@aeepr.com; y n-
ayala@aeepr.com. Su Director Ejecutivo Interino es el Ing. Justo L. González
Torres.
III. Jurisdicción de este Honorable Tribunal y Legitimación Activa de la

Comisión
3) La Comisión de Energía de Puerto Rico acude ante este Honorable Tribunal en
virtud de lo dispuesto en el Artículo 5.001 de la Ley 201-2003, según enmendada,
conocida como la Ley de la Judicatura del Estado Libre Asociado de Puerto Rico
de 2003, 4 LPRA §25a; y en virtud de lo dispuesto en los incisos (ll) y (nn) del
Artículo 6.3 de la Ley 57-2014, los cuales, en su parte pertinente, establecen:
La Comisión de Energía tendrá los poderes y deberes que se

establecen a continuación:
[…]
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(ll) Demandar y ser demandada en reclamaciones o causas de

acción a nombre propio en el Tribunal de Primera Instancia
del Estado Libre Asociado de Puerto Rico contra cualquier
persona natural o jurídica que incumpla o interfiera con los
requisitos, fines y objetivos de esta Ley, o en cualquier otro
foro administrativo del Estado Libre Asociado de Puerto Rico.
A tales fines, se le reconoce legitimación activa a la Comisión
para interponer los recursos necesarios ante el foro judicial
para asegurar el cabal cumplimiento con la política pública
establecida en esta Ley;
[…]
(nn) Interponer los recursos, emitir órdenes y confeccionar y

otorgar cualesquiera remedios legales que fueran necesarios
para hacer efectivos los propósitos de esta Ley y hacer que se
cumplan sus reglas, reglamentos, órdenes y determinaciones.
IV. Importancia de las Órdenes con las que la AEE está en Incumplimiento
Según expusimos en la Introducción, en esta Demanda la Comisión solicita el
auxilio de este Honorable Tribunal para obtener el cabal cumplimiento de la AEE, so pena
de desacato civil a su Director Ejecutivo y a cualquier otro funcionario responsable, con
las siguientes órdenes de la Comisión: (1) la Orden (Order) emitida el 17 de noviembre de
2017 en el asunto In re: Temporary Oversight Measures Related to the Procurement and
Management of Restoration Services by PREPA, Case No. CEPR-MI-2017-0008, véase
Anejo I; y (2) la Resolución y Orden (Resolution and Order) emitida el 5 de marzo de 2018
en el asunto In re: Puerto Rico Electric Power Authority’s Fiscal Plan, Case No. CEPR-IN-
2018-0001, véase Anejo II. Esto, a tenor con la autoridad que la Ley 57-2014 confirió a la
Comisión de “[i]nterponer los recursos, emitir órdenes y confeccionar y otorgar
cualesquiera remedios legales que fueran necesarios para hacer efectivos los propósitos
de [la Ley 57-2014] y hacer que se cumplan sus reglas, reglamentos, órdenes y
determinaciones”. Artículo 6.3 (nn) de la Ley 57-2014, 9 LPRA § 1054b.
Para beneficio de este Honorable Tribunal, a continuación explicamos el contexto
en el que la Comisión emitió cada una de estas órdenes –con las cuales la AEE está
incumpliendo–, y su importancia. Como podrá corroborar este Honorable Tribunal,
ambas órdenes están claramente enmarcadas y comprendidas dentro del alcance de la
autoridad y jurisdicción que la Ley 57-2014 confirió a la Comisión, no solo sobre la AEE,
sino sobre todo el sector eléctrico de Puerto Rico.
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A) Orden (Order) emitida el 17 de noviembre de 2017 en el asunto In re: Temporary

Oversight Measures Related to the Procurement and Management of
Restoration Services by PREPA, Case No. CEPR-MI-2017-0008, véase Anejo I.
La Comisión emitió esta Orden con el objetivo de implementar ciertas medidas
para promover y asegurar la rendición de cuentas, prudencia y razonabilidad en los
esfuerzos para restaurar el servicio eléctrico tras el paso del huracán María por el
archipiélago de Puerto Rico, y evitar el derroche de recursos, fraude y prácticas abusivas
por parte de la AEE y posibles o actuales contratistas. La Comisión explicó que las
medidas anunciadas y requeridas en esta Orden eran necesarias y esenciales a raíz del
escándalo sobre la contratación de Whitefish Energy Holdings, LLC (“Whitefish”) y de
otros contratos otorgados por la AEE que demostraban su falta de disciplina, escrutinio
y prudencia. Ello, más aún cuando, por ser la AEE una corporación pública (sin
accionistas que sufran consecuencias patrimoniales y paguen por la imprudencia de la
corporación), son los clientes de servicio eléctrico quienes pagan por la imprudencia y el
derroche de recursos de la AEE mediante el pago y aumento de tarifas. Es decir, por ser
la AEE una corporación pública que no tiene accionistas, es necesario tomar medidas
preventivas para evitar que la AEE continué incurriendo en gastos imprudentes, pues,
una vez la AEE incurre en tales gastos, no hay otra opción que no sea permitir que la AEE
recaude mediante el cobro de tarifas los ingresos necesarios para cubrir esos gastos
imprudentes. En la medida en que no hay accionistas, socios o miembros que sean dueños
de la AEE, la Comisión no puede hacer que los gastos imprudentes de la AEE se
traduzcan en pérdidas para los accionistas, socios o miembros, en vez de en aumentos
tarifarios que afectan a los consumidores.
Con este trasfondo, en la Parte II (a) de la Orden, la Comisión ordenó a la AEE a
incluir once (11) cláusulas o disposiciones particulares en todos los (i) contratos para
compra de combustible, compraventa de energía y servicios al grid que tengan un valor
agregado de $10 millones o más; (ii) contratos para trabajos de infraestructura que tengan
un valor agregado de $1 millón o más; y (iii) contratos de servicios profesionales por la
cantidad de $250,000 o más, que sean otorgados por la AEE luego del 17 de noviembre
de 2017. Una de las once (11) cláusulas que, a tenor con esta Orden, la AEE debe incluir
en los contratos antes mencionados va dirigida a establecer que el contrato no entrará
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en vigor hasta tanto la AEE reciba aprobación por escrito de la Comisión, o hasta que
pasen cinco (5) días desde la fecha en que la AEE haya sometido el contrato a la
Comisión sin que ésta haya tomado acción dentro de dicho término.
En la Parte II (b) de la Orden, la Comisión ordenó a la AEE a someter ciertos
documentos e información y a ejecutar ciertas acciones en relación con los proyectos de
contrato mencionados en la Parte II (a). Entre éstas, se ordenó a la AEE a someter ante la
Comisión (para su evaluación y aprobación previa) los proyectos de esos tipos de
contrato que la AEE se propusiera otorgar. También requirió a la AEE someter las
enmiendas que se propusieran a esos contratos, antes de su otorgamiento.
B) Resolución y Orden (Resolution and Order) emitida el 5 de marzo de 2018 en el

asunto In re: Puerto Rico Electric Power Authority’s Fiscal Plan, Case No. CEPR-
IN-2018-0001, véase Anejo II.
El 31 de enero de 2018 la Comisión inició una investigación sobre las
representaciones hechas y el contenido de la propuesta de Plan Fiscal que la AEE presentó
a la JSF el pasado 24 de enero de 2018. Entre los objetivos de la investigación está (i)
evaluar las iniciativas allí identificadas por la AEE en relación con el desarrollo de sus
operaciones, rendimiento (performance), estructura tarifaria y planificación de recursos,
(ii) examinar los posibles impactos que tendrían dichas iniciativas en la industria eléctrica
de Puerto Rico y en los clientes de servicio eléctrico, y (iii) determinar si las iniciativas
contempladas en el Plan Fiscal en materia sustantiva sobre la generación, transmisión y
distribución de servicio eléctrico son o no consistentes con las disposiciones de la Ley 57-
2014 y los reglamentos y órdenes de la Comisión. Mediante la referida orden de 31 de
enero de 2018, la Comisión requirió a la AEE responder múltiples preguntas relacionadas
con varios asuntos sustantivos en materia de servicio eléctrico que fueron abordados en
la propuesta de Plan Fiscal, tales como: la generación, transmisión y distribución de
energía; servicio al cliente y facturación; el cumplimiento con regulación ambiental; los
retos tras el paso de los huracanes Irma y María, y la restauración del servicio eléctrico;
las necesidades presupuestarias de la AEE para poder operar y proveer servicio eléctrico,
y dineros solicitados y recibidos de entidades o programas del gobierno federal; la
estructura tarifaria, el diseño de tarifas y la distribución de costos entre los clientes de
servicio eléctrico; y el Plan Integrado de Recursos, entre otros.
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Las referidas preguntas no fueron contestadas por la AEE y la información requerida
en la orden de 31 de enero de 2018 no fue recibida por la Comisión. No obstante, según
trascendió en los medios de comunicación, el pasado 5 de febrero de 2018 la JSF devolvió a la
AEE su propuesta de Plan Fiscal (de 24 de enero de 2018) para que fuese revisada y modificada,
y sometida nuevamente a la JSF en o antes del 12 de febrero de 2018. Véase,
https://juntasupervision.pr.gov/wp-content/uploads/wpfd/43/5a78d5c643e93.pdf.
Ante tales desarrollos, en la mañana del 5 de marzo de 2018, la Comisión emitió
una nueva Orden bajo la investigación CEPR-IN-2018-0001 mediante la cual requirió a la
AEE a entregar a la Comisión –en o antes de ese mismo día a las 3:00 p.m.– copia fiel y
exacta de la propuesta de Plan Fiscal que la AEE presentó ante la JSF el pasado 12 de
febrero de 2018, así como la lista de los empleados y consultores de la AEE con
conocimiento para explicar en detalle el contenido de dicha propuesta de Plan Fiscal, y la
relación entre temas y consultores o empleados. En dicha Orden, la Comisión explicó que
en la propuesta de Plan Fiscal de 24 de enero de 2018 se discutían, entre otros aspectos,
maneras de transformar el estatus quo de la AEE (e.g. la venta de unidades generatrices
de la AEE y la concesión a un tercero para operar el sistema de transmisión y distribución
de servicio eléctrico), y asume que la propuesta de Plan Fiscal de 12 de febrero de 2018
también aborda esos temas, ya que la JSF no requirió a la AEE que excluyera tema alguno
al revisar y modificar su propuesta.
Como hemos explicado, en su carácter de regulador del sector eléctrico en Puerto
Rico, es esencial que la Comisión pueda tener acceso y examinar la propuesta de Plan de
Fiscal de la AEE, ya que –a tenor con la propuesta de 24 de febrero de 2018 y la
comunicación de la JSF de 5 de febrero de 2018– en ésta se abordan asuntos que, sin duda
están bajo la jurisdicción de la Comisión, y que, más allá de la AEE, afectan la
confiabilidad y calidad del servicio eléctrico, las relaciones que se vislumbran entre la
AEE y otras compañías de servicio eléctrico, las fuentes que se planifican utilizar para
generar energía, y las operaciones de otras compañías de servicio eléctrico. Todo ello
impacta los costos del servicio eléctrico y, por tanto, las tarifas que tendrán que pagar los
consumidores.
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En atención a sus mandatos bajo la Ley 57-2014, la Comisión debe determinar si la
propuesta de Plan Fiscal es o no consistente con las disposiciones de la Ley 57-2014 y los
reglamentos y órdenes de la Comisión. Además, en atención al contenido de la propuesta
de Plan Fiscal de 24 de enero de 2017, asumimos que el contenido de la propuesta de Plan
Fiscal de 12 de febrero de 2018 tiene gran valor para efectos de la regulación de la
Comisión sobre todo el sector eléctrico en Puerto Rico, y no solo para efectos de la AEE.
V. Incumplimiento de la AEE y Solicitud de Orden, so Pena de Desacato

Civil, en Auxilio de la Jurisdicción de la Comisión
A) La AEE no ha cumplido de forma alguna con la Orden de 17 de noviembre de 2017
en el asunto In re: Temporary Oversight Measures Related to the Procurement and
Management of Restoration Services by PREPA, Case No. CEPR-MI-2017-0008.
Han pasado más de tres (3) meses desde que la Comisión emitió la Orden de 17 de
noviembre de 2017, y la AEE no ha sometido contrato alguno para la evaluación y
aprobación de la Comisión. Peor aún, como demuestran los contratos que se incluyen
como Anejos III, IV y V de esta Demanda, luego de emitida la Orden de 17 de noviembre
de 2017, la AEE ha otorgado (i) contratos para compra de combustible, compraventa de
energía, para servicios al grid y para trabajo de infraestructura que tienen un valor
agregado de $10 millones o más; y (ii) contratos de servicios profesionales por la cantidad
de $250,000 o más, sin incluir las cláusulas requeridas en la Parte II(a) de la Orden y sin
someterlos a la evaluación y aprobación de la Comisión previo a su otorgamiento. A
continuación, describimos contratos que la AEE ha otorgado en clara contravención a la
Orden de la Comisión de 17 de noviembre de 2017:
1) Contrato Núm. 2018-P00094 otorgado entre la AEE y BDO Puerto Rico
P.S.C. – Se trata de un contrato de servicios profesionales de asesoría y contabilidad por
la cantidad de $450,000.00, que fue otorgado el 7 de diciembre de 2017. Previo a su
otorgamiento, este contrato no fue sometido por la AEE a la Comisión para su evaluación
y aprobación. El contrato tampoco contiene cláusulas ordenadas por la Comisión. Véase
Anejo III y Parte II(a)(1)(2)(9) y (11) de la Orden que se acompaña como Anejo I.
2) Contrato Núm. 2018-P00102 otorgado entre la AEE y Horne Federal LLC –
Se trata de un contrato de servicios profesionales por la cantidad de $1,500,000.00. Previo
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a su otorgamiento, este contrato no fue sometido por la AEE a la Comisión para su
evaluación y aprobación. El contrato tampoco contiene cláusulas ordenadas por la
Comisión. Véase Anejo IV y Parte II(a)(1)(2)(9) y (11) de la Orden que se acompaña como
Anejo I.
3) Enmiendas (B), (C) y (D) al Contrato Núm. 2018-P00028 otorgado entre la
AEE y Cobra Acquisitions LLC – Se trata de enmiendas a un contrato otorgado por la
AEE para la restauración del sistema y servicio eléctrico por la cantidad de
$445,429,800.00 (a tenor con la Enmienda (D)). Ninguna de estas enmiendas, otorgadas el
8 de diciembre de 2017 (Contrato Núm. 2018-P00028B), el 21 de diciembre de 2017
(Contrato Núm. 2018-P00028C) y el 28 de enero de 2018 (Contrato Núm. 2018-P00028D)
–es decir, todas con posterioridad a la Orden de 17 de noviembre de 2017–, fueron
sometidas a la Comisión para su evaluación y aprobación. Asimismo, ninguna de estas
enmiendas introdujo las cláusulas requeridas por la Comisión en la Parte II(a) de la
Orden. Véase, Anejo V.
De acuerdo con la información publicada en el Registro de Contratos de la Oficina
del Contralor, los contratos que se acompañan como Anejos III, IV y V de esta Demanda
parecen ser solo una muestra de contratos otorgados por la AEE en contravención a la
Orden de la Comisión.
B) La AEE no ha cumplido con la Resolución y Orden emitida el 5 de marzo de 2018
en el asunto In re: Puerto Rico Electric Power Authority’s Fiscal Plan, Case No.
CEPR-IN-2018-0001.
El término concedido por la Comisión a la AEE para que ésta entregue copia fiel y
exacta de la propuesta de Plan Fiscal que la AEE presentó ante la JSF el pasado 12 de
febrero de 2018, así como la lista de los empleados y consultores de la AEE con
conocimiento para explicar en detalle el contenido de dicha propuesta de Plan Fiscal, y la
relación entre temas y consultores o empleados, ha transcurrido sin que la AEE haya
cumplido con lo ordenado. En conversaciones sostenidas entre consultores legales de la
AEE y de la Comisión, la AEE manifestó inquietudes ante la naturaleza alegadamente
confidencial de ciertos materiales contenidos en la propuesta de Plan Fiscal de 12 de
febrero de 2018. Según explicamos a continuación en la parte IV de esta Demanda, no hay
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razón por la cual ello deba ser una preocupación para la AEE ni para este Honorable
Tribunal, ya que, por disposición expresa de la Ley 57-2014 (i) la Comisión está obligada
a proteger información confidencial, (ii) la AEE no puede oponer planteamientos de
confidencialidad o privilegios (con excepción del privilegio abogado-cliente) para
negarse a proveer información a la Comisión, y (iii) es la Comisión quien tiene
jurisdicción primaria exclusiva para atender planteamientos de confidencialidad o
privilegios que exponga la AEE sobre documentos, materiales o información que tenga
que entregar a la Comisión.
No obstante lo anterior, con el único objetivo de agilizar la entrega de al menos la
parte sustantiva (sobre materias relacionadas, por ejemplo, con la infraestructura y confiabilidad
del servicio eléctrico) de la propuesta de Plan Fiscal, en la mañana del 5 de marzo de 2018
la Comisión propuso a la AEE que –a modo de cumplimiento parcial– entregara esta parte
sustantiva de la propuesta y que protegiera (redact) lo que la AEE entendiera es
confidencial. Esta oferta de la Comisión no implicaba una renuncia a su facultad de exigir
el documento en su totalidad, sino un arreglo temporero que permitiría que la Comisión
pudiera comenzar a examinar inmediatamente el contenido más importante (para la
Comisión) de la propuesta de Plan Fiscal presentada ante la JSF el 12 de febrero de 2018.
A pesar de ello, la AEE no sometió versión alguna de la propuesta del Plan Fiscal en
cuestión. Tampoco solicitó un término adicional para cumplir ni se comprometió de
forma alguna a cumplir con lo ofrecido.
Según hemos apuntado en esta Demanda, es apremiante que la Comisión pueda
tener acceso y examinar la propuesta de Plan Fiscal en cuanto antes, para así poder
someter sus determinaciones a la JSF sobre todos los asuntos de su expertise antes de que
la JSF decida si certifica o no dicho Plan Fiscal.
VI. La AEE No Puede Negarse a Proveer Información a la Comisión a Base de

Privilegios Evidenciarios ni Normas de Confidencialidad
El Artículo 6.15 de la Ley 57-2014, 9 LPRA § 1054n, establece:
Si alguna persona que tenga la obligación de someter

información a la Comisión de Energía entiende que la
información a someterse goza de algún privilegio de
confidencialidad, podrá pedirle a dicha Comisión que le dé
dicho tratamiento sujeto a lo siguiente:
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(a) Si la Comisión de Energía, luego de la evaluación de

rigor, entiende que la información debe ser protegida,
buscará la manera de conceder esta protección en la forma
que menos impacte al público, a la transparencia y el
derecho de las partes envueltas en el procedimiento
administrativo en el cual se somete el documento
alegadamente confidencial.
(b) A esos efectos, la Comisión de Energía podrá dar acceso al

documento, o a las partes del documento que sean
privilegiadas, sólo a los abogados y consultores externos
envueltos en el proceso administrativo luego de la ejecución
de un acuerdo de confidencialidad.
(c) La Comisión de Energía mantendrá completamente fuera

del escrutinio público documentos presentados ante ella
solamente en casos excepcionales. En esos casos, la
información será debidamente salvaguardada y entregada
exclusivamente al personal de la Comisión de Energía con
estricta necesidad de conocerla, bajo cánones de no
divulgación. No obstante, la Comisión de Energía ordenará
que se suministre una versión no confidencial para la revisión
del público.
(d) Cualquier reclamo de privilegio y confidencialidad de

información de una persona bajo la jurisdicción de la
Comisión de Energía deberá ser resuelto de forma expedita
por la Comisión mediante resolución a tales efectos, antes de
que cualquier información alegadamente confidencial por su
fuente sea divulgada. [(Énfasis suplido.)]
En atención al mandato legislativo establecido en el citado Artículo, la AEE está
impedida de negarse a proveer a la Comisión la información y documentos requeridos
en las órdenes cuyo cumplimiento, so pena de desacato civil, se solicita en auxilio de la
jurisdicción de la Comisión. Si la AEE entendiera que alguna información o algún
documento fuese total o parcialmente confidencial o privilegiado, deberá proveer la
información o documento en cuestión a la Comisión y con ello (i) identificar la parte de
la información o documento que la AEE entiende que es confidencial o privilegiado; (ii)
especificar por escrito los fundamentos legales y las fuentes de derecho que apoyan el
tratamiento confidencial o privilegiado de la información o documento; y (iii) solicitar
expresamente a la Comisión que dé tratamiento confidencial o privilegiado a la
información o documento en cuestión. Es la Comisión quien tiene, a base del Artículo
6.15 de la Ley 57-2017, jurisdicción primaria exclusiva para atender reclamos de
confidencialidad o privilegios que se hagan sobre información o documentos requeridos
por la Comisión.
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Una vez se invoque y solicite adecuadamente el tratamiento confidencial o
privilegiado, la Comisión atenderá el asunto de forma expedita mediante una resolución
a esos fines. Si la Comisión entendiera que no hay fundamentos jurídicos para el
privilegio o normas de confidencialidad invocadas, antes de publicar o divulgar la
información conforme a su resolución, la AEE tendrá oportunidad para cuestionar o
impugnar la resolución de la Comisión ante el foro judicial. En cumplimiento con las
normas de derecho administrativo, todo ello se haría constar en la resolución que en su
día emita la Comisión.
VII. Las Órdenes de la Comisión Cuyo Cumplimiento es Objeto de esta

Demanda no están en Conflicto con PROMESA, por lo cual no están
Sobreseídas (Preempted) por PROMESA
La cláusula de supremacía contenida en el Artículo VI de la Constitución de
Estados Unidos dispone que “the laws of the United States […] shall be the supreme law
of the land; and the judges in every state shall be bound thereby, anything in the
Constitution or laws of any State to the contrary notwithstanding.” Al amparo de dicha
cláusula, el Congreso puede sobreseer (i.e. invalidar) una ley estatal mediante legislación
federal, ya sea implícitamente o mediante disposiciones expresas a esos fines en una ley
federal. Oneok, Inc. v. Learjet, Inc., 135 S.Ct. 1591, 1595 (2015), citando a Sprietsma v.
Mercury Marine, 537 U.S. 51, 64 (2002). Además, el sobreseimiento o preemption de una
ley federal sobre legislación estatal puede ser de campo (i.e. field preemption) o sólo en la
medida en que exista conflicto entre las disposiciones de la ley estatal y la ley federal (i.e.
conflict preemption). Véase, id.
Cuando una ley federal ocupa el campo (i.e. field preemption) no hay cabida alguna
para la existencia de legislación estatal en el tema o campo del que se trate,
independientemente de que la legislación estatal sea consistente o no con la legislación
federal. Id., citando a Arizona v. United States, 132 S.Ct. 2492, 2502 (2012). Por el
contrario, el conflict preemption existe cuando el Congreso no ha ocupado el campo sobre
determinada materia o campo, pero (i) el cumplimiento con la ley federal y la ley estatal
es imposible, o (ii) la ley estatal constituye un obstáculo para la ejecución e implantación
de la ley federal. Véase, id., citando a California v. ARC America Corp., 490 U.S. 93, 100,
101 (1989).
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En el caso de PROMESA, ésta dispone en su Sección 4 que las disposiciones de esa
Ley federal prevalecerán sobre las leyes y reglamentos de Puerto Rico que sean
inconsistentes con PROMESA. 48 USC § 2103 (“The provisions of this Act shall prevail
over any general or specific provisions of territory law, State law, or regulation that is
inconsistent with this Act.”). Por tanto, a tono con la jurisprudencia citada de la Corte
Suprema de Estados Unidos, no cabe duda que PROMESA no ocupa campo alguno, sino
que sólo invalidará las leyes y reglamentos de Puerto Rico en tanto y en cuanto esas leyes
y reglamentos sean incompatibles con PROMESA u obstaculicen la ejecución e
implantación de PROMESA.
En fin, las órdenes de la Comisión para cuya ejecución se solicita el auxilio de este
Honorable Tribunal, no son –de forma alguna– incompatibles con disposición alguna de
PROMESA ni obstaculizan la ejecución de esa Ley.1 Por el contrario, el cumplimiento de
la AEE con estas órdenes facilitará que la Comisión, con su pericia en temas sobre el
1 La Sección 201(b)(1)(A)(i) de PROMESA, 48 U.S.C. § 2141, requiere que el Plan Fiscal de la AEE incluya
estimados de los ingresos y gastos de conformidad con los estándares de contabilidad acordados y que
estén en concordancia con la legislación aplicable. La Ley 57-2014 es legislación aplicable, ya que, a modo
de ejemplo, establece un mandato a la Comisión para que revise y apruebe las tarifas de la AEE y asegure
que éstas sean “justas y razonables” y que “garanticen el pago de la deuda de dicha corporación pública
con los bonistas”. En consideración a tales mandatos, a las inversiones que debe hacer la AEE para cumplir
con el Plan Integrado de Recursos aprobado por la Comisión, y así mejorar la calidad y confiabilidad del
servicio eléctrico, en el proceso de revisión tarifaria y de acuerdo con su pericia en la materia, la Comisión
establece el “revenue requirement” (i.e. necesidades de ingreso) de la AEE. Dicho de otro modo, en el
ejercicio de sus funciones bajo la Ley 57-2014 como el regulador de la industria eléctrica en Puerto Rico, es
la Comisión quien determina qué mejoras capitales son necesarias para que los consumidores en Puerto
Rico puedan recibir un servicio eléctrico confiable a precios razonables.
Al considerar este escenario, así como las disposiciones de PROMESA que enmarcan la autoridad de la JSF
en asuntos primordialmente fiscales, las disposiciones de la Ley 57-2014 que delegan amplios poderes a la
Comisión para regular y fiscalizar la industria eléctrica en Puerto Rico, y las disposiciones de PROMESA
que reconocen la existencia y el expertise de la Comisión bajo la Ley 57-2014, no cabe duda alguna de que
las órdenes para cuya ejecución la Comisión solicita el auxilio de este Honorable Tribunal no presentan
conflicto alguno con PROMESA ni con los poderes delegados a la JSF. Más aún cuando, según hemos
alertado, ninguna de las órdenes objeto de esta Demanda tiene impacto alguno sobre el fisco o estate de
la AEE, ni impide de forma alguna que la JSF ejerza sus poderes sobre la AEE. Sobre la autoridad
primordialmente fiscal de la JSF, véase Secciones 101(a) (“The purpose of the Oversight Board is to provide
a method for a covered territory to achieve fiscal responsibility and access to the capital markets.”);
104(i)(1)(B); 201(b)(1) (“A Fiscal Plan developed under this section shall, with respect to the territorial
government or covered territorial instrumentality, provide a method to achieve fiscal responsibility and
access to capital markets”); 201(b)(1)(A) al (J); 203(d)(2)(A) (“[W]ith respect to covered territorial
instrumentalities at the sole discretion of the Oversight Board—(A) make reductions in nondebt
expenditures to ensure that the actual quarterly revenues and expenses for the covered territorial
instrumentality are in compliance with the applicable certified Budget or, in the case of the fiscal year in
which the Oversight Board is established, the budget adopted by the Governor and the Legislature or the
covered territorial instrumentality, as applicable;”); 203(e); y 209 (“An Oversight Board shall terminate
upon certification by the Oversight Board that— (1) the applicable territorial government has adequate
access to short-term and long-term credit markets at reasonable interest rates to meet the borrowing needs
of the territorial government; and (2) for at least 4 consecutive fiscal years—(A) the territorial government
has developed its Budgets in accordance with modified accrual accounting standards; and (B) the
expenditures made by the territorial government during each fiscal year did not exceed the revenues of
the territorial government during that year, as determined in accordance with modified accrual
accounting standards.”)
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servicio y la industria eléctrica, colabore y asista a la Junta de Supervisión Fiscal en los
trabajos relacionados con el plan fiscal de la AEE y su reestructuración. Asimismo, las
medidas de prudencia y sana administración que promueve la Orden de 17 de noviembre
de 2017 sobre los contratos de la AEE son totalmente cónsonas con los objetivos y las
misiones de PROMESA.
POR TODO LO CUAL, la Comisión de Energía de Puerto Rico respetuosamente
solicita a este Honorable Tribunal que declare con lugar esta Demanda y, en su
consecuencia, ordene a la AEE a cumplir inmediatamente con las dos (2) órdenes de la
Comisión que se acompañan como Anejos I y II de esta Demanda, so pena de desacato
civil a su Director Ejecutivo y a cualquier otro funcionario responsable, y conceda
cualquier otro remedio que en derecho proceda y que este Honorable Tribunal entienda
adecuado conceder.
RESPETUOSAMENTE SOMETIDA.
En San Juan, Puerto Rico, el 5 de marzo de 2018.
f/ MARIANA I. HERNÁNDEZ GUTIÉRREZ

RUA Número 16721
Hernández-Gutiérrez Law, PSC
1519 Ponce de León Ave.
First Federal Bldg., Suites 713-715
San Juan, PR 00909
mhernandez@mihglaw.com
(787) 460-5715
www.mihglaw.com
17

COMMONWEALTH OF PUERTO RICO

PUERTO RICO ENERGY COMMISSION

IN RE: TEMPORARY OVERSIGHT MEASURES CASE NO.: CEPR-MI-2017-0008
RELATED TO THE PROCUREMENT AND
MANAGEMENT OF RESTORATION SERVICES SUBJECT: Order identifying and
BY PREPA implementing temporary oversight
measures.

ORDER

Through this Order, the Puerto Rico Energy Commission (“Commission”) identifies
and implements a set of measures, requirements and directives aimed at ensuring optimal
accountability, prudency and reasonability in the procurement and prospective
management of restoration support services by the Puerto Rico Electric Power Authority
(“PREPA”) in the wake of Hurricane María.
These measures are taken to ensure PREPA funds allocated towards the restoration
and recovery of the Island’s electric grid—whether these funds come ultimately from PREPA
customers, Commonwealth taxpayers or federal taxpayers—are spent effectively and
efficiently, producing measurable and quantifiable results. Another objective is to avoid
wasteful, fraudulent or abusive practices, by holding PREPA and its contractors and sub-
contractors accountable for the quality and efficiency of their work. The measures taken
herein are consistent with the Commission’s overall goal and statutory mandate of inducing
administrative and financial discipline to PREPA’s operations and culture; they are not
meant to duplicate any efforts by any other state or federal agency, but rather to support
such efforts.1 Finally, as detailed below, the measures and directives identified herein are
necessary and essential, in light of both recent and historical examples of doubtful PREPA
contracting determinations. They are especially necessary in light PREPA’s insistence, in
testimony and briefs presented in the rate case petition proceeding and in arguments to state
and federal courts, that the Commission has no power to review and prevent PREPA’s
spending before it occurs; but rather, once that spending has occurred, must approve rates
that reflect those costs, even if wasteful or imprudent.2

1 The Commission recognizes that the Fiscal Agency and Financial Advisory Authority (“AAFAF” for its Spanish
acronym) and the Financial Oversight and Management Board for Puerto Rico (“FOMB”) also may conduct some
type of contract review. Those reviews do not relieve the Commission of its duty under Act 57-2014 to ensure
that rates are just and reasonable generally, and do not include imprudent costs specifically. The Commission
is pleased to coordinate with both AFFAF and FOMB to avoid duplication of effort but it must and will carry out
its independent legal obligation. To that end, the Commission contacted representatives of AFFAF and FOMB
in May 2017, and FOMB again in November 2017, providing a systematic path to coordination. The Commission
is awaiting their response but in the meantime must and will use its unique expertise and experience with
PREPA, demonstrated in numerous prior orders—most importantly the Transition Charge, the Integrated
Resource Plan and Rate Case—to protect Puerto Rico’s citizens.

2 See, in general, Part Four of the Commission’s Final Resolution and Order, In Re: Review of Rates of the Puerto
Rico Electric Power Authority, CEPR-AP-2015-0001, January 10, 2017 at pp. 147-156 (“Resolution and Order
1

In ideal circumstances, the Commission would ask for comments on procedures to

ensure prudent, least-cost contracting, then craft requirements that align with PREPA’s
practical abilities. The present emergency does not allow for taking extra time with such
procedures. Accordingly, this Order goes into effect immediately. The Commission does,
however, invite PREPA to suggest alternative means of accomplishing the same objectives as
the ones furthered through this Order.
I. BACKGROUND
a. PREPA’s History of Imprudent Procurement and Contracting

On October 17, 2017, PREPA signed a contract with Whitefish Energy Holdings, LLC
(“Whitefish”) for the provision of certain services related to the restoration and recovery of
PREPA’s electric grid. Less than two weeks later, amid a myriad of controversies, PREPA
announced its intention to cancel the Whitefish contract on October 29, 2017.3 In the 12-day
period in between, PREPA incurred at least $20.7 million of costs associated with this
contract.4 PREPA entered into the Whitefish contract without notifying or seeking prior
approval from the Commission.
Whitefish is not the only instance in which PREPA’s actions with regards to the
procurement, contracting and management of contracted services have shown to lack the
level of discipline and scrutiny expected from a public utility and required by Act 57-2014.5
Throughout many of its proceedings, the Commission or its consultants have raised concerns
regarding the terms and conditions agreed to by PREPA when entering into contracts (and
whether such terms and conditions are in PREPA’s and ratepayer’s best interest), as well as
the lack of performance metrics to ensure the quality of the work performed by the
contractor. Examples include, but are not limited to, the quality of the products prepared by
PREPA’s contractors Siements PTI and Navigant Consulting, Inc. (submitted as part of

on PREPA’s Rates”) and Part II of the Commission’s Final Resolution addressing PREPA’s Motion for
Reconsideration, CEPR-AP-2015-0001, March 8, 2017 at pp. 14-34. See also, PREPA’s Verified Motion for
Reconsideration of Provisions of the Final Resolution and Order, filed January 30, 2017, and PREPA’s Appeal to
the Puerto Rico Court of Appeals challenging the legality of the Commission’s determinations, Case No.
KLRA2017-0444, consolidated with Case No. KLRA2017-0446. Of special concern is that PREPA’s attempts at
freeing itself from required oversight have been supported by both AAFAF and the FOMB. See Notice of
Removal, Case No. 17-04780 (LTS), Adversary Case No. 17-00256 (Docket Entry No. 279).

3 While PREPA announced its intention to cancel the Whitefish contract on October 29, 2017, Whitefish would
continue providing services until certain milestones were completed. As of the date of this Order, Whitefish
continues to provide services to PREPA.

4 http://cb.pr/whitefish-no-se-va-hasta-que-entregue-la-linea-de-aguirre-y-aguas-buenas/. This amount is
expected to increase, given, as noted before, that Whitefish would continue providing services to PREPA until
the completion of certain milestones.

5 The Puerto Rico Energy Transformation and RELIEF Act, as amended.
2

PREPA’s IRP and Petition for Rate Review),6 PREPA’s maintenance contracts with
Mitsubishi-Hitachi and Alstom Caribe,7 PREPA’s multiple power purchase agreements with
renewable energy providers,8 and PREPA’s power purchase agreement with EcoEléctrica.9
Appendix A to this Order provides detailed insight into these and other examples. As the
aforementioned list shows, these concerns are not limited to contracts related to a specific
area of PREPA’s operations, but rather span multiple areas of PREPA’s business.

While the Commission has not made a finding regarding the prudency of these
actions, they provide an insight into the type of decisions within PREPA that fuel the
Commission’s concerns. Particularly, the Commission is concerned that PREPA’s
management culture, a product of its 70-year long self-regulated monopoly status, is
unwilling or unable to obtaining the type of concessions from its contractors generally
sought after by investor-owned utilities worried about their bottom line.

b. The case for Commission oversight

In order to be financially and operationally sustainable, a utility’s rates must be
sufficient to recover all of its costs, provided such costs are deemed by the regulator to be
prudent. In the traditional setting of an investor-owned utility, a regulator is able to induce
prudent spending and performance by preventing a utility from recovering through its rates
costs which are deemed by the regulator to be the result of imprudent actions—those costs
are thus paid for by the utility’s shareholders, not ratepayers. This after-the-fact review is
known as cost disallowance. The certainty that imprudent actions will result in lost revenues
aligns the interests of shareholders and ratepayers, leading to better performance.

PREPA’s case is different. PREPA is a government-owned, non-profit utility; it has no
shareholders. Because it has no shareholders, all of its costs must be recovered through its
rates, which means that ratepayers are entirely responsible for the costs incurred by PREPA.
Once a cost is incurred, there is no practical choice but to reflect those costs in PREPA’s rates.
If the Commission were to prevent PREPA from recovering a cost deemed as imprudent,
PREPA would operate at a deficit, or would have to cut other necessary spending. Neither
result is consistent with a financially healthy and sustainable utility providing reliable
service. This certainty of recovery of costs reduces management’s incentives to seek during
negotiations concessions from contractors that would reduce PREPA’s overall costs and
exposure to risks and, ultimately, benefit PREPA’s ratepayers. Before-the-fact review by the

6 See, in general, the Part IV(A)(3) of the Final Resolution and Order, In Re: Integrated Resource Plan for the
Puerto Rico Electric Power Authority, Case No. CEPR-AP-2015-0002, September 26, 2016 (“Resolution and
Order on PREPA’s IRP”) and Parts Two, Three and Four of the Commission’s Resolution and Order on PREPA’s
Rates.

7 Resolution and Order on PREPA’s Rates at ¶208 and ¶¶211 – 218, respectively.

8 Resolution and Order on PREPA’s IRP, at ¶¶171-188.

9 Resolution and Order on PREPA’s Rates, at ¶152.
3

Commission is therefore a necessary action to reduce customers’ exposure to imprudent

costs.

The Commission recognizes that PREPA’s key personnel are deeply involved in the
restoration effort, as well as efforts to renegotiate debt and secure federal resources. But it
is precisely at such times of crisis that discipline in spending can decrease—especially in a
company whose pre-existing discipline is suboptimal. Lack of discipline and oversight can
delay restoration services by reducing the effectiveness and efficiency with which
emergency resources are allocated towards emergency response and restoration efforts.

The temporary measures and directives identified in Part II of this Order are
specifically designed to ensure discipline during the current emergency and the period
immediately after. While the Commission will subject PREPA to rigorous oversight, the
measures adopted herein are also designed to avoid unnecessary burdens which may delay
PREPA’s restoration efforts. Requiring PREPA and its contractors to account for their
activities and costs is a small matter compared to the benefits in terms of certainty,
transparency and accountability. However, the Commission invites PREPA to suggest
alternative means of accomplishing the level of accountability that these requirements are
designed to achieve.
c. The Commission’s Authority to Require Review

Act 57-2014 grants the Commission express and unambiguous authority to review
PREPA’s operations and implement the regulatory actions necessary to “guarantee the
capacity, reliability, safety, efficiency and reasonability of electricity rate [in] Puerto Rico.”10
Accordingly, the Commission is empowered to address "all types of operations, processes
and mandates pertaining to the efficiency of the energy sector of the Island.”11 This broad
authority is further strengthened by the closing sentence of Section 6.3 of Act 57-2014, which
states that the Commission shall have all those “implicit and incidental powers that are
pertinent and necessary” to comply with its mandates. Equally vital is the Commission
unquestionable authority to “require and gather [from PREPA and certified energy
companies] any pertinent or necessary information to properly carry out its powers and
duties.”12
II. REQUIREMENT FOR CONTRACT REVIEW

The foregoing factors highlight the need to establish several requirements for
PREPA’s contracting and spending under such contracts. These requirements will remain in
effect for a period of six months, beginning on the date issuance of this Order, unless the
Commission determines otherwise through resolution or order.

10 See sub-section (c) of Section 6.3 of Act 57-2014.

11 See Statement of Motives of Act 57-2014 at ¶20.

12 See sub-section (l) of Section 6.3 of Act 57-2014.
4

a. Required Contract Provisions

For any contract or amendment to an existing contract related to the procurement of
energy, grid services, and fuel13 for an aggregate value of at least $10 million; contracts for
infrastructure work14 for an aggregate value of at least $1 million; and contracts for
professional services15 for an aggregate value of at least $250,000, executed by PREPA after
the issuance of this Order, the Commission ORDERS PREPA to include the following
provisions:
(1) A clause stating that the contract will not enter into force unless PREPA has received
written approval from the Commission or unless five business days have passed after
PREPA’s submission of the contract to the Commission with no action from the
Commission. The Commission, on notice to PREPA within the five-day period
mentioned above, may extend such period for unusually complex contracts, provided
such period shall never exceed 30 calendar days from the date of submission of the
contract to the Commission.
(2) A clause stating that, if the Commission finds, or has reasonable belief, that the work
being performed is defective, inconsistent with the terms and conditions of the
contract, with applicable legal and regulatory requirements or with any prior
Commission order or directive, the Commission may order PREPA to direct a
contractor to immediately cease the provision of services until the Commission states
otherwise, or until 15 business days from the date the Commission’s stop-order was
issued if the Commission fails to take any action within such timeframe. After the
issuance of a stop-order, and after granting PREPA and the contractor reasonable
opportunity to be heard, the Commission may determine to authorize continuation of
services, require corrective measures to be taken, including contract amendments, or
require the termination of the contract.

13 The Commission intends the term “energy, grid services, and fuel” to refer to provision of energy to be
consumed by PREPA or sold by PREPA to customers; to the commitment to make generating capacity available
when needed (commonly referred to as “capacity services”); to credits associated with production of “green”
or renewable energy as defined by Act 83-2010; to administration of energy efficiency, demand response, and
other demand-side management programs; to the services necessary to support the transmission of electric
power to customers, including but not limited to frequency and voltage regulation, operating and spinning
reserves, startup-related costs, black start capabilities, and flexible ramping capabilities; to purchases of
combustible fuels; and to tolling, transportation, or other delivery payments associated with fuel purchases.

14 The Commission intends the term “infrastructure work” to refer to materials purchased for and labor applied
to PREPA’s physical assets. These assets include, but are not limited to, generation, transmission, distribution,
fuel delivery, information technology, warehousing, and transportation infrastructure and assets.

15 The Commission intends the term “professional services” to refer to work for hire that has no impact on
PREPA’s physical assets, including but not limited to: legal services; advisory services; modeling, potential
studies, and other analyses; engineering and design work, and others.

5

(3) A clear, detailed scope of the work and activities included in the contract.
(4) A total budget associated with the described scope, provided that PREPA may seek
from the Commission a modification of this requirement in extraordinary
circumstances.
(5) An estimated spending schedule associated with the described scope and budget,
with both monthly spending estimates and clear and objective milestones.16 Spending
schedules must include spending estimates associated with those milestones.
(6) A schedule of all labor, material, and/or service rates associated with the contract.
(7) A scope and budget amendment process, which shall include a requirement to
provide advanced notice, with no less than 30 calendar days in advance, to the
Commission, of any proposed amendment to the contract scope, budget and amount,
provided PREPA may seek an exception to the 30-day requirement (but not to the
advance notice requirement) in extraordinary circumstances.
(8) Require invoices to be submitted to PREPA on, at least, a monthly basis in electronic
format. Invoices must contain the amount invoiced under the contract since the last
invoice and the total amount invoiced since the contract’s execution, as well as a
description of the work completed and being invoiced and the total amount of
contract funds remaining after deducting the amount included in the most recent
invoice.
(9) A requirement wherein PREPA’s contractor must submit, 10 calendar days in advance
of a new month, monthly budget updates, with milestones accomplished and
estimated spending and work to be completed in the upcoming month.
(10) A clear description of performance guarantees in the contract, including a
requirement that work performed under the contract will conform to all applicable
legal and regulatory requirements. Contracts must include a certification from the
contractor that they are aware of all legal and regulatory requirements and that,
except for unforeseen or extraordinary circumstances, the contracted budget is
sufficient to meet these requirements.
(11) A clear description of risk-sharing provisions, including provisions describing the
allocation of responsibility for costs between PREPA and PREPA’s contractor in the
event of error on PREPA’s part, error on the part of PREPA’s counterparty, shared
error, and the occasion of circumstances beyond the control of PREPA and PREPA’s
counterparty.

16 In the case of contracts for energy, grid services, and fuel, “milestones” means delivery of such energy, grid
services, or fuel. The requirement for spending estimates associated with delivery of milestones does not apply
to such contracts. However, the schedule of labor, material, and/or service rates must include a rate for the
delivery of energy (in MWh), capacity (in MW), fuel (in MMBTU and physical units), or other services (in the
appropriate units).
6

b. Contract and Invoice Oversight

For any contracts contemplated in Part II.a of this Order, the Commission ORDERS
the following:
(1) PREPA shall submit to the Commission contracts for review within one week of
approval of contracting language by the contracting officer at PREPA. Contract
submission must include at least: the contract itself; all appendices and attachments;
a total budget estimate; a spending and milestone schedule; and a schedule of rates
for labor, materials and services. The PREPA contracting officer who approved the
contract shall certify to the Commission that the contract complies with the
requirements established in Part II.a of this Order. None of the materials submitted
by PREPA may contain any redactions whatsoever; however, PREPA may request
confidential treatment of those documents, or portions thereof, it deems confidential,
pursuant to Commission Order CEPR-MI-2016-0009, as amended.
(2) PREPA shall designate and identify the individual within PREPA responsible for
reviewing invoices and contractor performance for each contract and whom shall act
as liaison between PREPA and the Commission on matters related to the contracts
under their supervision (“PREPA contract manager”). PREPA shall submit the name,
title, e-mail address, and phone number of this individual to the Commission
concurrently with each contract.
(3) PREPA shall notify the Commission within 7 calendar days of any change to the
identity or contact information of the PREPA contract manager.
(4) PREPA shall keep and maintain all documents related to each contract, including all
those documents identified in sub-section (1) above, in a secure Internet server, to
which server the Commission shall have access immediately upon request.
(5) Immediately upon receipt of an invoice or budget update, and of approval of such
invoices, the PREPA contract manager shall upload all relevant documentation to the
secure Internet server.
(6) Upon request from the Commission, the PREPA contract manager shall schedule a
briefing call or meeting, at a mutually convenient time, with PREPA officials and
contractor representatives familiar with the contract under review.
(7) Prior to the execution of any proposed amendment to the contract amount or scope
of work of the services to be performed, the PREPA contract manager shall notify the
Commission the intent, scope and nature of the proposed amendment no less than 30
calendar days prior to the intended date of execution of the proposed amendment.
The proposed amendment shall be deemed to have been approved if the Commission
fails to make a determination with regards to the proposed amendment within the
30-day period established before. PREPA may seek an exception to the 30-day
7

Appendix I – Excerpts from Commission orders and supporting documents in

which the Commission or its consultants have expressed concerns
regarding PREPA actions and contracting policies.
(1) Renewables contracts
"In [...] existing contracts, PREPA pays a price for energy, plus a per-megawatt-
hour premium that PREPA refers to as "renewable energy credit" (REC). [...]
The contractual energy price (i.e., the price without the so-called REC)
sufficiently covers the prudent costs of constructing and financing the projects
plus a reasonable profit to their owners. The REC premium is therefore in
excess of that reasonable profit. [...] [T]here is no evidentiary basis for
assuming that a premium, such as that built into PREPA's existing contracts,
will be required in future contracts, either by law or by competitive forces.
Moreover, even if it were appropriate to assume that PREPA would pay for
RECs, PREPA's REC price exceeds that of other United States jurisdictions,
despite the absence of a REC market in Puerto Rico."1

"PREPA has been signing contracts for utility-scale solar facilities at prices
comparable to the full retail rates for some classes."2
"The renewable contracts present uncertainty—not due to their prices (which
are contractual) but due to their output, because their online dates are difficult
to predict. Embodying this uncertainty is a 21% drop ($30 million), after less
than six months, in PREPA's expectations regarding spending on renewable
energy contracts."3
"Regarding the prices in existing renewable contracts, the Commission is not
suggesting that high prices in existing renewable contracts reflect imprudent
actions by PREPA or excess costs to consumers. Windmar argues that
contracts signed in 2010-2012 preceded declines in renewable energy
equipment, and occurred at a time when high oil prices made such contracts
attractive to PREPA. Our point is not that PREPA necessarily should seek to
terminate contracts, but to examine whether renegotiations can lower prices
and also make operational dates more certain."4
(2) Siemens PTI
"PREPA's compliance with our IRP Rule was unsatisfactory. [...] Together with its
chief consultant, Siemens Power Technologies International ("Siemens PTI" or

1 Resolution and Order on PREPA’s IRP at ¶¶179-180.

2 Expert Report of Paul Chernick, Docket CEPR-AP-2015-0001, at p. 115, fn. 122.

3 Resolution and Order on PREPA’s Rates at ¶161.

4 Id. at fn. 133.
1

"Siemens"), PREPA disregarded our rules, failed to use standard planning

techniques, delayed the production of required information, and displayed
insufficient appreciation of the potential for energy efficiency and demand
response. These behaviors led PREPA and Siemens to reach conclusions that
over-emphasized costly construction, while under-emphasizing the roles of
renewable energy technologies and consumer behavior as ways to achieve the
energy independence envisioned by Act 57. A related result of this behavior was
a proceeding that took many more months, and cost the Commission and
consumers many more dollars, than should have been necessary."5
"The PREPA IRP was written and constructed almost entirely by Siemens PTI. [...]
We infer from these facts, as well as from explicit discussions in the IRP and
discovery responses, that numerous decisions and assumptions in the IRP were
informed by Siemens rather than PREPA.6
"Siemens PTI was familiar with PREPA's system because it had provided
transmission planning and renewable integration consulting to PREPA in the past.
[…] Siemens PTI is owned by Siemens AG, which is also the parent company of a
manufacturer of generating units. A key purpose of an IRP is to determine the
need for and type of generating units. The purpose of a least-cost resource
planning process is to minimize system costs over the long term. The process
must be impartial, relative to the specific resources or manufacturers of
generation or demand resources. The typical approach, therefore, describes
resource options in generic terms only. While the characteristics of generic
resources should be informed by real industry data, a choice of specific
manufacturers or project specifications is typically considered only after generic
resource choices have been selected; i.e., after the IRP process is concluded.
Where the consultant conducting resource planning has a business interest in
resource selection, there is risk of bias, intentional or unintentional. That risk
rises when the modeling technique used by the consultant involves subjectivity.
Given that risk, it is especially important for the utility that hires the consultant to
oversee the consultant and inject its own independent judgments. Utility
deference to a consultant with a potential for bias is not a prudent practice.7
"In this IRP, Siemens was involved in the selection of both methodology and
resources – a role especially influential given PREPA's lack of IRP experience. And
its analysis did not speak solely in terms of generic units. Rather, it described
specific units manufactured by Siemens, along with those of several other
companies. PREPA conducted a screening study that included turbines from
seven manufacturers, including Alstom, GE, Hitachi, MHI, Rolls-Royce, and
Wärtsila, in addition to Siemens. But the thermal resource selection process

5 Final Resolution and Order on PREPA’s IRP at ¶ 13.

6 Id. at ¶ 109.

7 Id. at ¶ 110.
2

conducted by Siemens PTI reviewed closely only three options: one from GE and
two from Siemens technologies.8
"We acknowledge that Siemens's witness asserted that the consulting arm of
Siemens was "independent" of the manufacturing arm. However, both arms are
commonly owned. At a time of deep citizen concern about PREPA's rates and
performance, perceptions of bias or favoritism matter. If and when PREPA seeks
to purchase new generation equipment, the Commission will require, and will
ensure, that PREPA's process for procurement is competitive and objective."9
(3) Navigant Consulting
"[M]uch of the crucial work that Navigant has done for PREPA in [the Rate Case]
proceeding has been below industry standards. It has caused consultants to incur
extra costs to identify errors, get clarification, seek documentary support, and
sometimes even to understand the basic outlines of a proposal. Problems include
the errors in the average-and-excess computations and the analysis of peak loads.
Navigant witnesses have also made claims in testimony and discovery responses
that they have been unable to support (such as the claimed benefits of the
unbundled rates, or the response that billing determinants were decreased to
reflect the residential fuel subsidy). The witnesses’ have frequently been unable
to identify potential solutions, in such issues as whether coincident peak
contributions could be computed in the same manner as non-coincident peaks, or
whether multiple monthly peaks could be used for allocating generation costs for
a utility in which every month contributes to capacity requirements. They took
inconsistent positions between the cost-of-service study and rate design (on such
issues as seasonality), and sometimes provided misleading information (such as
the suggestion that PREPA had actual monthly NCP data by tariff code). 10
"With regard to cost allocation and rate design, PREPA, the Commission and the
public interest have been poorly served by PREPA’s consultants. PREPA should
take steps to procure more competent assistance from Navigant or other firms, or
bring more of this expertise in-house."11
(4) EcoEléctrica12
"The EcoEléctrica contract [...] requires an "excess energy payment" for energy
required above a 76% capacity factor. EcoEléctrica sets the usage level associated
with the 76% capacity factor monthly and sets the excess energy rate weekly.

8 Id. at ¶ 111.

9 Id. at ¶ 112.

10 Chernick Expert Report at § IX.

11 Id.

12 Resolution and Order on PREPA’s Rates at ¶¶ 150-153.
3

These factors make it difficult for PREPA to predict its payments to

EcoEléctrica."13
(5) Mistubishi-Hitachi14 and Alstom Caribe15
"The San Juan [combined cycle] contract with [Mitsubishi-Hitachi] provides for
layers of inspections at multi-year intervals, and can be expected to provide
ongoing service for several years. While we do not have evidence that the
maintenance contract at San Juan is not currently effective, the contract lacks any
form of performance incentive or metrics. The contract appears to insulate the
contractor from performance failures as well. While the terms of the contract are
considered proprietary, the penalties imposed on the contractor for outage delays
do not appear commensurate with the cost of those delays on PREPA."16
"While the contract requires that Alstom provide a 'permanent on-site operations
and maintenance advisor,' and provides a 'technical field advisor' for 'A' and 'B'
inspections, the contract does not actually specify the role of the technical field
advisor, who leads the inspection and refurbishment process; and, most
importantly, who bears responsibility for correctly executed inspections,
maintenance, and replacement.17

"The contract limits Alstom's liability for PREPA staff negligence or deficiencies.
Alstom included a contract provision 'exclud[ing] any and all liquidated damages
for outage schedule delays, unless such delay is 100% attributable to a negligent
act or omission of ALSTOM (i.e., ALSTOM fails to deliver a correct part or make
available the required personnel and such late delivery/performance causes an
outage delay).18

"Since PREPA did not provide a record of forced outages at Cambalache, including
any reasons for outages or delays, the Commission's consultants were unable to
evaluate Alstom's performance. There was a two-year outage at Cambalache
arising from a control system failure that caused an explosion in the turbine.19

13 Id. at ¶152.

14 Id. at ¶208.

15 Id. at ¶¶211-218.

16 Expert Report of Jeremy Fisher and Ariel Horowitz, Docket CEPR-AP-2015-0001 at § V(C)(6)(b)(ii).

17 Resolution and Order on PREPA’s Rates at ¶215.

18 Id. at ¶216.

19 Id. at ¶217.
4

"[T]he Cambalache contract has no performance incentives or penalties to keep

the units in operation or in a state of good repair. Alstom's liabilities are limited
to a small fraction of the cost of the contract."20

"The contract recognizes that Alstom relies on PREPA staff for much of the
execution of maintenance, and specifically seeks to reduce Alstom’s liability for
PREPA staff negligence or deficiencies."21

(6) Excelerate and Aguirre Offshore Gasport, LLC22
"The Time Charter agreement, a contract to hire Excelerate’s FRSU for fifteen
years, requires a daily fixed payment of $111,500, or $40.7 million per year, and
includes substantial liquidated damages to withdraw from the agreement once
authorized. The contract contains a “hell or high water” provision, requiring that
PREPA pay for the hire of the FRSU “without regard to (i) the amount of LNG
delivered to EE for Regasification, (ii) whether or not LNG deliveries are actually
made by PREPA or (iii) whether or not PREPA is able to receive or requires the
use of Natural Gas from or beyond the Shore-side Natural Gas Delivery Point.” This
contract represents a substantial—and nearly irrevocable—investment that is
otherwise not disclosed by PREPA in filing this rate case."23

The Commission’s Final Resolution and Order on PREPA’s IRP and Final Resolution and
Order on PREPA’s Rates, as well as the expert reports filed by the Commission’s consultants,
are available in full at the Commission website, energia.pr.gov or upon request to the
Commission Clerk’s Office at 787-523-6262.

20 Id. at ¶218.

21 Fisher and Horowitz Expert Report at § V(C)(7)(a)(i).

22 Id. at § V(D)(3).

23 Id. at § V(D)(3)(b)(ii).
5
ANEJO II
Cu a n t ia : $450,000.00
Cu en t a N u m .: 01-4019-92306-550-123 y
01-4019-93013-550-118
"s -
2018-P 00094 ^^
PUERTO RICO ELECTRIC POWER AUTHORITY
P ROF E SSIONAL SE RVICE S CONTRACT
AP P E AR
AS F IRST P ARTY: Th e P u er t o Rico E lect r ic P ower Au t h or it y, h er ein a ft er r efer r ed t o
a s "P RE P A", a pu blic cor por a t ion a n d gover n m en t in st r u m en t a lit y of t h e Com m on wea lt h
of P u er t o Rico, cr ea t ed by Act 83 of Ma y 2, 1942, a s a m en ded, r epr esen t ed in t h is a ct
by it s E xecu t ive Dir ect or , J u st o Lu is Gon za lez Tor r es, of lega l a ge, m a r r ied,
pr ofession a l en gin eer , a n d r esiden t of J u a n a Dfa z, P u er t o Rico.— ——————————
AS SE CON D P ARTY: BDO P u er t o Rico, P .S.C., h er ein a ft er r efer r ed t o a s "BDO", a
cor por a t ion or ga n ized a n d r egist er ed t o do bu sin ess in P u er t o Rico, r epr esen t ed in t h is
a ct by it s P a r t n er , m ist er Wa lla ce Rodr igu ez P a r issi, of lega l a ge, sin gle, a n d r esiden t of
Tr u jilt o Alt o, P u er t o Rico, du ly a u t h or ized t o a ppea r in r epr esen t a t ion of BDO by
Res olu t ion d a t ed N oven ber 14, _ 2017.-
Bot h P RE P A a n d BDO a r e h er ein in dividu a ls r efer r ed t o a s a "P a r t y" a n d collect ively
r efer r ed t o a s t h e "pa r t ies".-——————————————————————————
WITNESSETH
WH E RE AS, t h is Con t r a ct (t oget h er wit h a ll a t t a ch m en t s h er et o, t h is "Con t r a ct ") con fir m s
t h e en ga gem en t by P RE P A of BDO t o per for m t h e Accou n t in g Ser vices in t h e
Dir ect or a t e of F in a n ce (a s defin ed in P a r t 2 h er eof) a n d t h e Advisor y Ser vices (a s
defin ed in P a r t 3 h er eof). E xcept wit h r espect t o t h e u se of ca pit a lized defin ed t er m s or
a s ot h er wise expr essly pr ovided h er ein , P a r t 1 of t h is Con t r a ct sh a ll a pply t o t h e
Accou n t in g Ser vices a n d Advisor y Ser vices; P a r t 2 sh a ll a pply on ly t o Accou n t in g

'• Or ? -.
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Accou n t in g a n d Advisor y Ser vices BDO P u er t o Rico, P .S.C.
P a ge 2
^
Ser vices a n d P a r t 3 sh a ll a pply on ly t o t h e Advisor y Ser vices. Th e Accou n t in g Sen /ices
a n d Advisor y Ser vices collect ively sh a ll con st it u t e t h e "Ser vices".————————
WH E RE AS, BDO is willin g a n d a ble t o r en der su ch ser vices t o P RE P A.
WH E RE AS, bein g ea ch pa r t y em power ed t o en t er in t o t h is Con t r a ct a n d per for m t h eir
obliga t ion s h er eu n der in con sider a t ion of t h y pr em ises a n d t h e m u t u a l coven a n t s
con t a in ed h er ein , P RE P A a n d BDO a gr ee in t o t h is Con t r a ct u n der t h e followin g;-———
TERMS AND CONDITIONS

P a r t I. Gen er a l Ter m s a n d Con dit ion s for t h e Ser vices
Ar t icle 1. Ter m of Ser vices
Th is Con t r a ct sh a ll be in effect u n t il F ebr u a r y 28, 2018. BDO expr essly r ecogn izes t h a t
in t h e even t t h a t t h er e a r e n o fu n ds bu dget ed or pr ovided for t h e pa ym en t of ser vices
con t r a ct ed h er ein , P RE P A sh a ll h a ve t h e r igh t t o t er m in a t e t h e Con t r a ct , a n d BDO sh a ll
h a ve n o r igh t t o be pa id except for t h e ser vices a lr ea dy per for m ed a n d r en der ed t o
Ar t icle 2. Ter m in a t ion
2.1 N ot wit h st a n din g a n yt h in g t o t h e con t r a r y in t h is Con t r a ct r ega r din g it s t er m ,
P RE P A m a y, a t a n y m om en t a n d for a n y r ea son , t er m in a t e t h is Con t r a ct for it s
con ven ien ce a ft er givin g BDO n ot less t h a n t h ir t y (30) con secu t ive da ys pr ior
wr it t en n ot ice. In t h e even t of P RE P A's t er m in a t ion for con ven ien ce a s descr ibed
a bove, BDO sh a ll r ecover fr om P RE P A, a s com plet e set t lem en t for su ch
t er m in a t ion , t h e pa ym en t for a n y wor k per for m ed by BDO pr ior t o n ot ice of

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P a ge 3
t er m in a t ion by P RE P A. BDO sh a ll pr ovide a ll eviden ce t o P RE P A's a ppr ova l of
fin a l in voice.-
2.2 P RE P A m a y t er m in a t e t h is Con t r a ct if BDO defa u lt s in it s per for m a n ce of a n y
m a t er ia l obliga t ion u n der t h is Con t r a ct , a n d BDO does n ot cu r e su ch defa u lt in
per for m a n ce wit h in a per iod of seven (7) ca len da r da ys a ft er BDO's r eceipt of su ch
wr it t en n ot ice of defa u lt fr om P RE P A, u n less su ch defa u lt is n ot r ea son a bly
ca pa ble of bein g cu r ed wit h in seven (7) da ys, in wh ich ca se su ch cu r e per iod sh a ll
be ext en ded a s r ea son a bly n ecessa r y, bu t n ot m or e t h a n seven (7) a ddit ion a l
da ys. Th e exer cise of it s r igh t t o t er m in a t e, ca n cel or r escin d t h is Con t r a ct sh a ll
n ot be u n der st ood a s a wa iver by P RE P A t o a n y ot h er r em edy it m a y h a ve u n der
t h is Con t r a ct or u n der t h e la w for dela ys or br ea ch in cu r r ed by BDO in t h e
per for m a n ce of it s obliga t ion s u n der t h is Con t r a ct . BDO sh a ll h a ve n o fu r t h er r igh t
t o com pen sa t ion except for wh a t h a s been a ccr u ed for ser vices r en der ed u n der
t h e Con t r a ct u n t il sa id effect ive t er m in a t ion . BDO sh a ll h a ve n o fu r t h er r igh t t o
com pen sa t ion except for wh a t h a s been a ccr u ed for ser vices r en der ed u n der t h e
Con t r a ct u n t il sa id effect ive t er m in a t ion .———————————————————
2.3 BDO sh a ll h a ve a r ecipr oca l r igh t t o t er m in a t e t h is Con t r a ct u pon t h e sa m e t er m s
a va ila ble t o P RE P A, a s descr ibed h er ein , so lon g a s su ch t er m in a t ion is con sist en t
wit h t h e et h ica l obliga t ion s a pplica ble t o BDO u n der t h e cir cu m st a n ces.—————
2.4 Th e exer cise by eit h er P a r t y of it s r igh t t o t er m in a t e h er eu n der sh a ll n ot be
in t er pr et ed or con st r u ed a s a wa iver or r elin qu ish m en t by t h a t P a r t y of a n y ot h er
r igh t or r em edy it m a y h a ve u n der t h is Con t r a ct or u n der t h e la w.-

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Accou n t in g a n d Ad vis or y S er vices BDO P u er t o Rico, P .S .C, '"' <^
P a ge 4
Ar t icle 3. In voices
3.1 BDO sh a ll pr esen t a r ea son a bly it em ized list of r em a in in g billa ble wor k t h a t is in
pr ogr ess u n der t h e Con t r a ct . All in voices su bm it t ed by BDO sh a ll be su bject t o
P RE P A's r ea son a ble a ppr ova l befor e bein g pa id. Th e pa ym en t s sh a ll be don e
wit h in sixt y (30) da ys a ft er P RE P A's Tr ea su r y Division a ppr ova l of t h e
cor r espon din g in voice.-
3.2 BDO sh a ll n ot ify pr om pt ly t o P RE P A wh en t h e billin g u n der t h e Con t r a ct a m ou n t s
seven t y-five per cen t (75%) of t h e m a xim u m a m ou n t u n der t h e Con t r a ct . On ce t h is
n ot ifica t ion h a s been issu ed BDO in coor din a t ion wit h P RE P A will en su r e t h a t n o
ser vices will be r en der ed in excess of t h e a gr eem en t a m ou n t . On ce t h is
n ot ifica t ion h a s been issu ed BDO in coor din a t ion wit h P RE P A will en su r e t h a t n o
ser vices will be r en der ed in excess of t h e a gr eem en t a m ou n t . In a ddit ion , BDO
sh a ll pr esen t a n et er n ized list of t h e r em a in in g billa ble wor k s u n der t h e Con t r a ct .—
3.3 P a ym en t s per for m ed u n der t h is Con t r a ct r ela t ed t o Accou n t in g Ser vices will be
ch a r ged t o t h e a ccou n t n u m ber 01-4019-92306-550-123, pa ym en t s r ela t ed t o
Advisor y Ser vices will be ch a r ged t o a ccou n t n u m ber 01-4019-93013-550-118.
3.4 All in voices su bm it t ed by BDO sh a ll in clu de t h e followin g Cer t ifica t ion in or der t o
pr oceed wit h it s pa ym en t . Th is is a n essen t ia l r equ ir em en t a n d t h ose in voices
su bm it t ed wit h ou t t h is Cer t ifica t ion , will n ot be pr ocessed for pa ym en t .—————-
No In t er est Cer t ifica t ion :

':w ^ :..
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^ .^ ,.
Accou n t in g a n d Ad vis or y S e r vice s B D O P u e r t o R ico, P .S .C . '^ 4 ^
P a g e 5 '^ '
U n der pen a lt y of a bsolu t e n u llit y, I h er eby cer t ify t h a t n o em ployee, officia l or
dir ect or of P RE P A is a pa r t y or h a s a n y in t er est in t h e specific pr ofit s or ben efit s t o
be obt a in ed u n der t h is Con t r a ct , or if a n y em ployee, officia l or dir ect or of P RE P A
h a s a n y in t er est in t h e pr ofit s or ben efit s u n der t h is Con t r a ct a wa iver h a s been
pr eviou sly obt a in ed. I, a lso cer t ify t h a t t h e on ly con sider a t ion t o pr ovide t h e
ser vices u n der t h is Con t r a ct is t h e pa ym en t a gr eed wit h P RE P A's a u t h or ized
r epr esen t a t ive.
Th e t ot a l a m ou n t of t h is in voice is fa ir a n d cor r ect . Th e ser vices wer e pr ovided
a n d n o p a ym e n t h a s b e e n r e ce ive d for s a id con ce p t , i
Sign a t u r e of BDO's a u t h or ized r epr esen t a t ive
Ar t icle 4. Com plia n ce wit h Act of Oct ober 30,1975, N o. 18, a s a m en ded
P RE P A sh a ll m a ke a n y a n d a ll filin gs a n d cer t ifica t ion s a s m a y be r equ ir ed of P RE P A
by la w or a dm in ist r a t ive r egu la t ion for t h is Con t r a ct t o becom e effect ive a n d
en for cea ble. Th e dem a n d of t h e obliga t ion s of eit h er P a r t y u n der t h is Con t r a ct will be
su bject t o t h e filin g of t h e Con t r a ct a t t h e Office of t h e Com pt r oller of t h e
Com m on wea lt h of P u er t o Rico, in com plia n ce wit h t h e Act of Oct ober 30, 1975, N o. 18,
a s a m en ded. All su ch filin gs a n d cer t ifica t ion s sh a ll be m a de wit h in t h e t im e per iods
specified t h er e for a n d P RE P A sh a ll n ot ify BDO a s soon a s su ch filin gs a n d
cer t ifica t ion s a r e m a de.————————————————————————————
Ar t icle 5. In depen den t Con t r a ct or

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P a ge 6
^
BDO sh a ll be con sider ed a s a n in depen den t con t r a ct or for a ll m a t er ia l pu r poses u n der
t h is Con t r a ct , a n d a ll per son s en ga ged or con t r a ct ed by BDO for t h e per for m a n ce of it s
obliga t ion s h er ein , sh a ll be con sider ed a s it s pa r t n er s, em ployees or a gen t s or t h ose of
it s su bcon t r a ct or s, a n d n ot a s pa r t n er s, em ployees or a gen t s of P RE P A. In
con sequ en ce, BDO is n ot en t it led t o a n y fr in ge ben efit s, su ch a s, bu t n ot lim it ed t o
va ca t ion , sick lea ve, a n d ot h er . -
Ar t icle 6. Respon sibilit y for Da m a ges
Th e a ppea r in g P a r t ies a gr ee t h a t t h eir r espon sibilit ies for da m a ges u n der t h is Con t r a ct
will be gover n ed by t h e P u er t o Rico Civil Code a n d it s ca se la w, a s dict a t ed by t h e
Su pr em e Cou r t of P u er t o Rico.—
Ar t icle?. In su r a n ce
BDO sh a ll obt a in a n d m a in t a in in fu ll for ce a n d effect du r in g t h e life of t h is Con t r a ct
policies of in su r a n ce cover in g a ll t h e ser vices en ga ged u n der t h e Con t r a ct , wh ich sh a ll
be obt a in ed fr om in su r a n ce com pa n ies a u t h or ized t o pr ovide cover a ge for oper a t ion s in
P u er t o Rico, a n d t o t h a t effect it sh a ll pr ovide in or igin a l cer t ifica t es of in su r a n ce a n d
en dor sem en t s, a s follows;-
A. Wor k m en 's Com p en s a t ion I n s u r a n ce - BDO s h a ll p r ovid e Wor k m en 's
Com pen sa t ion In su r a n ce a s r equ ir ed by Wor k m en 's Com pen sa t ion Act of t h e
Com m on wea lt h of P u er t o Rico. BDO sh a ll a lso be r espon sible for com plia n ce wit h
sa id Wor k m en 's Com pen sa t ion s Act by a ll it s su bcon t r a ct or s, a gen t s, a n d in vit ees, if
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BDO sh a ll fu r n ish P RE P A a cer t ifica t e fr om t h e St a t e In su r a n ce F u n d sh owin g t h a t
a ll p er s on n el em p loyed in t h e S er vices a r e cover ed by t h e Wor k m en 's
Com pen sa t ion in su r a n ce, in a ccor da n ce wit h t h is Con t r a ct .————————————
If im por t ed t ech n ica l per son n el a r e exem pt ed, a s per Act of Ma y 16,1958, N o.16,
BDO sh a ll fu r n ish eviden ce of su ch exem pt ion a n d cer t ifica t e fr om t h e in su r a n ce
ca r r ier cover in g sa id per son n el.———————————————————————
B. E m ployer 's Lia bilit y In su r a n ce - BDO sh a ll pr ovide E m ployer 's Lia bilit y In su r a n ce
wit h m in im u m bodily in ju r y lim it s of $1,000,000 for ea ch em ployee
a n d $1,000,000 for ea ch a cciden t cover in g a ga in st t h e lia bilit y im posed by la w u pon
BDO a s r esu lt of bodily in ju r y, by a cciden t or disea se, in clu din g dea t h a r isin g ou t of
a n d in t h e cou r se of em ploym en t , ou t side of a n d in t h e cou r se of em ploym en t , a n d
ou t side of a n d dist in ct fr om a n y cla im u n der t h e Wor k m en 's Com pen sa t ion Act of t h e
Com m on wea lt h of P u er t o Rico.-
C. Com m er cia l Gen er a l Lia bilit y In su r a n ce - BDO sh a ll pr ovide a Com m er cia l Gen er a l
Lia bilit y In su r a n ce wit h lim it s of $1,000,000 per occu r r en ce a n d $1,000,000
D. Au t om obile Lia bilit y In su r a n ce - BDO sh a ll pr ovide a Com pr eh en sive Au t om obile
Lia bilit y In su r a n ce wit h lim it s of $1,000,000 com bin ed sin gle lim it s cover in g a ll
own ed, n on -own ed a n d h ir ed a u t om obiles.——————————————————
E . P r ofession a l Lia bilit y In su r a n ce - BDO sh a ll m a in t a in a P r ofession a l Lia bilit y
In su r a n ce wit h lim it s of $1,000,000 per occu r r en ce a n d $1,000,000 a ggr ega t e.—-—
Requ ir em en t s u n der t h e P olicies

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Th e Com m er cia l Gen er a l Lia bilit y a n d Com m er cia l Au t om obile Lia bilit y In su r a n ce
r equ ir ed u n der t h is Con t r a ct sh a ll be en dor sed t o in clu de:
a . As "a ddit ion a l in su r ed":
P u er t o Rico E lect r ic P ower Au t h or it y

Risk Ma n a gem en t Office
P O Box 364267
Sa n J u a n , P R 00936-4267
b. A t h ir t y (30) da y ca n cella t ion or n on r en ewa ble n ot ice t o be sen t by cer t ified m a il wit h
r et u r n r eceipt t o t h e a bove a ddr ess;
c. An en dor sem en t in clu din g t h is Con t r a ct u n der Con t r a ct u a l lia bilit y cover a ge
iden t ifyin g it by n u m ber , da t e, a n d pa r t ies t o t h e Con t r a ct ;
d. Wa iver of su br oga t ion in fa vor of P RE P A for cla im s du e t o BDO's sole n egligen ce;
e. Br ea ch of Wa r r a n t ies or con dit ion s: 'Th e br ea ch of a n y of t h e Wa r r a n t ies or
Con dit ion s in t h is policy by BDO sh a ll n ot pr eju dice P RE P A's r igh t s u n der t h is policy."
F u r n ish in fl of P olicies
All r equ ir ed policies of in su r a n ce sh a ll be issu ed on ly by in su r a n ce com pa n ies
a u t h or ized t o do bu sin ess in P u er t o Rico.-
BDO sh a ll fu r n ish a cer t ifica t e of in su r a n ce in or igin a l sign ed by a n a u t h or ized
r epr esen t a t ive of in su r er in P u er t o Rico, descr ibed t h e cover a ge a ffor ded. Also, or igin a l
of t h e en dor sem en t s sh a ll be fu r n ish ed.—————————————————————
Ar t icle 8. Cer t ifica t ion s or docu m en t s r equ ir ed by la w
P r eviou s t o t h e sign in g of t h is Con t r a ct , BDO will h a ve t o su bm it t h e followin g
docu m en t s or cer t ifica t ion s:

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P a ge 9
a . Cer t ifica t ion issu ed by t h e Tr ea su r y Depa r t m en t of P u er t o Rico wh ich in dica t es
t h a t BDO does n ot owe t a xes t o t h e Com m on wea lt h of P u er t o Rico; or is pa yin g su ch
t a xes by a n in st a llm en t , pla n in fu ll com plia n ce wit h it s t er m s (ca lled "Cer t ifica do Deu da
Con t r ibu t iva " on t h e websit e).——————————————————————————
b. An In com e Ta x Ret u r n F ilin g Cer t ifica t e, issu ed by t h e Tr ea su r y Depa r t m en t of
P u er t o Rico a ssu r in g t h a t BDO h a s filed it s in com e Ta x Ret u r n for t h e la st five (5) t a x
c. Cer t ifica t ion issu ed by t h e Tr ea su r y Depa r t m en t of P u er t o Rico wh ich in dica t es
t h a t BDO does n ot owe P u er t o Rico Sa les a n d U se Ta xes t o t h e Com m on wea lt h of
P u er t o Rico; or is pa yin g su ch t a xes by a n in st a llm en t pla n a n d is in fu ll com plia n ce wit h
d. A P u er t o Rico Sa les a n d U se Ta x F ilin g Cer t ifica t e, issu ed by t h e Tr ea su r y
Depa r t m en t of P u er t o Rico a ssu r in g t h a t BDO h a s filed h is P u er t o Rico Sa les a n d U se
Ta x for t h e la st sixt y (60) con t r ibu t or y per iods.
e. A copy of BDO's Cer t ifica t e of Mer ch a n t 's Regist r a t ion issu ed by t h e Tr ea su r y
Depa r t m en t of P u er t o Rico.——————————————————————————
f. Cer t ifica t ion issu ed by t h e Mu n icipa l Reven u es Collect ion Cen t er (MRCC),
a ssu r in g t h a t BDO does n ot owe a n y t a x a ccr u in g du r in g t h e la st five (5) yea r s t o su ch
gover n m en t a l a gen cy. To r equ est su ch Cer t ifica t ion , BDO will u se t h e for m issu ed by
t h e MRCC (ca lled "CRIM-Cer t ifica dos, Ra dica cion , E st a do de Cu en t a y Todos los
Con cept os"in t h ewebsit e).————————————————————————-——

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P a ge 10
g. A P er son a l P r oper t y Ta x F ilin g Cer t ifica t ion , issu ed by t h e MRCC wh ich in dica t es
t h a t BDO h a s filed it s P er son a l P r oper t y Ta x Ret u r n for t h e la st five (5) con t r ibu t or y
h . Cer t ifica t ion , issu ed by t h e Ch ild Su ppor t Adm in ist r a t ion , a ssu r in g t h a t BDO is in
com plia n ce wit h t h e wit h h oldin gs r equ ir ed by la w a s a n em ployer (ca lled "Cer t ifica cion
de Cu m plim ien t o de ASU ME " or "Cer t iflca do ASU ME pa t r on a l" in t h e websit e).————
i. Cer t ifica t e, issu ed by t h e Depa r t m en t of La bor a n d H u m a n Resou r ces of P u er t o
Rico, a ssu r in g t h a t BDO h a s pa id t o t h e Depa r t m en t of La bor a n d H u m a n Resou r ces of
P u er t o Rico it s em ployees' con t r ibu t ion s a ccr u in g du r in g t h e la st five (5) yea r s, in
a ccor da n ce wit h t h e P u er t o Rico E m ploym en t Secu r it y Act (u n em ploym en t , t em por a r y
disa bilit y or sick n ess or socia l secu r it y for dr iver s/ch a u ffeu r s), or is pa yin g su ch
con t r ibu t ion s by a n in st a llm en t pla n in fu ll com plia n ce wit h it s t er m s. To r equ est su ch
Cer t ifica t ion , BDO will u se t h e for m issu ed by t h e Depa r t m en t of La bor a n d H u m a n
Resou r ces of P u er t o Rico. (ca lled "Cer t ifica cion N ega t iva de Deu da de Con t r ibu cion es
de Segu r o pa r Desem pleo y Segu r o por In ca pa cida d n o ocu pa cion a l Tem por a l
(P a t r on a l)" a n d "Cer t ifica do Deu da Segu r o Ch ofer il" in t h e websit e).— ————————
j. A swor n st a t em en t t o t h e effect t h a t , a s of t h e effect ive da t e, n eit h er Con su lt a n t n or it s
pr esiden t , vice-pr esiden t , dir ect or s, execu t ive dir ect or , m em ber s of it s boa r d of dir ect or s
or boa r d of officer s, n or a n y of it s officia ls or per son s per for m in g equ iva len t fu n ct ion s for
t h e Con su lt a n t ; n or it s su bsidia r ies or a lt er egos h a ve been con vict ed of, n or h a ve t h ey
pled gu ilt y, in P u er t o Rico, in t h e feder a l ju r isdict ion , in a n y st a t e or t er r it or y of t h e
U n it ed St a t es of Am er ica or in a n y cou n t r y, t o a n y cr im e a s en u m er a t ed in Ar t icle 3 of

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P a ge 11
P u blic La w 458 of Decem ber 29, 2000 of t h e Com m on wea lt h of P u er t o Rico, a s
In a ccor da n ce wit h Ar t icle 6 of Act 458-2000, a s a m en ded, BDO a ck n owledges t h a t it s
con vict ion or gu ilt y plea for a n y of t h e cr im es a s en u m er a t ed in Ar t icle 3 of su ch Act
sh a ll en t a il, in a ddit ion t o a n y ot h er a pplica ble pen a lt y, t h e a u t om a t ic r escission of t h is
Con t r a ct . In a ddit ion , bu t on ly t o t h e ext en t r equ ir ed by Act 458-2000, P RE P A sh a ll
h a ve t h e r igh t t o dem a n d t h e r eim bu r sem en t of pa ym en t s m a de pu r su a n t t o t h is
Con t r a ct t h a t dir ect ly r esu lt fr om t h e com m it t ed cr im e. It sh a ll be BDO's r espon sibilit y,
a lso t o r equ ir e a ll su bcon t r a ct ed t h ir d pa r t ies, ot h er t h a n t h ose pr ovidin g in ciden t a l
ser vices su ch a s m essen ger a n d ph ot ocopy ser vices, t o com ply wit h a ll t h e pr eviou s
Cer t ifica t ion s a n d t o n ot ify P RE P A of su ch com plia n ce. If a n y of t h e pr eviou sly r equ ir ed
Cer t ifica t ion s sh ows a debt , a n d BDO h a s r equ est ed a r eview or a dju st m en t of t h is
debt , BDO will cer t ify t h a t it h a s m a de su ch r equ est a t t h e t im e of sign in g t h e Con t r a ct .
If t h e r equ est ed r eview or a dju st m en t is den ied a n d su ch det er m in a t ion is fin a l, BDO will
pr ovide, im m edia t ely, pr oof of pa ym en t of t h is debt t o P RE P A; ot h er wise, BDO a ccept s
t h a t t h e owed a m ou n t will be offset by P RE P A a n d r et a in ed a t t h e or igin , dedu ct ed fr om
t h e cor r espon din g pa ym en t s. Specifica lly, BDO r ecogn izes t h a t su bm it t a l of t h e
a for em en t ion ed cer t ifica t ion s a n d docu m en t s is a n essen t ia l con dit ion of t h is Con t r a ct ;
a n d even in t h e ca se t h a t t h ey a r e pa r t ia lly in cor r ect , t h er e will be su fficien t ca u se for
P RE P A, a t it s opt ion , t o t er m in a t e, ca n cel or r escin d t h e Con t r a ct a n d t o r equ ir e BDO t o
r efu n d a ll pa ym en t s r eceived.-
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P a ge 12
Ar t icle 9. Applica ble La w a n d J u r isdict ion
Th is Con t r a ct sh a ll be gover n ed by a n d con st r u ed in a ccor da n ce wit h t h e la ws of t h e
Com m on wea lt h of P u er t o Rico. Also, t h e con t r a ct in g P a r t ies expr essly a gr ee t h a t on ly
t h e cou r t s of P u er t o Rico sh a ll be t h e cou r t s of com pet en t a n d exclu sive ju r isdict ion t o
decide over t h e ju dicia l con t r over sies t h a t t h e a ppea r in g P a r t ies m a y h a ve a m on g t h em
r ega r din g t h e t er m s a n d con dit ion s of t h is Con t r a ct .-
Ar t icle 10. Officia ls N ot t o Ben efit
E a ch of t h e P a r t ies h er eby r epr esen t s t h a t , t o it s k n owledge, n o officer , em ployee or
a gen t of P RE P A, or of t h e Gover n m en t of t h e Com m on wea lt h of P u er t o Rico or
Mu n icipa l Gover n m en t , sh a ll be a dm it t ed t o a n y sh a r e or pa r t of t h is Con t r a ct or h a s
a n y dir ect or in dir ect per son a l fin a n cia l in t er est t h a t m a y a dver sely a ffect t h is Con t r a ct .
In a ddit ion t o t h e r est r ict ion s a n d lim it a t ion s est a blish ed u n der t h e pr ovision s of Act 12
of J u ly 24, 1985, a s a m en ded, r et ir ed or for m er officer s or em ployees of P RE P A, wh ose
wor k wa s in a n y wa y r ela t ed t o t h e a wa r d or m a n a gem en t of Con t r a ct s, sh a ll in n o wa y
ben efit fr om a n y Con t r a ct wit h P RE P A for a per iod of t wo (2) yea r s a ft er lea vin g
em ploym en t wit h or cea sin g ser vices t o P RE P A.—————————————————
Ar t icle 11. Con flict of In t er est
BDO cer t ifies t h a t it does n ot r eceive pa ym en t or ben efit of a n y n a t u r e for ser vices
r en der ed r egu la r ly t h r ou gh a n a ppoin t m en t t o a gover n m en t a l a gen cy, body, pu blic
cor por a t ion or m u n icipa lit y of P u er t o Rico. BDO a lso cer t ifies t h a t it m a y h a ve
con su lt in g ser vices con t r a ct s wit h ot h er gover n m en t a l a gen cies or bodies in P u er t o Rico
a n d elsewh er e, bu t su ch con dit ion does n ot con st it u t e a con flict of in t er est for BDO.—-
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P a ge 13
BDO a ck n owledges t h a t , wh ile per for m in g it s pr ofession a l obliga t ion s u n der t h is
Con t r a ct , it h a s a du t y of com plet e loya lt y t owa r d P RE P A, in r en der in g it s pr ofession a l
ser vices, wh ich in clu des n ot r epr esen t in g con flict in g in t er est s wit h r espect t o P RE P A.
BDO r epr esen t s con flict in g in t er est s wh en on beh a lf of a clien t it m u st con t en d for t h a t
wh ich it is it s du t y t o oppose t o com ply wit h it s obliga t ion s wit h a n ot h er pr eviou s or
pr esen t clien t . Also, BDO r epr esen t s con flict in g in t er est s wh en it s con du ct is descr ibed
a s su ch in t h e ca n on s of et h ics a pplica ble t o BDO a n d it s per son n el or in t h e la ws or
r egu la t ion s of t h e Com m on wea lt h of P u er t o Rico. BDO sh a ll h a ve t h e con t in u ou s
obliga t ion t o disclose t o P RE P A a ll in for m a t ion a n d cir cu m st a n ces of it s r ela t ion s wit h
clien t s a n d ot h er t h ir d per son s a n d a n y ot h er fa ct or s t h a t becom e k n own t o BDO t h a t
pr esen t a con flict of in t er est a t t h e t im e of execu t in g t h is Con t r a ct or du r in g it s t er m .-
In con t r a ct s wit h pa r t n er sh ips or fir m s, in t h e even t t h a t a n y of t h e pa r t n er s, dir ect or s or
em ployees of BDO sh ou ld en ga ge in t h e con du ct descr ibed h er ein wit h r espect t o
r epr esen t a t ion of P RE P A, sa id con du ct sh a ll con st it u t e a viola t ion of t h e pr oh ibit ion s
BDO sh a ll a void even t h e a ppea r a n ce of t h e exist en ce of con flict in g in t er est s.
BDO a ck n owledges t h a t t h e E xecu t ive Dir ect or of P RE P A sh a ll h a ve t h e power t o
in t er ven e in t h e a ct s of BDO a n d/or it s a gen t s, em ployees, a n d su bcon t r a ct or s
r ega r din g t h e en for cem en t of t h e pr oh ibit ion s con t a in ed h er ein . In t h e even t t h a t
P RE P A sh ou ld discover t h e exist en ce of con flict in g in t er est s wit h BDO, t h e E xecu t ive
Dir ect or sh a ll in for m BDO, in wr it in g, of P RE P A's in t en t ion t o t er m in a t e t h is Con t r a ct
wit h in a t h ir t y (30) da y per iod. Du r in g sa id per iod, BDO m a y r equ est a m eet in g wit h t h e

P a ge 14
E xecu t ive Dir ect or t o pr esen t t h eir a r gu m en t s r ega r din g t h e a lleged con flict of in t er est s,
wh ich m eet in g sh a ll be gr a n t ed by P RE P A in ever y ca se of a n a lleged con flict of
in t er est s. In t h e even t t h a t BDO does n ot r equ est su ch a m eet in g du r in g t h e specified
t h ir t y (30) da y per iod or t h e con t r over sy is n ot sa t isfa ct or ily set t led du r in g t h e m eet in g,
t h is Con t r a ct sh a ll be ca n celled.-
Ar t icle 12. N o discr im in a t ion
BDO cer t ifies t h a t it wilt n ot discr im in a t e a ga in st a n y per son on a ccou n t of a ge, r a ce,
color , n a t ion a l or igin or socia l con dit ion s, ph ysica l or m en t a l im pa ir m en t , sex, sexu a l
or ien t a t ion , polit ica l or r eligiou s belief or st a t u s. —-
Ar t icle 13. Gu a r a n t ees
BDO h er eby gu a r a n t ees t h a t it is ca pa ble a n d h a s t h e r equ ir ed exper ien ce t o execu t e
t h e wor k a n d pr ovide t h e sen /ices est a blish ed u n der t h e Con t r a ct in a pr ofession a l
m a n n er a n d in a ccor da n ce wit h a pplica ble pr ofession a l st a n da r ds, la ws a n d r egu la t ion s.
Ar t icle 14. Sepa r a bilit y
If a cou r t of com pet en t ju r isdict ion decla r es a n y of t h e Con t r a ct pr ovision s a s n u ll or
in va lid, su ch h oldin g will n ot a ffect t h e va lidit y a n d effect iven ess of t h e r em a in in g
pr ovision s of t h e Con t r a ct a n d t h e pa r t ies a gr ee t o com ply wit h t h eir r espect ive
obliga t ion s u n der su ch pr ovision s n ot in clu ded by t h e ju dicia l decla r a t ion .——————
Ar t icle 15. In com e Ta x Wit h h oldin g
P RE P A will dedu ct a n d wit h h old a t sou r ce t o BDO t h e equ iva len t of seven per cen t (7%)
fr om pa ym en t for ser vices r en der ed u n der t h is Con t r a ct , in com plia n ce wit h t h e In t er n a l
Reven u e Code for a N ew P u er t o Rico, La w N o. 1-2011, sect ion 1062.03, a s a m en ded.

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P a ge 15
N ot wit h st a n din g, t h e wit h h oldin g t o be don e by P RE P A a s h er ein st a t ed cou ld be
in cr ea sed t o: t wen t y per cen t (20%) in t h e even t t h a t BDO is a n on -r esiden t in dividu a l,
wh ich is a U .S. cit izen , a s pr ovided by t h e In t er n a l Reven u e Code for t h e N ew P u er t o
Rico, sect ion 1062.08; or t wen t y-n in e per cen t (29%) in t h e even t t h a t BDO is a n on -
r esiden t a n d n on U . S. cit izen in dividu a l; or a for eign cor por a t ion or pa r t n er sh ip wh ich is
n ot dedica t ed t o in du st r y or bu sin ess in P u er t o Rico, a s pr ovided by t h e In t er n a l
Reven u e Code for t h e N ewpu er t ^ Rjco, sect ion 1062.08.-
If a Relea se Let t er (Tot a l Wa iver Cer t ifica t e) h a s been issu ed t o BDO by t h e Tr ea su r y
Depa r t m en t , BDO sh a ll be r espon sible t o su bm it a copy of sa id Relea se Let t er t o
P RE P A for ever y ca len da r yea r ; ot h er wise, pa ym en t s u n der t h e Con t r a ct sh a ll r em a in
su bject t o wit h h oldin g a t sou r ce. All in voice sh a ll be segr ega t ed by con cept s (ser vices,
m a t er ia ls, equ ipm en t s, et c), t o iden t ify t h e a m ou n t s su bject t o wit h h oldin g, a n d a void
u n du ededu ct ion s.———————————————————————————————
Ar t icle 16. Specia l Con t r ibu t ion
P RE P A will dedu ct a n d wit h h old a Specia l Con t r ibu t ion t o BDO t h e equ iva len t of on e
poin t five per cen t (1.5%) fr om pa ym en t for ser vices u n der t h is Con t r a ct , in com plia n ce
wit h Ar t icle 1, La w N o. 48-2013. N ot wit h st a n din g, a dver t isin g spot s, r ejm bu r sa ble
expen ses a n d t h e cost of equ ipm en t or m a t er ia ls a r e exclu ded.—— —————————
Ar t icle 17. In t er n a l Reven u e Ser vices
Sin ce BDO is a n in depen den t con t r a ct or , a t t h e pr esen t t im e t h er e sh a ll be n o
wit h h oldin g or dedu ct ion fr om t h e fees for feder a l in com e t a x pu r poses. BDO sh a ll be
r espon sible for seein g t o t h e filin g a n d pa yin g of in com e t a xes t o t h e In t er n a l Reven u e

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P a ge 16
Sen /ice (IRS) or ot h er a ppr opr ia t e F eder a l Gover n m en t Agen cy. N ever t h eless, P RE P A
sh a ll n ot ify t h e IRS or ot h er a ppr opr ia t e F eder a l Gover n m en t Agen cy of t h e pa ym en t s
a n d t h e disbu r sem en t s m a de t o BDO."
Ar t icle 18. Sa ve a n d H old H a r m less
BDO a gr ees t o sa ve a n d h old h a r m less a n d t o in dem n ify P RE P A for a ll expen ses a n d
cost s of a n y n a t u r e (in clu din g r ea son a ble a t t or n eys' fees) in cu r r ed by P RE P A a r isin g
ou t of a n y t h ir d pa r t y cla im m a de by a n y per son for bodily in ju r ies, in clu din g dea t h , or
for pr oper t y da m a ge, t o t h e ext en t dir ect ly ca u sed by BDO, by t h e n egligen t a ct or
om ission , in t h e per for m a n ce or n on per for m a n ce of it s obliga t ion s u n der t h e Con t r a ct ,
bu t n ot t o t h e poin t dir ect ly ca u sed by n egligen ce or t or t of P RE P A or a t h ir d pa r t y,
wh ich is n ot a n em ployee or su bcon t r a ct or of BDO.————————————————
Wit h r espect t o a n y in dem n it y set for t h in t h is Con t r a ct , ea ch in dem n it y sh a ll give
pr om pt n ot ice of it s r eceipt of a n y t h r ea t , in dica t ion or ot h er n ot ice of a n y cla im ,
in vest iga t ion or dem a n d t h a t m igh t give r ise t o a n y losses r equ ir ed t o be in dem n ified
h er eu n der a n d sh a ll r ea son a bly cooper a t e in t h e defen se of su ch cla im . Th e
in dem n ifyin g pa r t y sh a ll h a ve t h e r igh t t o con du ct defen se of su ch a ct ion a t it s sole
Ar t icle 19. N ot ices
An y n ot ice a n d ot h er com m u n ica t ion s h er eu n der sh a ll be in wr it in g a n d sh a ll be
deem ed given wh en deliver ed per son a lly or pr oper ly m a iled t o t h e pa r t ies a t t h e
followin g a ddr esses:


P a ge 17
To P RE P A: P u er t o Rico E lect r ic P ower .Au t h or it y

P O Box 364267
Sa n J u a n , P R 00936-4267
At t en t ion : J u s t o L. Gon zd lez Tor r es
E xecu t ive Dir ect or
To BDO: BDO P u er t o Rico, P .S .C,

P O Box 363436,
Sa n J u a n , P R 00936-3436
At t en t ion : Wa lla ce Rodr igu ez P a r issi
P a r t n er
Ar t icje 20. Ch a n ge in La w
Du r in g t h e t er m of t h is Con t r a ct , a n y ch a n ge in la w, in clu din g, bu t n ot lim it ed t o ch a n ges
in a p p lica ble t a x la w, wh ich ca u s es a n in cr ea s e in BDO's cos t s wh en p r ovid in g t h e i
sen /ices, sh a ll be BDO's r espon sibilit y a n d P RE P A sh a ll n ot be obliga t ed t o m a k e
a ddit ion a.^

l pa ym en t....
s beyon d „„
t h e pr ice or igin a lly a gr eed „,..„...
for t h ose ser vices.—————
^ ^ .^ ^ ..,.,.„., ...^ ..._. ^
Ar t icle 21, F or ce Ma jeu r e
Th e P a r t ies h er et o sh a ll be excu sed fr om per for m in g h er eu n der a n d sh a ll n ot be lia ble
in d a m a ges , if a n d on iy t o t h e ext en t t h a t t h ey s h a ll be u n a ble t o p er for m , or a r e }
pr even t ed fr om per for m in g by a F or ce Ma jeu r e even t . F or pu r poses of t h is Con t r a ct , |
F or ce Ma jeu r e m ea n s a n y ca u s e wit h ou t t h e fa u lt or n egligen ce a n d beyon d t h e ]
r ea s on a ble con t r ol of, t h e P a r t y cla im in g t h e occu r r en ce of a F or ce Ma jeu r e even t . '
F or ce Ma jeu r e m a y in clu de, bu t n ot be lim it ed t o, t h e followin g: Act s of God, in du st r ia l ;
dist u r ba n ces, a ct s of t h e pu blic en em y, t er r or ism , wa r , block a des, boycot t s, r iot s,
in su r r ect ion s, epidem ics, ea r t h qu a k es, st or m s, floods, civil dist u r ba n ces, lock ou t s, fir es, ;
explosion s, in t er r u pt ion s of ser vices du e t o t h e a ct s or fa ilu r e t o a ct of a n y gover n m en t a l

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P a ge 18
a u t h or it y; pr ovided t h a t t h ese even t s, or a n y ot h er cla im ed a s a F or ce Ma jeu r e even t ,
a n d/or it s effect s, a r e beyon d t h e r ea son a ble con t r ol a n d wit h ou t t h e fa u lt or n egligen ce
of t h e P a r t y cla im in g t h e F or ce Ma jeu r e even t , a n d t h a t su ch P a r t y, wit h in t en (10) da ys
a ft er t h e occu r r en ce of t h e a lleged F or ce Ma jeu r e even t , gives t h e ot h er P a r t y wr it t en
n ot ice descr ibin g t h e pa r t icu la r s of t h e occu r r en ce a n d it s est im a t ed du r a t ion . Th e
bu r den of pr oof a s t o wh et h er a F or ce Ma jeu r e even t h a s occu r r ed sh a ll be on t h e P a r t y
cla im in g t h e F or ce Ma jeu r e even t .—
Ar t icle 22. Am en dm en t s
BDO a n d P RE P A expr essly a gr ee t h a t n o a m en dm en t or ch a n ge or der wh ich m a y be
m a de t o t h e Con t r a ct , du r in g it s t er m , sh a ll be m a de, u n less bot h P a r t ies a gr ee t o it ,
specifica lly a n d in wr it in g. Th e pr eviou s pr ovision sh a ll be equ a lly a pplica ble in su ch
ot h er ca ses wh er e P RE P A gives BDO a t im e ext en sion for t h e com plia n ce wit h a n y of
it s obliga t ion s u n der t h e Con t r a ct or wh er e P RE P A does n ot en for ce a n y of it s cr edit s or
r igh t s u n der t h e Con t r a ct .—————————————————————————
Ar t icle 23. Repr esen t a t ion s
23.1 P RE P A r epr esen t s a n d wa r r a n t s t o BDO t h a t (a ) P RE P A's execu t ion a n d
deliver y of t h is Con t r a ct h a s been du ly a u t h or ized, a n d (b) t h e per son sign in g t h is
Con t r a ct is expr essly a u t h or ized t o execu t e it on beh a lf of, a n d t o bin d, P RE P A.
23.2 E xcept for a cla im lim it ed solely t o seek in g n on -m on et a r y or equ it a ble r elief, a n y
dispu t e or cla im a r isin g ou t of or r ela t in g t o t h e Ser vices, t h is Con t r a ct or a n y
ot h er ser vices pr ovided by or on beh a lf of BDO or a n y of it s su bcon t r a ct or s or
a gen t s t o P RE P A or a t P RE P A's r equ est (in clu din g a n y m a t t er in volvin g a n y t h ir d

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P a ge 19
pa r t y for wh ose ben efit a n y su ch ser vices a r e pr ovided), sh a ll be r esolved by t h e
st a t e cou r t s of P u er t o Rico.-
Ar t icle 24. Code of E t h ics
BDO a gr ees t o com ply wit h t h e pr ovision s of Act 84 of J u n e 18, 2002, a s a m en ded,
wh ich est a blish es a Code of E t h ics for Con t r a ct or s, Su pplier s a n d E con om ic In cen t ive
Applica n t s of t h e E xecu t ive Agen cies of t h e Com m on wea lt h of P u er t o Rico.————-—
Ar t icle 25. Su bcon t r a ct
F r om t im e t o t im e, a n d depen din g u pon t h e cir cu m st a n ces, (1) BDO m a y su bcon t r a ct
por t ion s of t h e Ser vices t o ot h er m em ber fir m s of t h e Globa l BDO P u er t o Rico, P .S.C
(in clu din g "BDO E n t it ies"), wh o m a y dea l wit h P RE P A dir ect ly, t h ou gh BDO a lon e will
r em a in r espon sible t o P RE P A for t h e Ser vices, a n d (2) per son n el (in clu din g n on -
cer t ified pu blic a ccou n t a n t s) fr om a n a ffilia t e of BDO or a n ot h er BDO E n t it y, or a n y of
t h eir r espect ive a ffilia t es or fr om in depen den t t h ir d-pa r t y ser vice pr ovider s (in clu din g
in depen den t Con t r a ct or s), m a y pa r t icipa t e in pr ovidin g t h e Ser vices.-————————
BDO sh a ll n ot a ssign n or su bcon t r a ct it s r igh t s a n d obliga t ion s u n der t h is Con t r a ct ,
except in t h e even t P RE P A gives wr it t en a u t h or iza t ion for su ch a ct ion s; pr ovided t h a t n o
su bcon t r a ct sh a ll be con sider ed for P RE P A's a ppr ova l, except wh en t h e followin g
r equ ir em en t s a r e m et : (1) BDO deliver s P RE P A a copy of t h e su bcon t r a ct , n ot less
t h a n t h ir t y (30) da ys pr ior t o t h e effect ive da t e of pr oposed su bcon t r a ct ; (2) t h e
su bcon t r a ct in clu des, a s a con dit ion for it s lega l va lidit y a n d en for cea bilit y, a pr ovision
wh er eby P RE P A h a s t h e r igh t t o su bst it u t e, su br oga t e or a ssu m e BDO's r igh t u n der t h e
su bcon t r a ct , in t h e even t t h a t P RE P A decla r es BDO in br ea ch or defa u lt of a n y of t h e

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P a ge 20
Con t r a ct t er m s a n d con dit ion s; a n d (3) t h e su bcon t r a ct in clu des, a s a con dit ion for it s
va lidit y a n d en for cea bilit y, a pr ovision est a blish in g for t h e su bcon t r a ct or t h e obliga t ion t o
com ply wit h a lt BDO's obliga t ion s u n der t h e Con t r a ct (m ir r or im a ge cla u se), except for
su ch obliga t ion s, t er m s, a n d con dit ion s wh ich exclu sively r ela t ed t o wor k s or ser vices
n ot in clu ded u n der t h e su bcon t r a ct .———————————————————————
BDO sh a ll be r espon sible for a n y Ser vices per for m ed by a n y su bcon t r a ct or a s if su ch
wer e per for m ed by BDO it self.-
Ar t icle 26. Requ est for E m ploym en t P r oh ibit ion
P RE P A sh a ll n ot , du r in g t h e t er m of t h is Con t r a ct a n d for h A/elve (12) m on t h s followin g
it s t er m in a t ion for a n y r ea son , wit h ou t t h e pr ior wr it t en con sen t of BDO, r equ est for
em ploym en t , or h ir e, a n y cu r r en t or for m er pa r t n er , pr in cipa l or pr ofession a l em ployee
^ of BDO, a n y a ffilia t e t h er eof, a n y ot h er BDO's E n t it y or a n y of t h eir r espect ive a ffilia t es
if a n y su ch pr ofession a l eit h er : (i) per for m ed a n y a ccou n t in g, r eview, a t t est or r ela t ed
sen /ices for or r ela t in g t o P RE P A a t a n y t im e (a ) du r in g t h e t h en cu r r en t fisca l yea r of
P RE P A u p t o a n d in clu din g t h e da t e of t h e a ccou n t in g r epor t for t h a t yea r or (b) in t h e
t welve (12) m on t h s en ded on t h e a u dit r epor t da t e for t h e im m edia t ely pr ecedin g fisca l
yea r , or (ii) in flu en ce BDO's oper a t ion s of fin a n cia l policies or h a s a n y ca pit a l ba la n ces
or a n y ot h er con t in u in g fin a n cia l a r r a n gem en t wit h BDO.-
Ar t icle 27, Cla im s for Accou n t in g a n d Advisor y Ser vices
P RE P A m a y n ot m a k e a cla im or br in g pr oceedin gs r ela t in g t o t h e Accou n t in g a n d
Advisor y Ser vices or ot h er wise u n der t h is Con t r a ct a ga in st a n y ot h er BDO'S E n t it y or it s
su bcon t r a ct or s, m em ber s, sh a r eh older s, dir ect or s, officer s, pa r t n er s, pr in cipa ls or


P a ge 21
em ployee ("BDO P er son s"). P RE P A sh a ll m a k e a n y cla im or br in g pr oceedin gs on ly
a ga in st BDO. Th is pa r a gr a ph is in t en ded t o ben efit t h e ot h er BDO E n t it ies a n d BDO's
P er son , wh o sh a ll be en t it led t o en for ce it . E a ch BDO's E n t it y is a sepa r a t e lega l en t it y.
Ar t icle 28. Tr a n sfer of F u n ds
If BDO decides t o a ssign or t r a n sfer a n a m ou n t , du e or pa ya ble, t o wh ich h e is en t it led
for ser vices r en der ed or goods pr ovided du r in g t h e t er m of t h is Con t r a ct , BDO sh a ll
n ot ify P RE P A of s u ch t r a n s fer of fu n d s , in a ccor d a n ce t o t h e p r ovis ion s of
Act 21-2012. Sa id n ot ice sh a ll clea r ly in dica t e t h e r igh t s gr a n t ed, in clu din g a copy of t h e
con t r a ct u n der wh ich t h e a ssign m en t or t r a n sfer of fu n ds is m a de, t h e exa ct a m ou n t of
fu n ds t o be a ssign ed or t r a n sfer r ed, a n d specific iden t ifica t ion in for m a t ion r ega r din g t h e
a ssign ee (fu ll n a m e of t h e per son or com pa n y), a ddr ess a n d a n y ot h er con t a ct
BDO a ck n owledges a n d a gr ees t h a t P RE P A m a y dedu ct a n y a m ou n t , du e or pa ya ble
u n der t h is Con t r a ct , t h a t BDO owes; P RE P A m a y r et a in a n y sa id a m ou n t if BDO fa ils t o
fu lfill it s obliga t ion s a n d r espon sibilit ies u n der t h is Con t r a ct , or a cla im a r ises for
wa r r a n t y or defect s r ega r din g t h e ser vices r en der ed or goods pr ovided u n der t h is
Con t r a ct , BDO a lso a ck n owledges a n d a gr ees t h a t P RE P A's pa ym en t obliga t ion u n der
a n y a ssign m en t of fu n ds will cea se u pon pa ym en t of t h e ou t st a n din g a m ou n t s u n der
t h is Con t r a ct . P RE P A sh a ll n ot be r equ ir ed t o m a k e pa ym en t s or t r a n sfer a n y fu n ds for
a n a m ou n t t h a t exceeds t h e pa ym en t t o wh ich BDO is en t it led t o u n der t h is Con t r a ct .
BDO's a for em en t ion ed n ot ice of a ssign m en t of fu n ds sh a ll be a ccom pa n ied by a
ca sh ier 's ch eck or m on ey or der pa ym en t of t wo h u n dr ed dolla r s ($200), pa ya ble t o

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P a ge 22
"P u er t o Rico E lect r ic P ower Au t h or it y", for a dm in ist r a t ive cost s for pr ocessin g sa id
a ssign m en t -
P a r t II; Accou n t in g Ser vices
Ar t icle 1. Scope of Ser vices
1.1 Th is pa r t set s for t h t h e t er m s a n d con dit ion s on wh ich BDO will per for m t h e
Accou n t in g Ser vices, a s descr ibed in E xh ibit A, Accou n t in g Ser vices.
1.2 BDO will est a blish a n d docu m en t a n u n der st a n din g wit h P RE P A r ega r din g t h e
object ives a n d scope of wor k of Accou n t in g Ser vices in E xh ibit A.
1.3 To per for m t h e Accou n t in g Ser vices, BDO per son n el sh a ll h a ve a s a m in im u m
edu ca t ion a Ba ch elor 's Degr ee wit h Ma jor in Accou n t in g, wit h a t lea st t wo (2) yea r s
of exper ien ce in a ccou n t in g a n d or bu dget wor k r ela t ed a ct ivit y.
Ar t icle 2. P a ym en t Ter m s
2.1 BDO sh a ll su bm it m on t h ly in voices for ser vices per for m ed a n d P RE P A, u pon
r eview a n d a ppr ova l by P RE P A's Tr ea su r y Division , sh a ll pa y t h e fu ll in voice
a m ou n t wit h in t h ir t y (30) da ys of t h e P RE P A's Tr ea su r y Division a ppr ova l da t e.
2.2 BDO's m a xim u m pr ofession a l fees for t h e Accou n t in g Ser vices will be on e
h u n dr ed a n d t wen t y eigh t t h ou sa n d dolla r s ($128,000).—-——————————
2.3 BDO sh a ll su bm it it s in voices it em ized by wor k per for m ed a n d by a r a t e per h ou r
of $80.00 on a m on t h ly ba sis. E a ch in voice sh a ll be du ly cer t ified, det a ilin g t h e
ser vices per for m ed a n d t h e t im e devot ed t o it .————————————————


P a ge 23
P a r t III: Advisor y Ser vices
Ar t icle 1. Scope of Wor k
BDO will per for m Advisor y Ser vices a s descr ibed below. P er for m a n ce of t h e Advisor y
Ser vices is su bject t o t h e t er m s a n d con dit ion s of P a r t I a n d III of t h is Con t r a ct .-
Th e Scope of Ser vices, Lim it a t ion s, a n d Specific Addit ion a l U n der st a n din gs for t h e
Advisor y Sen /ices will be t h ose set for t h in E xh ibit B, Advisor y Ser vices.———————
Ar t icle 2. P a ym en t for Advisor y Ser vices
2.1 BDO sh a ll su bm it m on t h ly in voices for ser vices per for m ed a n d P RE P A, u pon
r eview a n d a ppr ova l by P RE P A's Tr ea su r y Division , sh a ll pa y t h e fu ll in voice
a m ou n t wit h in t h ir t y (30) da ys of t h e P RE P A's Tr ea su r y Division a ppr ova l da t e.
2.2 BDO sh a ll bill P RE P A a ccor din g t o t h e r a t es per h ou r ou t lin ed in t h e t a ble set
for t h below.
?iE P A F ?--;ci>l P l.'a RAp-jr t isg 3^ Ar i-r ..ly'j.':t A^ KVWt -r it
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Accou n t in g a n d Ad vis or y S er vices BDO P u er t o Rico, P .S .C. "'• ^ • L','

P a ge 24
2.3 BDO's m a xim u m pr ofession a l fees for t h e Advisor y Ser vices will be t h r ee h u n dr ed
a n d t wen t y t wo t h ou sa n d dolla r s ($322,000), in clu din g a ll r eim bu r sa ble expen ses
a s descr ibed in Ar t icle 2.4.-————————————————————————
2.4 P RE P A sh a ll a lso r eim bu r se BDO for ot h er r ea son a ble expen ses in cu r r ed, wit h
P RE P A's pr eviou s a ppr ova l, in per for m in g t h e Advisor y Ser vices. BDO'S fees
does n ot in clu de t a xes or sim ila r ch a r ges, a s well a s cu st om s, du t ies or t a r iffs
im posed in r espect of t h e Advisor y Ser vices, a ll of wh ich P RE P A sh a ll pa y (ot h er
t h a n t a xes im posed on BDO'S in com e gen er a lly). BDO m a y r eceive r eba t es in
con n ect ion wit h cer t a in pu r ch a ses, wh ich it u ses t o r edu ce ch a r ges t h a t we wou ld
ot h er wise pa ss on t o pRE P A.—-—————————————————————
Ar t icle 3. Addit ion a l Gen er a l Ter m s a n d Con dit ion s for t h e Advisor y Ser vices
Th e Advisor y Ser vices will be su bject t o t h e followin g a ddit ion a l gen er a l t er m s a n d
con dit ion s:
3.1 BDO will per for m t h e Advisor y Ser vices in a ccor da n ce wit h a pplica ble pr ofession a l
3.2 BDO will n ot a ssu m e a n y of P RE P A's m a n a gem en t r espon sibilit ies in con n ect ion
wit h t h e Advisor y Ser vices. BDO will n ot be r espon sible for t h e u se or
im plem en t a t ion of t h e ou t pu t of t h e Advisor y Ser vices, a lt h ou gh BDO m a y
ot h er wise pr ovide a dvice a n d r ecom m en da t ion s t o a ssist P RE P A in it s
m a n a gem en t fu n ct ion s a n d m a k in g decision s.—-——

I.
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Accou n t in g a n d Ad vis or y S e n /ice s BD O P u e r t o Rico, P .S .C. ""'^

P a ge 25
3.3 P RE P A sh a ll a ssign a qu a lified per son t o over see t h e Advisor y Ser vices. P RE P A
is r espon sible for a ll m a n a gem en t decision s r ela t in g t o t h e Advisor y Ser vices, t h e
u se or im plem en t a t ion of t h e ou t pu t of t h e Advisor y Ser vices a n d for det er m in in g
wh et h er t h e Advisor y Ser vices a r e a ppr opr ia t e for P RE P A's pu r poses.—————
3.4 P RE P A sh a ll pr ovide t o BDO, pr om pt ly, t h e in for m a t ion , r esou r ces a n d a ssist a n ce
(in clu din g a ccess t o r ecor ds, syst em s, pr em ises a n d people) t h a t BDO r ea son a bly
r equ ir es t o per for m t h e Advisor y Ser vices.-
3.5 To t h e best of P RE P A's k n owledge, a ll in for m a t ion pr ovided by or on P RE P A's
beh a lf will be a ccu r a t e a n d com plet e in a ll m a t er ia l r espect s. Th e pr ovision of
P RE P A In for m a t ion t o BDO will n ot in fr in ge a n y copyr igh t or ot h er t h ir d-pa r t y
3.6 BDO will r ely in P RE P A In for m a t ion m a de a va ila ble t o t h em a n d, u n less BDO
expr essly a gr ees ot h er wise, will h a ve n o r espon sibilit y t o eva lu a t e or ver ify it .
3.7 P RE P A sh a ll be r espon sible for it s per son n el's com plia n ce wit h it s obliga t ion s
u n der t h is Con t r a ct .———————————————————————————
Ar t icle 4. U se of Repor t s a n d Recom m en da t ion s
An y in for m a t ion , a dvice, r ecom m en da t ion s or ot h er con t en t of a n y r epor t s,
pr esen t a t ion s or ot h er com m u n ica t ion s BDO pr ovides u n der t h is Con t r a ct (Repor t s),
ot h er t h a n P RE P A In for m a t ion , a r e for P RE P A's in t er n a l u se on ly (con sist en t wit h t h e
pu r pose of t h e pa r t icu la r Advisor y Ser vices).———————————————————


P a ge 26
P RE P A m a y n ot disclose a Repor t (or a n y por t ion s or su m m a r y of a Repor t ) ext er n a lly
(in ciu din g t o it s a ffilia t es) or r efer t o BDO or t o a n y ot h er BDO's a ffilia t es in con n ect ion
wit h t h e Advisor y Ser vices, except :——————————————————————
a . t o P RE P A's la wyer s (su bject t o t h ese disclosu r e r est r ict ion s), wh o m a y r eview
it on ly t o give P RE P A a dvice r ela t in g t o t h e Advisor y Ser vices,——————
b. t o t h e ext en t , a n d for t h e pu r poses, r equ ir ed by su bpoen a or sim ila r lega l
pr ocess (of wh ich P RE P A will pr om pt ly n ot ify BDO),———————————
c. t o ot h er per son s (in clu din g P RE P A a ffilia t es) wit h BDO pr ior wr it t en con sen t ,
wh o h a ve execu t ed a n a ccess let t er su bst a n t ia lly in t h e for m BDO pr escr ibes
a n d wh o m a y u se it on ly a s BDO h a s specified in it s con sen t .-——————
If P RE P A is per m it t ed t o disclose a Repor t (or a por t ion t h er eof) ext er n a lly, P RE P A
sh a ll n ot a lt er , edit or m odify it fr om t h e for m BDO pr ovided. H owever , P RE P A m a y
in cor por a t e in t o docu m en t s t h a t it in t en ds t o disclose ext er n a lly BDO su m m a r ies,
ca lcu la t ion s or t a bles ba sed on P RE P A In for m a t ion con t a in ed in a Repor t , bu t n o BDO's
r ecom m en da t ion s, con clu sion s or fin din gs. H owever , P RE P A m u st a ssu m e sole
r espon sibilit y for t h e con t en t s of t h ose docu m en t s a n d n o r efer t o BDO or a n y ot h er
BDO's in con n ect ion wit h t h em . Th is pr ovision does n ot a ffect P RE P A's a bilit y t o
cir cu la t e Repor t s in t er n a lly. P RE P A m a y n ot r ely on a n y dr a ft Repor t . BDO sh a ll n ot be
r equ ir ed t o u pda t e a n y fin a l Repor t for cir cu m st a n ces of wh ich BDO becom es a wa r e, or
even t s occu r r in g, a ft er it s deliver y.——————————————————————
Ar t icle 5. Respon sibilit y in r ela t ion wit h Advisor y Ser vices


P a ge 27
5.1 P RE P A (a n d a n y ot h er s for wh om Advisor y Sen /ices a r e pr ovided) m a y n ot
r ecover fr om BDO, in con t r a ct or t or t , u n d er s t a t u e or ot h er wis e, a n y
con sequ en t ia l, or specia l da m a ges in con n ect ion wit h cla im s a r isin g ou t of t h is
Con t r a ct or ot h er wise r ela t in g t o t h e Advisor y Ser vices, a n d r ela t ed t o loss of pr ofit ,
da t a or goodwill, wh et h er or n ot t h e lik elih ood of su ch loss or da m a ge wa s
con t em pla t ed.-
5.2 P RE P A m a y n ot r ecover fr om BDO, in Con t r a ct or t or t , u n der st a t u t e or ot h er wise,
a ggr ega t e da m a ges in excess of t h e m a xim u m pr ofession a l fees for t h e Advisor y
Ser vices in con n ect ion wit h cla im s a r isin g ou t of t h is Con t r a ct or ot h er wise r ela t in g
t o t h e Advisor y Ser vices. Th is lim it a t ion will n ot a pply t o losses ca u sed by BDO
fr a u d, n egligen t willfu l m iscon du ct or t o t h e ext en t pr oh ibit ed by a pplica ble la w or
pr ofession a l r egu la t ion s.-
5.3 P RE P A sh a ll m a k e a n y cla im r ela t in g t o t h e Advisor y Ser vices or ot h er wise u n der
t h is Con t r a ct n o la t er t h a n on e yea r a ft er it beca m e a wa r e (or ou gh t r ea son a bly t o
h a ve becom e a wa r e) of t h e fa ct s givin g r ise t o a n y a lleged su ch cla im a n d in a n y
even t , n o la t er t h a n t wo yea r s a ft er t h e com plet ion of t h e Advisor y Ser vices. Th is
lim it a t ion will n ot a pply t o t h e ext en t pr oh ibit ed by a pplica ble la w or pr ofession a l
5.4 To t h e fu llest ext en t per m it t ed by a pplica ble la w a n d pr ofession a l r egu la t ion s,
P RE P A sh a ll in dem n ify BDO a n d ot h er BDO's E n t it ies a ga in st a ll cla im s by t h ir d
pa r t ies (in clu din g P RE P A a ffilia t es a n d a t t or n eys) a n d r esu lt in g lia bilit ies, losses,
da m a ges, cost s a n d expen ses (in clu din g r ea son a ble ext er n a l a n d in t er n a l lega l
• ^ .',- '/• • '
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Accou n t in g a n d Ad vis or y S er vices BDO P u er t o Rico, P .S .C. '"^
P a ge 28
cost s) a r isin g ou t of t h e t h ir d pa r t y's u se of or r elia n ce on a n y Repor t (in clu din g
Ta x Advice) disclosed by P RE P A or a t P RE P A's r equ est . -
5.5 BDO m a y u se da t a , soft wa r e, design s, u t ilit ies, t ools, m odels, syst em s a n d ot h er
m et h odologies a n d k n ow-h ow (Ma t er ia ls) t h a t it own s or licen ses in per for m in g
t h e Advisor y Ser vices. N ot wit h st a n din g t h e deliver y of a n y Repor t s, BDO will
r et a in a ll in t ellect u a l pr oper t y r igh t s in t h e Ma t er ia ls (in clu din g a n y im pr ovem en t s
or k n owledge developed wh ile per for m in g t h e Advisor y Ser vices), a n d in a n y
wor k in g pa per s com plied in con n ect ion wit h t h e Advisor y Ser vices (bu t n ot
P RE P A's In for m a t ion r eflect ed in t h em ).—————————————————
5.6 U pon pa ym en t for Advisor y Ser vices a n d su bject t o t h e ot h er t er m s of t h is
Con t r a ct , P RE P A m a y u se t h e Repor t s r ela t in g t o t h ose Advisor y Ser vices, a s
well a s a n y Ma t er ia ls own ed by BDO t h a t a r e in clu ded t h er ein , solely t o t h e ext en t
n ecessa r y t o u se t h e Repor t s.——
Ar t icle 6. Con fiden t ia l In for m a t ion
E xcept a s ot h er wise per m it t ed by t h is Con t r a ct , n eit h er pa r t y m a y disclose t o t h ir d
pa r t ies t h e con t en t s of t h is Con t r a ct or a n y in for m a t ion pr ovided by or on beh a lf of t h e
ot h er t h a t ou gh t r ea son a bly t o be t r ea t ed a s con fiden t ia l a n d/or pr opr iet a r y. E it h er pa r t y
m a y, h owever , disclose su ch in for m a t ion t o t h e ext en t t h a t it :
a . is or becom es pu blic ot h er t h a n t h r ou gh a br ea ch of t h is Con t r a ct ,——————
b. is su bsequ en t ly r eceived by t h e r ecipien t fr om a t h ir d pa r t y wh o, t o t h e r ecipien t 's
k n owledge, owes n o obliga t ion of con fiden t ia lit y t o t h e disclosin g pa r t y wit h
r espect t o t h a t in for m a t ion , -

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Accou n t in g a n d Ad vis or y S er vices BDO P u er t o Rico, P .S .C. ^ <^

^
P a ge 29
c. wa s k n own t o t h e r ecipien t a t t h e t im e of disclosu r e or is t h er ea ft er cr ea t ed
t'
d. is disclosed a s n ecessa r y t o en for ce t h e r ecipien t 's r igh t s u n der t h is Con t r a ct , or
e. m u s t be d is clos ed u n d er a p p lica ble la w, lega l p r oces s or p r ofes s ion a l
r egu la t ion s.-
Bot h P a r t ies m a y u se elect r on ic m edia t o cor r espon d or t r a n sm it in for m a t ion a n d su ch
u se will n ot in it self con st it u t e a br ea ch of a n y con fiden t ia lit y obliga t ion s u n der t h is
Wit h r espect t o a n y Advisor y Ser vices, if U .S. Secu r it ies a n d E xch a n ge Com m ission
a u dit or in depen den ce r equ ir em en t s a pply t o t h e r ela t ion sh ip bet ween P RE P A or a n y of
it s a ssocia t ed en t it ies a n d a n y BDO's, P RE P A r epr esen t s, t o t h e best of it s k n owledge,
a s of t h e da t e of t h is Con t r a ct a n d a s of t h e da t e of ea ch St a t em en t of Wor k h er eu n der ,
t h a t n eit h er P RE P A n or a n y of it s a ffilia t es h a s a gr eed, eit h er or a lly or in wr it in g, wit h
a n y ot h er a dvisor t o r est r ict P RE P A's a bilit y t o disclose t o a n yon e t h e t a x t r ea t m en t or
t a x st r u ct u r e of a n y t r a n sa ct ion t o wh ich t h e Advisor y Ser vices r ela t e. A Con t r a ct of
t h is k in d cou ld im pa ir BDO's in depen den ce a s t o P RE P A's ser vices or t h a t of a n y of it s
a ffilia t es, or r equ ir e specific t a x disclosu r e a s t o t h ose r est r ict ion s. Accor din gly, P RE P A
a gr ees t h a t t h e im pa ct of a n y su ch Con t r a ct is it s r espon sibilit y.-
Ar t icle 7. U se of Logos a n d Tr a dem a r k s
N eit h er P a r t y m a y u se or m a y r efer en ce t o t h e ot h er 's n a m e, logo or t r a dem a r k s
pu blicly wit h ou t t h e ot h er 's pr ior wr it t en con sen t .———

t .^
P a ge 30
Ar t icle 8. Con t r a ct for Advisor y Ser vices
Th is Con t r a ct con st it u t es t h e en t ir e Con t r a ct bet ween P RE P A a n d BDO a s t o t h e
Advisor y Ser vices a n d t h e ot h er m a t t er s in cover s, a n d su per sedes a ll pr ior Con t r a ct s,
u n der st a n din gs a n d r epr esen t a t ion s wit h r espect t h er et o, in clu din g a n y con fiden t ia lit y
Con t r a ct s pr eviou sly deliver ed. In a ddit ion , a n y policy, pr ot ocol, Con t r a ct (ot h er t h a n
t h is Con t r a ct ) or ot h er in st r u m en t , in wh a t ever for m , im posed a t a n y t im e t h a t pu r por t s
t o obliga t e BDO, a n y ot h er Au dit or 's or a n y Au dit or 's P er son wit h r espect t o be u se of
Clien t In for m a t ion sh a ll be void a n d of n o fu r t h er effect , a n d P RE P A sh a ll n ot seek t o
en for ce a n y su ch obliga t ion .-—————————————————————————
Ar t icles - Risk Ma n a gem en t
Th e docu m en t a t ion for t h is en ga gem en t is t h e pr oper t y of BDO. In t h e even t BDO is
r equ est ed pu r su a n t t o su bpoen a or ot h er lega l pr ocess t o pr odu ce it s docu m en t a t ion
a n d/or t est ify in r ela t ion t o a n y sen /ices u n der t h is en ga gem en t , in ju dicia l or
a dm in ist r a t ive pr oceedin gs in wh ich BDO is n ot a pa r t y, P RE P A sh a ll r eim bu r se BDO a t
st a n da r d billin g r a t es for it s pr ofession a l t im e a n d expen ses, in clu din g r ea son a ble
a t t or n ey's fees, in cu r r ed by BDO in r espon din g t o su ch r equ est s. ——
BDO m a y be r equ est ed t o m a k e cer t a in docu m en t a t ion a va ila ble t o r egu la t or s pu r su a n t
t o a u t h or it y pr ovided by la w or r egu la t ion . If r equ est ed, a ccess t o su ch docu m en t a t ion
will be pr ovided u n der t h e su per vision of BDOs" pr ofession a ls, P RE P A sh a ll a lso
r eim bu r se BDO a t st a n da r d billin g r a t es for it s pr ofession a l t im e a n d expen ses,
in clu din g r ea son a ble a t t or n ey's fees, in cu r r ed by BDO in r espon din g t o su ch r equ est s.-
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Accou n t in g a n d Ad vis or y S en /ices BDO P u er t o Rico, P .S .C. -; '.-^ -:j .''

P a g e 3 1 ~ ' --/
Ar t icle 10-Com plet e Con t r a ct
Th is Con t r a ct is t h e com plet e Con t r a ct bet ween t h e pa r t ies wit h r espect t o t h e su bject
m a t t er h er eof a n d fu lly su per sedes a n y a n d a ll pr ior Con t r a ct s a n d u n der st a n din gs
bet ween t h e pa r t ies h er et o per t a in in g t o t h e su bject m a t t er h er eof, in clu din g, wit h ou t
lim it a t ion : t h e pr oposa l a n d a n y docu m en t a t ion r ela t ed t h er et o in clu din g t h e
E n ga gem en t Let t er s, a n d t h e Ter m s a n d Con dit ion s of E n ga gem en t -
In ca se of discr epa n cy or in t h e even t of con flict a m on g t h e t er m s a n d con dit ion s of t h e
Con t r a ct a n d t h e E xh ibit s, t h e t er m s a n d con dit ion s of t h e Con t r a ct sh a ll pr eva il.———
Ar t icle 11- Ma n da t or y Cla u ses P u r su a n t Act 3-2017 a n d Cir cu la r Let t er 141-17
da t ed J a n u a r y 30,2017
11.1 Bot h pa r t ies a ck n owledge a n d a gr ee t h a t t h e con t r a ct ed ser vices h er ein m a y be
pr ovided t o a n ot h er en t it y of t h e E xecu t ive Br a n ch wh ich en t er s in t o a n in t er a gen cy
Con t r a ct wit h P RE P A or by dir ect disposit ion of t h e Secr et a r ia t of Gover n m en t . Th ese
ser vices will be per for m ed u n der t h e sa m e t er m s a n d con dit ion s in t er m s of h ou r s of
wor k a n d com pen sa t ion set for t h in t h is Con t r a ct . F or t h e pu r pose of t h is cla u se, t h e
t er m "en t it y of t h e E xecu t ive Br a n ch " in clu des a ll a gen cies of t h e Gover n m en t of
P u er t o Rico, a s well a s pu blic in st r u m en t a lit ies, pu blic cor por a t ion s a n d t h e Office of
11.2 Th e Secr et a r ia t of t h e E xecu t ive Br a n ch sh a ll h a ve t h e power t o t er m in a t e t h is
Con t r a ct a t a n y t im e.——
-^ \ ..•
Accou n t in g a n d Advisor y Ser vices BDO P u er t o Rico, P .S.C,

P a ge 32
IN WITN E SS WH E RE OF , t h e pa r t ies h er et o h a ve execu t ed t h is Con t r a ct a s of
-— Decem ber 7, 2017.
BDO P UE RTO RICO, P .S.C P UE RTO RICO E LE CTRIC P OWE R

AUTHORITY
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AND BDO P UE RTO RICO, P .S.C.
ACCOUNTING AND ADVISORY SE RVICE S CONTRACT
E XH IBIT A, Accou n t in g Ser vices
BDO pr ofession a l per son n el sh a ll per for m t h e followin g Accou n t in g Ser vices, bu t n ot
lim it ed t o, u n der t h e dir ect su per vision of P RE P A's m a n a gem en t , in r ela t ion t o t h e
Accou n t in g a n d Advisor y Ser vices Con t r a ct :
1. An a lyze a n d eva lu a t e a ccou n t s r ela t ed t o t h e P u er t o Rico E lect r ic P ower Au t h or it y

(P RE P A) a ccou n t in g a n d bu dget syst em .———-
2. P r epa r e a n d r ecor d (en t er ) in Or a cle a ccou n t in g syst em jou r n a l en t r ies.-—————
3. P r epa r e m on t h ly fin a n cia l r epor t s.————————————————————-
4. An a lyze a n d eva lu a t e a ct ivit ies n ecessa r y t o con for m t h e a n n u a l bu dget a n d or
5. Coor din a t e a n d eva lu a t e a ccou n t in g a n d bu dget t r a n sa ct ion s, cost s a n a lysis,

a ccou n t t r a n sfer en ces, a n a lysis of m on t h ly fin a n cia l r epor t s, pu r su a n t t o t h e fa ir a n d
r elia ble pr esen t a t ion of P RE P A's fisca l a n d fin a n cia l pr esen t a t ion .-————————
6. Ga t h er in g of da t a a n d pa r t icipa t e in r esea r ch a n d st u dies for t h e dr a ft in g a n d

u pda t in g of bu dget a n d a ccou n t in g r epor t s.——————————————————
7. An a lyze a n d a u dit bu dget a n d cost pr oject s a n d a pplies cor r ect ive m ea su r e a n d

a dju st m en t s a s per r equ est by t h e In t er n a l Au dit Office a n d t h e St a t e Com pt r oller
8. P a r t icipa t e a n d con t r ibu t e in wor k pr ocesses in or der t o im pr ove t h e efficien cy a n d

qu a lit y of t h e Bu dget a n d or E con om ic a n d An a lysis Depa r t m en t .————————
9. P r om pt ly a t t en d issu es a ssign ed by m a n a gem en t a n d k eep m a n a gem en t in for m ed.-
10. U t ilize, bu t n ot lim it ed, t o Micr osoft Office a pplica t ion s a n d Or a cle a ccou n t in g
11. P er for m a n y bu dget a n d a ccou n t in g t a sk s, a s a ssign ed by m a n a gem en t ."————

E XH IBIT B, Advisor y Ser vices
BDO sh a ll per for m t h e followin g Advisor y Ser vices, bu t n ot lim it ed t o, in r ela t ion t o t h e
Accou n t in g a n d Advisor y Sen /ices Con t r a ct :
Th e Advisor y Sen /ices sh a ll con sist of a ssist in g P RE P A in , a m on g ot h er m a t t er s, t o

a ssess, develop a n d pr epa r e fin a n cia l a n d oper a t ion a l r epor t s t o m eet t h e r equ ir em en t s
of t h e F isca l P la n ("P la n ") a ppr oved by t h e P u er t o Rico Over sigh t , Ma n a gem en t , a n d
E con om ic St a bilit y Act (P ROME SA), in or der t o en h a n ce fisca l visibilit y. Su ch r epor t s
sh a ll be r ela t ed t o t h e followin g:
o Mon t h ly, Qu a r t er ly, Yea r -t o-Da t e F in a n cia l Resu lt s

o Com pa r e a n d a n a lyze t h e P la n P r oject ion s wit h a ct u a l r esu lt s
o Com pa r e a n d a n a lyze P la n P r oject ion k ey a ssu m pt ion s
o An y ot h er a ct ivit y or r epor t t h a t t h e P RE P A deem ed n ecessa r y in
con n ect ion t o P ROME SA
Also, BDO sh a ll per for m t h e followin g:
1. Assist P RE P A in iden t ifyin g a n d pr ovidin g a lt er n a t ives t o m a n a ge r oa dblock s.-
2. Assist t h e P RE P A in iden t ifyin g a n d im plem en t in g com plia n ce m ilest on es a n d

ot h er m ea su r em en t st r a t egies t o a llow m a n a gem en t t o t im ely iden t ify pot en t ia l
t r en ds t h a t a ffect t h e com plia n ce wit h t h e pr oposed fin a n cia l a n d oper a t ion a l
3. BDO's a ssist a n ce will con sist of m a n a gin g t h e pr oject r ela t ed t o t h e a ssessm en t ,

r epor t in g, developm en t , a n d su bsequ en t m on t h ly r epor t in g pr oject s r equ ir ed by
t h e P la n . Also, t h e P RE P A will pr ovide t h e per son n el a n d h u m a n ca pit a l, wit h
su fficien t k n owledge a n d u n der st a n din g, t o per for m t h e a ct ivit ies.——
4. Th e P RE P A per son n el wor k in g on t h is pr oject , will u se a ccou n t in g a n d ot h er

r eleva n t in for m a t ion a lr ea dy r ecor ded in t h e P RE P A's a ccou n t in g a n d ot h er
da t a ba ses. BDO will n ot in st r u ct su ch per son n el t o a lt er or ot h er wise r ecor d
t r a n sa ct ion s or ot h er in for m a t ion in t h e P RE P A's a ccou n t in g or oper a t ion a l da t a
ba ses. It is r ecogn ized a n d a ccept ed by t h e P RE P A, t h a t t h e fin a l a ppr oved
for m a t a n d con t en t s of a ll r epor t s - in clu din g r epor t in g r equ ir em en t s - r est s wit h
t h e m a n a gem en t of t h e P RE P A.——————————————————————
5. BDO's r espon sibilit y will be t o a ssist a n d lea d t h e P RE P A's per son n el a ssign ed
for t h is pr oject in t h e design of su ch r epor t s, a s deem ed n ecessa r y, t o m eet t h e
P RE P A's r espon sibilit ies wit h t h e P ROME SA r equ ir em en t s.— —————————
E st a do Libr e Asocia do de P u er t o Rico

OF ICIN A DE L CON TRALOR
P O Box 366069, Sa n J u a n P R 00936.6069
Cer t ifico qu e el Con t r a t o N u m .^ e^ /^ '-'^ u 7VI es cop ia fiel y exa ct a a la
cop ia qu e obr a en n u es t r os a r ch ivos . E l m is m o con s t a d e .5 '-7' p a gin a s .
Da d a en S a n J u a n , P u er t o Rico, h oy _/_d e /VI U n ''^ 0 d e A?'/^ /.
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P UE RTO RICO E LE CTRIC P OWE R AVTH OMTy AND H ORNE F E DE RAL LLC
P ROF E SSIONAL SE RVICE S CONTRACT
AP P E AR
As pa r t y of t h e F ir st P a r t ; Th e P U E RTO RICO E LE CTRIC P OWE R

AUTH ORTTii'' (P RE P A), a pu blic cor por a t ion a n d gover n m en t in st r u m en t a lit y of t h e
Com m on wea lt h of P u er t o Rico, cr ea t ed by Act 83 of Ma y 2, 1942, a s a m en ded,
r epr esen t ed in t h is a ct by it s Act in g E xecu t ive Dir ect or / m ist er J u st o Lu is Gon za lez
Tor r es, of lega l a ge, m a r r ied/ pr ofession a l en gin eer , a n d r esiden t of J u a n a Dia z/
P u er t o Rico.
As a pa r t y of t h e Secon d P a r t : H ORNE F E DE RAL LLC (t h e "Con t r a ct or " a n d,
collect ively wit h P RE P A, t h e "P a r t ies"), a lim it ed lia bilit y com pa n y or ga n ized a n d
exist in g u n der t h e la ws of t h e St a t e of Dela wa r e, wit h offices a t Wa sh in gt on , D.C,/
h er em r epr esen t ed by it s P a r t n er In Ch a r ge, m a r r ied, of lega l a ge, S. N eil F or bes,
execu t ive a n d a r esiden t of Ma dison Cou n t y, Mississippi, du ly a u t h or ized t o a ppea r
in r epr esen t a t ion of t h e Con t r a ct or by Resolu t ion da t ed Decem ber 14, 2017.
WTTNESSETH
WH E RE AS, P RE P A, by vir h ie of it s en a blin g a ct (Act 83), h a s t h e a u t h or it y t o
en ga ge t h ose pr ofession a l, t ech n ica l a n d con su lt in g ser vices n ecessa r y a n d
con ven ien t t o t h e a ct ivit ies/ pr ogr a m s, a n d oper a t ion s ofP RE P A;
WH E RE AS/ a s est a blish ed in Sect ion 205 (1) of Act 83 of Ma y 2, 1942,
a ll pu r ch a ses a n d con t r a ct s for su ppU es or ser vices, except per son a l ser vices, m a de
by P RE P A, in clu din g it s ca pit a l con st r u ct ion con t r a ct s, sh a ll be m a de by ca llin g for
bids wit h su fficien t t im e befor e t h e da t e t h e bids a r e open ed so t h a t P RE P A ca n
gu a r a n t ee pr oper k n owledge a n d a ppea r a n ce of com pet it ive bidder s.
WH E RE AS, by vir t u e of Resolu t ion No. 4573 of Decem ber 20, 2017, P RE P A's
Boa r d of Dir ect or s a u t h or ized t h e Act in g E xecu t ive Dir ect or t o en t er in t o t h is
Agr eem en t t o per for m a fin a n cia l r isk a ssessm en t ba sed on det a iled r eview of a ll
P RE P A's r espon se expen dit u r es, in clu din g bu t n ot lim it ed t o, r eview of exist in g
execu t ed con t r a ct s, in voicin g m ech a n ism s, cu r r en t com plia n ce wit h Com m on wea lt h
a n d feder a l pr ocu r em en t r egu la t ion s/ a n d cu r r en t com plia n ce wit h feder a l st a t u t es
a n d r egu la t ion s on disa st er r espon se a n d r eim bu r sem en t . H om e will a lso con du ct
a n a ssessm en t of over a ll con t r a ct m a n a gem en t con t r ols a n d policies a n d will
in t er fer e wit h key P RE P A P er son n el on t h e fin din gs in r isk a ssessm en t . Th e Boa r d
of Dir ect or a u t h or ized a m a xim u m a m ou n t of $1,500,000.
WH E RE AS, P RE P A desir es t o en t er in t o t h is Con t r a ct wit h t h e Con t r a ct or for
t h e per for m a n ce of t h e Ser vices.
WH E RE AS, t h e Con t r a ct or st a t es t h a t it is r ea dy, willin g a n d a ble t o pr ovide
t h e Ser vices pu r su a n t t o t h e t er m s a n d con dit ion s set for t h h er ein .
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NOW TH E RE F ORE , in con sider a t ion of t h e m u t u a l pr om ises a n d t h e t er m s

a n d con dit ion s set for t h h er ein , P RE P A a n d t h e Con t r a ct or a gr ee a s follows:
L T?E OF CON TRACT
A. Con h -a ct Typ6; Th is con t r a ct is a Debr is Clea r a n ce or E m er gen cy Wor k

con h -a ct , a s defin ed in t h e F eder a l E m er gen cy Ma n a gem en t Agen cy ("F E MA")
P u blic Assist a n ce P r ogr a m a n d P olicy Gu ide F P 104-009-2/Apr il 2017, wh ich is
a va ila ble a t : h t t ps://www.fem a .gov/m edia libr a r y/a sset s/docu m en t s/111781#.
B. Scope of Ser vices; Th e Con t r a ct or will pr epa r e a fin a n cia l r isk a ssessm en t
ba sed on det a iled r eview of a U P RE P A's r espon se expen dit u r es/ in clu din g bu t
n ot lim it ed t o, r eview of exist in g execu t ed con t r a ct s, in voicin g m ech a n ism s,
cu r r en t com p lia n c& wit h Com m on wea lt h a n d fed er a l p r ocu r em en t
r egu la t ion s, a n d cu r r en t com plia n ce wit h feder a l st a t u t es a n d r egu la t ion s on
disa st er r espon se a n d r eim bu r sem en t . Th e Con t r a ct or will a lso con du ct a n
a ssessm en t of over a ll con t r a ct m a n a gem en t con t r ols a n d policies a n d will
in t er fer e wit h k ey P RE P A P er son n el on t h e fin din gs in r isk a ssessm en t . Th e
Con t r a ct or will wor k wit h P RE P A t o develop a pla n t o a ddr ess a n y it em s
n ot ed in t h e r is k a s s es s m en t n eces s a r y t o in s u r e com p lia n ce wit h
Com m on wea lt h a n d feder a l pr ocu r em en t r egu la t ion s/ a n d cu r r en t com plia n ce
wit h .feder a l st a t u t es a n d r egu la t ion s on disa st er r espon se a n d r eim bu r sem en t .
An Act ion P la n wffl be gen er a t ed t o pr ovide a r oa d m a p in a ssu r in g pr oper
r eim bu r sem en t a n d issu e iden t ifica t ion r ela t ed t o t h e disa st er decla r a t ion a n d
wiU ser ve t o m it iga t e r isk s a ssocia t ed wit h t h ir d pa r t y a u dit s r ela t ed t o t h e
disa st er r espon se. Th e Con t r a ct or will in t er fa ce wit h k ey P RE P A P er son n el in
developm en t of t h e Act ion P la n befor e a fin a l docu m en t is issu ed. Also, t h e
Con t r a ct or will im plem en t t h e a gr eed u pon Act ion pla n in cooper a t ion wit h
P RE P A a ccou n t in g per son n el r ela t in g t o fin a n cia l con t r ols/ in voicin g a n d t im e
m a n a gem en t p r ot ocols , a n d con t r a ct u a l con t r ols t h a t a r e cr it ica l t o
r eu n bu r sem en t a n d illu st r a t ive of fidu cia r y r espon sibilit y a n d wUI wor k wit h
P RE P A P er son n el t o develop policies a n d pr ocedu r es t h a t em body best
pr a ct ice in disa st er r espon se a n d r ecover y com plia n ce. Th e Con t r a ct or wffl
pr ovide on -sit e st a ffin g t o su ppor t P RE P A's r ecover y, Th ese in dividu a ls will
pr ovide r esou r ces for P RE P A in in t er fa cin g wit h t h eir con t r a ct or s a s weU a s
wit h ot h er gover n m en t a l a n d pr iva t e sect or en t it ies t o en su r e fin a n cia l
com plia n ce a n d pr oper r ecor d docu m en t a t ion a n d r et en t ion for fu t u r e a u dit s,
Th e Con t r a ct or will be r ea dy t o t a k e r em edia l m ea su r es t o a ssu r e com plia n ce
a n d r ecover y t o a ssu r e com plia n ce a n d r ecover y a s dr cu m st a n ces dict a t e a n d
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will be pr esen t t o pr ovide t ech n ica l exper t ise on disa st er r espon se a n d

r ecover y t o a ssu r e com plia n ce a n d r eim bu r sem en t / t h u s a llowin g P RE P A
em ployees t o u t ilize t h eu own exper t ise in a r ea s of com m on a n d im m edia t e
con cer n for t h e Com m on wea lt h , (t h e "Ser vices").
C. Addit ion a l P r ovision s r eea r din e t h e Ser vices:
1. An y a n d a ll ch a n ges a n d/or m odifica t ion s t o t h e scope of t h e Ser vices

sh a ll be in wr it in g a n d m u st be sign ed by bot h pa r t ies.
2. Th e Con t r a ct or r epr esen t s t h a t it h a s or sh a ll obt a in , or ca u se fo be

obt a in ed, a ll per son n el n ecessa r y t o u n der t a k e a n d pr ovide t h e Ser vices
in a m a n n er sa t isfa ct or y t o P RE P A.
3, Th e Con t r a ct or m a y n ot su bcon t r a ct a n y of t h e Ser vices t h a t it h a s

com m it t ed t o per for m or pr ovide pu r su a n t t o t h is Con t r a ct wit h ou t t in e
pr ior wr it t en a ppr ova l of t h e E xecu t ive Dir ect or of P RE P A or a n y of it s
a u t h or ized r epr esen t a t ives . Su ch con sen t t o su bcon t r a ct sh a ll n ot
r elieve t h e Con t r a ct or of it s fu U r espon sibilit ies u n der t h is Con t r a ct .
Con sen t t o t h e su bcon t r a ct in g of a n y pa r t of t h e ser vices sh a ll n ot be
con st r u ed t o be a n a ppr ova l of sa id su bcon t r a ct or of a n y of it s t er m s, bu t
sh a ll oper a t e on ly a s a n a ppr ova l of t h e Con t r a ct or 's r equ est for t h e
m a k in g of a s u bcon t r a ct bet ween t h e Con t r a ct or a n d it s ch os en
su bcon t t a ct or (h er ein a ft er a "Su bcon t r a ct or "). Th e Con t r a ct or sh a ll be
r espon sible for a ll ser vices per for m ed by t h e Su bcon t r a ct or a n d a U su ch
ser vices sh a U con for m t o t h e pr ovision s of t h is Con t r a ct ,
II. TE RM OF CON TRACT
A. Teim . Th is Con t r a ct sh a ll be in effect fr om fh e da t e of it s execu t ion u n t il

J u n e 30, 2018 fTh e Con t r a ct P er iod)1. Th e Con t r a ct m a y be ext en ded/ a t
' P u r su a n t t o Ar t icle 3(f) of Act 237-2004, gover n m en t en t it ies m a y n ot gr a n t con t r a ct s t h a i cover m or e t h a n a

F isca l yea r so a s n ot t o en cu m ber fu t u r e bu dget s. A con t r a ct m a y cover t wo (2) fisca l yea r s, bu t it sh a ll be
lim it ed t o t welve (12) m on t h s a n d in clu de a cla u se speciiyin g t h a t it sh a ll t er m in a t e wit h t h e close of t h e yea r
a n d t h a t it sh a ll be ext en ded for t welve (12) ca len da r m on t h s, pr ovided t h e pa r t ies a gr ee a n d t h a t t h er e a r e fu n ds
a va ila ble in t h e a ppr opr ia t e bu dget a r y it em . As a n except ion , m u lt i-a n n u a l gover n m en t con t r a ct s sh a ll be
a llowed wh en t h e ser vice ca n be obt a in ed m or e efficien t ly a n d econ om ica lly a n d wh en t h ey a r e essen t ia l t o
gu a r a n t ee t h e pu blic ser vice.
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t h e exclu sive opt ion of P RE P A, for a ddit ion a l a n n u a l fisca l per iods su bject
t o t h e a va ila bilit y of fu n ds a n d pr eviou s a u t h or iza t ion of t h e Secr et a r ia t of
t h e E xecu t ive Br a n ch , E it h er pa r t y sh a ll h a ve t h e r igh t t o t er m in a t e t h is
Con t r a ct , a t a n y m om en t / by pr ovidin g t h e ot h er pa r t y t h ir t y (30) da ys
wr it t en n ot ice by r egist er ed m a il/ r et u r n r eceipt r equ est ed, or over n igh t
expr ess m a il. If n ot ice is given / t h is Con t r a ct sh a U t er m in a t e u pon t h e
expir a t ion of t h ir t y (30) da ys a n d P RE P A sh a ll be obliga t ed t o pa y a ll fees
a n d exp en s es in cu r r ed u p t o t h e d a y of effect ive t er m in a t ion , in
a ccor da n ce wit h t h e t er m s of t h is Con t r a ct . Th e r igh t s, du t ies a n d
r espon sibilit ies of t h e P a r t ies sh a ll con t in u e in fu ll for ce a n d effect du r in g
t h e t h ir t y (30) da y n ot ice per iod. Con t r a ct or sh a ll h a ve n o fu r t h er r igh t t o
com pen sa t ion except for wh a t h a s been a ccr u ed for ser vices r en der ed
u n der t h is Agr eem en t u n t il sa id da t e of effect ive t er m in a t ion .
m . COMP E N SATION AN D P AYME N T
As com pen sa t ion for ser vices r en der ed u n der t h is Con t r a ct , P RE P A a gr ees a n d
Con t r a ct or a ccept s t h a t t h e t ot a l a m ou n t t o be pa id u n der t h is Con t r a ct sh a ll n ot
exceed On e Million F ive H u n dr ed Th ou sa n d U .S. Dolla r s ($1,500,000.00) (t h e
"Con t r a ct Am ou n t ")2. H owever , n ot h in g h er ein sh a ll pr eclu de t h e pa r t ies fr om
a g r e e i n g t o i n cr e a s e s a i d a m ou n t ,
P RE P A wiU on ly pa y for ser vices t h a t a r e eviden ced by a pr oper ly su bm it t ed
in voice for ser vices r en der ed. N ot wit h st a n din g t h e for egoin g, a n y in cr ea se t o t h e
Agr eem en t Am ou n t sh a ll be eviden ced in wr it in g a n d sign ed by bot h Con t r a ct or
a n d P RE P A. P RE P A will n ot be r equ ir ed t o m a k e a dva n ce pa ym en t s for a n y
ser vice t o be r en der ed by Con t r a ct or u n der t h is Agr eem en t . Con t r a ct or sh a U
pr om pt ly n ot ify P RE P A wh en t h e bUlin g u n der t h e pr esen t Agr eem en t a m ou n t s
t o seven t y five per cen t (75%) of t h e Agr eem en t Am ou n t . On ce t h is n ot ifica t ion
h a s been issu ed. Con t r a ct or , in coor din a t ion wit h P RE P A, wiU en su r e t h a t n o
ser vices will be r en der ed in excess of fh e Agr eem en t Am ou n t / except wh en a
wr it t en a m en dm en t is a gr eed u pon by bot h P a r t ies. In a ddit ion , Con t r a ct or sh a ll
pr esen t a r ea son a bly it em ized H st of t h e r em a in in g billa ble wor k t h a t is in
pr ogr ess u n der t h e Agr eem en t . Appen dix A a t t a ch ed h er et o pr ovides a sch edu le
of t h e per son n el a ssign ed t o pr ovide t h e Ser vices.
2 P u r su a n t t o Ar t icle 18 of Act 3-2017, a ll a gr eem en t s for pr ofession a l or a cqu ir ed ser vices in excess of
$10,000.00 m u st be a ppr oved id wr it in g by t h e Gover n or or t h e per son t o wh om h e delega t es su ch a u t h or it y.
An y a gr eem en t s execu t ed in con t r a ven t ion of t h is r equ ir em en t s sh a ll be n u ll.
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All pa ym en t s per for m ed u n der t h is Agr eem en t wiU be ch a r ged t o P RE P A's

bu dget a ccou n t n u m ber 01-1747-XXXX-550-474.
Con t r a ct or sh a ll su bm it m on flily in voices wit h in t h e fir st t h ir t y (30) da ys

followin g t h e per iod in voiced t h a t will in clu de a descr ipt ion of t h e ser vices r en der ed
a n d t h e n u m ber of h ou r s spen t by ea ch per son . E a ch in voice for pr ofession a l
ser vices sh a ll be it em ized a n d m u st be du ly cer t ified by a n a u t h or ized r epr esen t a t ive
of Con t r a ct or . Con t r a ct or sh a ll a lloca t e a n y in voiced fees bet ween ; (i) a ct ivit ies
u n der t a k en ou t side of P u er t o Rico; a n d (ii) t h ose r ela t in g t o a ct ivit ies u n der t a k en
wit h in P u er t o Rico,
P RE P A will r eview t h e m voices wit h in t h ir t y (30) da ys of r eceipt / a n d if t h ey

a r e in com plia n ce wit h t h e r equ ir em en t s set for t h in t h is Con t r a ct , it wiU pr oceed
wit h pa ym en t . P a ym en t is du e u pon r eceipt of a va lid in voice. P RE P A r eser ves t h e
r igh t t o con du ct t h e a u dit s it deem s n ecessa r y, a n d it will n ot be su bject t o fin a n ce
ch a r ges r ega r din g in voice pa ym en t s su bject t o a n a u dit ,
In voices m u st a lso in clu de a wr it t en a n d sign ed cer t ifica t ion st a t in g t h a t n o

officer or em ployee of P RE P A/ a n d t h eir r espect ive su bsidia r ies or a ffilia t es, will
per son a lly der ive or obt a in a n y ben efit or pr ofit of a n y kin d fr om t h is Con t r a ct , wit h
t h e a ck n owledgm en t t h a t in voices t h a t do n ot in clu de t h is cer t ifica t ion wiU n ot be pa id.
Th is cer t ifica t ion m u st r ea d a s follows:
"We cer t ify u n der pen a lt y of n u llit y t h a t n o pu blic ser va n t of t h e

P u er t o Rico E lect r ic P ower Au t h or it y/ t h eir r es p ect ive
su bsidia r ies or a ffilia t es/ will der ive or obt a in a n y ben efit or
pr ofit of a n y km d fr om t h e con t r a ch ia l r ela t ion sh ip wh ich is t h e
ba sis of t h is in voice. If su ch ben efit or pr ofit exist s/ t h e r equ ir ed
wa iver h a s been obt a in ed pr ior t o en t er in g in t o t h e Con t r a ct .
Th e on ly con sider a t ion t o be r eceived in exch a n ge for t h e
deliver y of goods or for ser vices pr ovided is t h e a gr eed-u pon
pr ice t h a t h a s been n egot ia t ed wit h a n a u t h or ized r epr esen t a t ive
of t h e P u er t o Rico E lect r ic P ower Au t h or it y. Th e t ot a l a m ou n t
sh own on t h is in voic&is t r u e a n d cor r ect . Th e ser vices h a ve been
r en der ed/ a n d n o pa ym en t h a s been r eceived."
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Con t ca ct or a gr ees t o su bm it ba n k a ccou n t wir in g in st r u ct ion s t o P RE P A in

or der t o fa cilit a t e pa ym en t by m ea n s of elect r on ic t r a n sfer .
IV. RE IMBURSABLE E XP E NSE S
P RE P A sh a U r eim bu r se Con t r a ct or for ou t of pock et expen ses in cu r r ed in

pr ovidin g t h e Ser vices, su bject t o t h e t er m s of t h is Con t r a ct . As est a blish ed in
Appen dix below, r eu n bu r sa ble expen ses sh a ll n ot exceed eigh t per cen t (8%) of t h e
Agr eem en t Am oim t a n d will be r eim bu r sed by P RE P A t h r ozigh t h e pr esen t a t ion of
a ccept a ble eviden ce for su ch expen ses. Reim bu r sem en t for a ir t r a vel expen ses is
r est r ict ed t o lowest a va ila ble econ om y a ir fa r es. P RE P A sh a U n ot pa y for t r a vel t im e,
pr ovided, h owever , t h a t Con t r a ct or per son n el m a y wor k wh ile t r a velm g, a n d su ch
t im e is com pen sa ble a s ot h er wise pr ovided u n der t h is Con t r a ct . P a ym en t for t r a vel
t im e sh a ll be m a de on ly if t h e in voice det a ils t h e ser vices r en der ed a n d t h e t im e
^ billed on ea ch m a t t er a s r equ ir ed in t h is Con t r a ct .
An y t r a vel a n d lodgm g^ expen se for wh ich a r eim bu r sem en t is r equ est ed sh a ll

be r ea son a ble a n d n ecessa r y, a n d a n y ext r a or din a r y t r a vel a n d lodgin g expen ses
sh a ll be a u t h or ized in wr it in g a n d in a dva n ce by P RE P A. P RE P A will n ot r eu n bu r se
exp en s es t h a t d o n ot com p ly wit h t h is p r ovis ion a n d Ap p en d ix U n d er n o
cu -cu m st a n ces wU l expen ses for a lcoh olic bever a ges be r eim bu r sed,
Th ir d-P a r t y Ven dor s a n d/or Ou t of P a cket E xpen ses: P RE P A sh a ll r eu n bu r se

Con t r a ct or for cost s t h a t m a y be in voiced t o Con t r a ct or by t h ir d pa r t y ven dor s for
goods or ser vices (r ela t ed, for exa m ple, t o t ele-com m u n ica t ion ser vices, r esea r ch ,
pr in t m a t er ia ls, cou r t r epor t er s/ or m essen ger s) n ecessa r y t o su ppor t t h e Ser vices
a n d pr ovided exclu sively for t h e ben efit of P RE P A.
V. CONF LICTS OF INTE RE ST.
A. Con t r a ct or a ck n owledges t h a t in execu t in g it s ser vices pu r su a n t t o t h is

Con t r a ct / it h a s a n obliga t ion of com plet e loya lt y t owa r ds P RE P A,
in clu din g h a vin g n o con flict of in t er est s. "Con flict of in t er est s" m ea n s
r epr esen t in g clien t s wh o h a ve or m a y h a ve in t er est s t h a t a r e con t r a r y t o
P RE P A/ bu t does n ot in clu de r en der in g ser vices t h a t a r e u n r ela t ed t o t h is
en ga gem en t .
Th is du t y in clu des t h e con t in u ed obliga t ion t o disclose t o P RE P A a ll
cir cu m st a n ces of it s r ela t ion s wit h clien t s a n d t h ir d pa r t ies wh ich wou ld
r esu lt in a con flict of in t er est , a n d a n y a dver se in t er est wlu ch wou ld
in flu en ce Con t r a ct or wh en execu t in g t h e Con t r a ct or wMIe it is in effect
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Th is con d u ct by on e of Con t r a ct or 's p a r t n er s , m em ber s , d ir ect or s ,

execu t ives, officer s, cler k s or em ployees sh a U be a t t r ibu t ed t o Con t r a ct or
for pu r poses of t h is pr oh ibit ion . Con t r a ct or sh a ll en dea vor t o a void even
t h e a ppea r a n ce of t h e exist en ce of a con flict of in t er est t h a t h a s n ot
ot h er wise been wa ived.
Con t r a ct or a ckn owledges t h e power of t h e E xecu t ive Dir ect or ofP RE P A t o

over see t h e en for cem en t of t h e pr oh ibit ion s est a blish ed h er ein . If t h e
E xecu t ive Dir ect or of P RE P A det er m in es t h e exist en ce or t h e em er gen ce of
con flict of in t er est wit h Con t r a ct or , h e sh a U in for m su ch fin din gs in
wr it in g a n d h is in t en t ion s t o t er m in a t e t h e Con t r a ct vdt h in a fift een (15)
da y t er m . Wit h in su ch t er m , Con t r a ct or ca n r equ est a m eet in g wit h t h e
E xecu t ive Dir ect or of P RE P A t o pr esen t it s a r gu m en t s r ega r din g t h e
a lleged con flict of in t er est . Th is m eet in g sh a ll be gr a n t ed in ever y ca se. If
s u ch m eet in g is n ot r equ es t ed wit h in t h e s p ecified t er m , or if t h e
con t r over sy is n ot set t led sa t isfa ct or ily du r in g t h e m eet in g, t h is Con t r a ct
sh a ll be t er ir t in a t ed a t t h e en d of sa id fift een (15) da y per iod.
Con t r a ct or cer t ifies t h a t a t t h e t im e of t h e execu t ion of t h is Con t r a ct , it

does n ot h a ve n or does r epr esen t a n yon e wh o h a s con flict of in t er est fh a t
a r e in con flict wit h P RE P A, If su ch con flict in g in t er est s a r ise a ft er t h e
execu t ion of t h is Con t r a ct / Con t r a ct or sh a ll, t o t h e ext en t con sist en t wit h
it s obliga t ion s t o ot h er clien t s, n ot ify P RE P A im m edia t ely.
B. N o em ployee/ officer , or a gen t of F RE P A sh a U pa r t icipa t e in t h e select ion ,

or in t h e a wa r d or a dm u u st r a t ion of a con t r a ct , su ppor t ed by F eder a l
fu n ds, if a con flict of in t er est , r ea l or a ppa r en t / wou ld be in volved.
C. Lim it ed Den ia l of P a r t icipa t ion : 1. Defin it ion ; Lim it ed Den ia l of

P a r t icipa t ion (LDP ) is a n a ct ion t a ken by a H UD F ield Office or t h e Depu t y
Assist a n t Secr et a r y for Sin gle F a m ily (DASSF ) or Mu lt ifa n u ly (DASMF )
H ou sin g wh ich exclu des a pa r t y fr om fu r t h er pa r t icipa t ion m a H U D
pr ogr a m a r ea .
Con t r a ct or cer t ifies t h a t it wiU n ot su bcon t r a ct wit h a n y per son or fir m

t h a t h a s been pla ced in Lim it ed Den ia l P a r t icipa t ion list s or t h a t h a s been
ba r r ed fr om doin g bu sin ess or pa r t icipa t in g in pr ocu r em en t pr ocedu r es
wit h t h e feder a l gover n m en t or t h e Gover n m en t of P u er t o Rico. Th e
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Con t r a ct or will per iodica lly ch eck feder a l a n d loca l n ot ices a n d Lu n it ed

Den ia l P a r t icipa t ion list s t o en su r e com plia n ce wit h t h is r equ ir em en t
t h r ou gh ou t t h e per for m a n ce of t h is Con t r a ct .
VI. RE SP ONSIBILITIE S OF P RE P A
P RE P A sh a ll u se r ea son a ble effor t s t o cooper a t e wit h t h e Con t r a ct or , in clu din g by

pr ovidin g a n y in for m a t ion r ea son a bly r equ est ed by Con t r a ct or a n d pr ovidin g a ccess
t o a n y fa cilit y a t wh ich t h e Ser vices a r e t o be per for m ed a t su ch t im es a s m a y
r ea son a bly be r equ est ed by t h e Con t r a ct or .
VU. OWNE RSH IP AND USE OF DOCUME NTS
Wit h t h e except ion of Con t r a ct or 's wor k in g pa per s, t h e Con t r a ct or a ck n owledges

P RE P A's own er sh ip of a ll in for m a t ion / dr a ft s, dociu n en t s/ r epor t s/ pa per s, a n d ot h er
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m a t er ia ls developed a n d pr epa r ed by t h e Con t r a ct or , it s a gen t s or r epr esen t a t ives,
for p u r p os es of p eifor m in g t h e obliga t ion h er eu n d er . I n t h e even t of a n y
t er m in a t ion . Con t r a ct or sh a ll deliver su ch in for m a t ion , dr a ft s, r epor t s, pa per s a n d
ot h er m a t er ia ls t o P RE P A, in docu m en t for m a n d/or a s com pu t er pr ogr a m da t a , a n d
t h e Con t r a ct or r ecogn izes P RE P A's r igh t t o r equ est su ch docu m en t a t ion a n d/or
com pu t er pr ogr a m da t a , Sh ou ld Con t r a ct or fa il t o deliver sa id in for m a t ion , P RE P A
m a y seek a ju dicia l or der t o en for ce it s r igh t s. E xcept a s ot h er wise pr ovided, a U
in for m a t ion / dr a ft s, docu m en t s, r epor t s/ pa per s a n d ot h er m a t er ia ls developed a n d
p r ep a r ed by t h e Con t r a ct or or a n y S u b-Con t r a ct or / or a n y of it s a gen t s or
r epr esen t a t ives, for pu r poses of per for m in g t h e obliga t ion s h er eu n der sh a ll be
deem ed pr ivileged wor k pr odu ct of P RE P A.
VIII. NON-DISCLOSURE AND CONF J DE NTIALITy
A. Con fiden t ia l In for m a t ion (t h e "Con fiden t ia l In for m a t ion "); Defin it ion : Th e t er m
Con fiden t ia l In for m a t ion / a s u sed t h r ou gh ou t t h is Con t r a ct , m ea n s a n y in for m a t ion
con cer n in g P RE P A a n d/or P RE P A's oper a t ion s a n d t h a t of it s Con t r a ct or (e.g., t h e
pr oject s, com pu t er pr ocessin g syst em s, object a n d sou r ce codes a n d ot h er bu sin ess
a n d fin a n cia l a ffa ir s of P RE P A). Th e t en xi Con fiden t ia l In for m a t ion sh a ll a lso be
deem ed t o in clu de a ll n ot es, a n a lysis/ com pila t ion , st u dies a n d in t er pr et a t ion or
ot h er docu m en t s pr epa r ed by Con t r a ct or , it s a gen t s or r epr esen t a t ives in con n ect ion
wit h t h e P RE P A's oper a t ion s. Th e t er m Con fiden t ia l In for m a t ion does n ot in clu de
t h is Con t r a ct .
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B. N on -Dis clos u r e; Con t r a ct or a n d it s em p loyees / a ffilia t es a n d a u t h or ized

su bcon t r a ct or s a gr ees t o t a k e a ll r ea son a ble st eps or m ea su r es t o k eep con fiden t ia l
a ll Con fiden t ia l In for m a t ion a n d wU l n ot , a t a n y t im e, pr esen t or fu t u r e, wit h ou t
P RE P A's expr ess wr it t en a u t h or iza t ion , u se or sell, m a r k et or disclose a n y
Con fiden t ia l In for m a t ion t o a n y t h ir d pa r t y, fir m , cor por a t ion , or a ssocia t ion for a n y
pu r pose wh a t soever . Con t r a ct or fu r t h er a gr ees t h a t / except a s t h ey r ela t e t o t h e
n or m a l cou r se of t h e ser vice, t h e Con t r a ct or wft L n ot m a k e copies of t h e Con fiden t ia l
In for m a t ion except u pon P RE P A's expr ess wr it t en a u t h or iza t ion , sign ed by a n
a u t h or ized r epr esen t a t ive of P RE P A/ a n d wffl n ot r em ove a n y copy or sa m ple of
Con fiden t ia l In for m a t ion wit h ou t t h e pr ior wr it t en a u t h or iza t ion fr om P RE P A.
Con t r a ct or r et a in s t h e r igh t t o con t r ol it s wor k pa per s su bject t o t h ese con fiden t ia lit y
p r ovis ion s .
< "Con fiden t ia l In for m a t ion " sh a ll n ot a pply t o a n y in for m a t ion wh ich :
^ a ) is gen er a lly k n own t o (a ) t h e pu blic a t t h e t im e of disclosu r e t o Con t r a ct or or

becom es gen er a lly Im own t h r ou gh n o wr on gfu l a ct on t h e pa r t of Con t r a ct or ;
b) is in Con t r a ct or s possession a t t h e t u n e of disclosu r e ot h er wise t h a n a s a
r esu lt of Con t r a ct or 's br ea ch of a n y lega l obliga t ion ;
c) becom es k n own t o Con t r a ct or t h r ou gh d is clos u r e by s ou r ces ot h er t h a n
Con t r a ct or h a vin g t h e lega l r igh t t o disclose su ch in for m a t ion ; or
d) is in depen den t ly developed by Con t r a ct or wit h ou t r efer en ce t o or r elia n ce
u pon t h e con fiden t ia l in for m a t ion .
In a ddit ion , t h ese pr ovision s sh a ll n ot pr oh ibit Con t r a ct or fr om m a k in g a n y

disclosu r e pu r su a n t t o a n y su bpoen a or or der of a cou r t or a Gover n m en t a l or
Adm in ist r a t ive t r ibu n a l wh ich m a y a sser t ju r isdict ion over Con t r a ct or ; pr ovided
t h a t , t o t h e ext en t lega lly per m issible/ Con t r a ct or sh a ll pr om pt ly n ot ify P RE P A of
a n y su ch disclosu r e obliga t ion s a n d r ea son a bly cooper a t e wit h P RE P A's effor t s t o
la wfu lly a void a n d/or m in im ize t h e ext en t of su ch disclosu r e.
Con t r a ct or will n ot disclose a n y Con fiden t ia l In for m a t ion r ela t in g t o t h e wor k t h a t

Con b-a ct or per for m s u n der t h is Con t r a ct .
Con t r a ct or m a y divu lge Con fiden t ia l In for m a t ion t o it s em ployees wh o n eed t o

kn ow su ch in for m a t ion t o fu lfill t h e pu r poses of t h is en ga gem en t pr ovided t h a t su ch
per son s: (i) sh a ll h a ve been a dvised of t h e con fiden t ia l n a t u r e of su ch in for m a t ion
a n d Con t r a ct or sh a ll dir ect t h em , a n d t h ey sh a ll a gr ee, t o t r ea t su ch in for m a t ion a s
con fiden t ia l a n d t o r et u r n a ll m a t er ia ls t o Con t r a ct or u pon r equ est , bu t for on e copy
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for r ecor d pu r poses on ly; a n d (ii) in ea ch ca se, su ch per son sh a ll be bou n d by t h e

t er m s of t h is Con t r a ct ,
In con n ect ion wit h t h e ser vices r en der ed u n der t h is Con t r a ct , Con t r a ct or wiU fu r n ish
P RE P A a n y n ecessa r y r epor t s, a n a lyses or ot h er su ch m a t er ia ls t h a t exist a s of t h e
da t e r equ est ed/ a s P RE P A m a y r ea son a bly r equ est . Con t r a ct or sh a ll n ot in voice die
t im e spen t t o ga t h er a n d deliver su d-i in for m a t ion . P RE P A, h owever / a ck n owledges
t h a t Con t r a ct or m a y develop for it self/ or for ot h er s/ pr oblem solvin g a ppr oa ch es,
fr a m ewor k s or ot h er t ools a n d pr ocesses developed in per for m in g t h e ser vices a n d
a n y a ddit ion a l ser vices pr ovided h er eu n der , a n d n ot h in g con t a in ed h er ein pr eclu des
Con t r a ct or fr om developin g or disclosin g su ch m a t er ia ls a n d in for m a t ion pr ovided
t h a t t h e sa m e do n ot con t a in or r eflect Con fiden t ia l In for m a t ion .
C. Ret u r n of Docu m en t s : Con t r a ct or s h a ll r et u r n or d es t r oy a t i Con fid en t ia l
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In for m a t ion , a s well a s a n y ot h er docu m en t t h a t m a y r ela t e t o it s wor k u n der t h is
Con t r a ct / t o P RE P A wit t iin t h ir t y (30) da ys a ft er da t e of t h e expir a t ion or ea r lier
t er m in a t ion of t h is Con t r a ct , a n d sh a ll cer t ify t h a t a ll t h e in for m a t ion h a s been
r et u r n ed t o P RE P A or dest r oyed, bu t for elect r on ic in for m a t ion h eld in a r ch ive
a n d/or ba ck u p files t o t h e ext en t su ch files ca n n ot be delet ed wit h ou t u n r ea son a ble
effor t or expen se a n d cr ea t ed in t h e or din a r y cou r se pu r su a n t t o est a blish ed da t a
ba ck u p/a r ch ive pr ocedu r es; pr ovided, h owever . Con t r a ct or m a y r et a m it s own wor k
pr odu ct a s lon g a s it m a in t a in s t h e con fiden t ia lit y of P RE P A's Con fiden t ia l
In for m a t ion a s ot h er wise pr ovided in t h is Con t r a ct . Du r in g t h is t h u -t y (30) da y
per iod, a n d except t o t h e ext en t m a k in g su ch docu m en t s a va ila ble wou ld r esu lt in .
t h e loss of lega l pr ivilege for P RE P A, t h ese docu m en t s sh a ll be a va ila ble for
in spect ion by t h e Office of t h e Com pt r oller of P u er t o Rico. Th is Ar t icle sh a ll su r vive
t h e t er m in a t ion / expir a t ion or com plet ion of t h is Con t r a ct .
D. E qu it a ble Relief; Con t r a ct or 's m a t er ia l n egligen t disch a r ge or t h e br ea ch of t h e

con fiden t ia lit y cla u se h er ein a bove con t in u in g a ft er r eceipt of wr it t en wa r n in g or
a ba n don m en t of t h e du t ies a ssign ed h er eu n der sh a ll con st it u t e a br ea ch of t h is
Agr eem en t by Con t r a ct or a n d P RE P A wU l be en t it led t o t er m in a t e t h is Agr eem en t
for t h wit h , wit h ou t h a vin g t o com ply wit h t h e r equ ir em en t s of n ot ice set for t h a bove/
wit h ou t lim it a t ion s of a n y ofh er r igh t s a n d r em edies u n der la w/ a n d wffl r elea se a n d
disch a r ge P RE P A fr om a n y fu r t h er obliga t ion s a n d lia bilides h er eu n der .
E . Con t r a ct or 's m a t er ia l n egligen t disch a r ge or t h e br ea ch of t h e con fiden t ia lit y cla u se

h er ein a boVe con t in u in g a ft er r eceipt of wr it t en wa r n in g or a ba n don m en t of t h e
du t ies a ssign ed h er eu n der sh a ll con st it u t e a br ea ch of t iu s Con t r a ct by Con t r a ct or
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a n d P RE P A will be en t it led t o t er m in a t e t h is Con t r a ct for t h wit h / wit h ou t h a vin g t o

com ply wit h t h e r equ ir em en t s of n ot ice set for t h a bove, wit h ou t lim it a t ion s of a n y
ot h er r igh t s a n d r em edies u n der la w/ a n d wiU . r elea se a n d disch a r ge P RE P A fr om
a n y fu r t h er obliga t ion s a n d lia bilit ies h er eu n der .
IX. TE RMINATION BY TH E CH IE F OF STAF F OF TH E GOVE RNOR OF P UE RTO

E ICO AND INTE RAGE NCY AGRE E ME NTS
P u r su a n t t o Mem or a n du m N o. 2017-001, Cir cu la r Let t er 141-17, of t h e Office of t h e

Ch ief of St a ff of t h e Gover n or of P u er t o Rico (Secr et a r ia de la Gober n a ci6n ) a n d t h e
Office of Ma n a gem en t a n d Bu dget (Oficin a de Ger en cia . y P r esu pu est o - OGF )/ t h e
Ch ief of St a ff sh a U h a ve t h e a u t h or it y t o t er m in a t e t h is Con t r a ct a t a n y t im e. If so
dir ect ed by t h e Ch ief of St a ff/ P RE P A will t er m in a t e t h is Con t r a ct by deliver in g t o
t h e Con t r a ct or a n ot ice of t er m in a t ion s p ecifyin g t h e ext en t t o wh ich , t h e
per for m a n ce of t h e wor k u n der t h is Con t r a ct is t er m in a t ed, a n d t h e effect ive da t e of
t er m in a t ion . U p on t h e effect ive d a t e of t er m in a t ion / t h e Con t r a ct or s h a ll
im m edia t ely discon t in u e a t i ser vices a ffect ed a n d deliver t o P RE P A a U in for m a t ion ,
st u dies a n d ot h er m a t er ia ls pr oper t y of P RE P A. In t h e even t of a t en n in a t ion by
n ot ice/ P RE P A sh a ll be U a ble on ly for pa ym en t of ser vices r en der ed u p t o a n d
in clu din g t h e effect ive da t e of t er m in a t ion .
Bot h pa r t ies a ck n owledge a n d a gr ee t h a t t h e con t r a ct ed Ser vices h er ein m a y be

pr ovided t o a n ot h er en t it y of t h e E xecu t ive Br a n ch wh ich en t er s in t o a n in t er a gen cy
a gr eem en t wit h P RE P A or by dir ect disposit ion oi t h e Office of t h e Ch ief of St a ff.
Th ese ser vices will be per for m ed u n der t h e sa m e t er m s a n d con dit ion s in t er m s of
h ou r s of wor k a n d com pen sa t ion set for t h in t h is Agr eem en t . F or t h e pu r pose of t h is
cla u se, t h e t er m "en t it y of t h e E xecu t ive Br a n ch " in clu des a U a gen cies of t h e
Gover n m en t of P u er t o Rico, a s weU a s pu blic m st r u m en t a U t ies, pu blic cor por a t ion s
a n d t h e Office of t h e Gover n or .
X. COMP LIAN CE WITH TH E COMMON WE ALTH 01 P U E RTO RICO

CONTRACTING RE QUIRE ME NTS
Th e Con t r a ct or will Com ply wiU. a ll a pplica ble St a t e La w, Regu la t ion s or E xecu t ive
Or d er s t h a t r egu la t e t h e con t r a ct in g p r oces s a n d r equ ir em en t s of t h e
Com m on wea lt h of P u er t o Rico. P a r t icu la r ly: La w N u m . 237-2004, a s a m en ded/ wh ich
est a bU sh es u n ifor m con t r a ct in g r equ ir em en t s for pr ofession a l a n d con su lt a n t
ser vices for t h e a gen cies a n d gover n m en t a l en t it ies of t h e Com m on wea lt h of P u er t o
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Ava ila ble a t :h t ^ i/;.w%^ J ia a en da 4n _.gpV/gu b^ ^ ^
16.
Th e Con t r a ct or u n d er s t a n d s t h a t , d u e t o t h e em er gen cy s ih ia t ion of t h e

Com m on wea lt h of P u er t o Rico, t h e Gover n or issu ed E xecu t ive Or der QE -2017-053 t o
F a cilit a t e a n d Acceler a t e t h e Recover y of P u er t o Rico a ft er t h e P a ssa ge of H u r r ica n e Ma r ia
(h er ein a ft er t h e "E m er gen cy Or der ") pr ovidin g t h a t Agen cies or Mu n icipa lit ies of
t h e Com m on wea lt h of P u er t o Rico will h a ve 90 da ys a ft er t h e st a t e of em er gen cy is
fin ish ed t o r equ ir e a U docu m en t a t ion a n d t o r egist er t h e sign ed docu m en t t o t h e
Office of t h e Com pt r oller of t h e Gover n m en t of P u er t o Rico. E xecu t ive Or der OE -
2017-053.
Th e followin g pr ovision s set for t h in t h is sect ion a r e su bject t o t h e E m er gen cy

Or der 's 90-da y per iod t o pr ovide a ll docu m en t a t ion a n d a n y ot h er legisla t ion
a pplica ble t o t h is effect .
A. E xecu t ive Or der N u m . OE -1991-24 of J u n e 18, 1991 t o r equ ir e cer t ifica t ion of
com plia n ce wit h t h e In t er n a l Reven u e Ser vices of t h e Com m on wea lt h of P u er t o
Rico: P u r su a n t t o E xecu t ive Or der N u m ber OE -1991-24 of J u n e 18, 1991, t h e
Con t r a ct or will cer t ify a n d gu a r a n t ee t h a t it h a s filed a ll die n ecessa r y a n d r equ ir ed
in com e t a x r eh u n s t o fh e Gover n m en t of P u er t o Rico for t h e la st five (5) yea r s.
Th e Con t r a ct or , fu r t h er will cer t ify t h a t it h a s com plied a n d is cu r r en t wit h t h e
pa ym en t of a n y a n d a ll in com e t a xes t h a t a r e, or wer e du e, t o t h e Gover n m en t of
P u er t o Rico. Th e Con t r a ct or sh a ll pr ovide, t o t h e sa t isfa ct ion of P RE P A, a n d
wh en ever r equ est ed by P RE P A du r in g t h e t er m of t h is Con t r a ct , t h e n ecessa r y
docu m en t a t ion t o su ppor t it s com plia n ce wit h t h is da u se. Th e Con t r a ct or wiU be
given a specific a m ou n t of t im e t o pr odu ce sa id docu m en t s. Du r in g t h e t er m of t h is
Con t r a ct , t h e Con t r a ct or a gr ees t o pa y a n d/or t o r em a in cu r r en t wit h a n y r epa ym en t
pla n a gr eed t o by t h e Con t r a ct or wit h t h e Gover n m en t of P u er t o Rico. E xecu t ive
Or der 19910E 24.
B. E xecu t ive Or der N u m . OE -1992-52 of Au eu st 28, 1992 t o r equ ir e cer t ifica t ion of
com plia n ce wit h t h e Depa r t m en t of La bor of t h e Com m on wea lt h of P u er t o Rico.
P u r su a n t t o E xecu t ive Or der N u m ber 1992-52, da t ed Au gu st 28,1992 a m en din g OE -
1991-24, t h e Con t r a ct or wiU cer t ify a n d wa r r a n t t h a t it h a s m a de a ll pa ym en t s
r equ ir ed for u n em ploym en t ben efit s, wor k m en 's com pen sa t ion a n d socia l secu r it y
for ch a u ffeu r s, wMch ever is a pplica ble, or t h a t in lieu t h er eof/ h a s su bscr ibed a
"-L ./'J ^
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P r ofe s s ion a l S e r vice s C on t r a ct H O R N E F e d e r a l L L C . ''-/

P a ge 13
pa ym en t pla n in coh n ect ion wit h a n y su ch u n pa id it em s a n d is in fu U com plia n ce

wit h t h e t er m s t h er eof. Th e Con t r a ct or a ccept s a n d a ck n owledges it s r espon sibilit y
for r equ ir in g a n d obt a in in g a sim ila r wa r r a n t y a n d cer t ifica t ion fr om ea ch a n d ever y
Con t r a ct or a n d Su b Con t r a ct or wh ose ser vice t h e Con t r a ct or h a s secu r ed in
con n ect ion wit h t h e ser vices t o be r en der ed u n der t h is Con t r a ct a n d sh a ll for wa r d
eviden ce t o P RE P A a s t o it s com plia n ce wit h t t iis r equ ir em en t . E xecu t ive Or der
19920E 52.
C. Soda l Secu r it y a n d In com e Ta x Ret en t ion s: In com plia n ce wit h E xecu t ive Or der
1991 OE - 24; a n d C.F .R. P a r t 404 et Seq./ t h e Con t r a ct or will be r espon sible for
r en der in g a n d pa yit ig t h e F eder a l Socia l Secu r it y a n d t ocom e Ta x Con t r ibu t ion s for
a n y a m ou n t owed a s a r esu lt of t h e m com e, fr om t h is Con t r a ct . E xecu t ive Or der
19910E 24: C.F .R. P a r t 404 et . Seq.
D. Gover n m en t of P u er t o Rico Mu n icipa l Ta x Collect ion Cen t er ; Th e Con t r a ct or wffl

cer t ify a n d gu a r a n t ee t h a t it does n ot h a ve a n y cu r r en t debt wit h r ega r ds t o pr oper t y
t a xes t h a t m a y be r egist er ed wit h t h e Gover n m en t of P u er t o Rico's Mu n icipa l Ta x
Collect ion Cen t er (kn own in Spa n ish a s Cen t r o de Reca u da cion de J n gr esos Mu n idpa les
("CRIM"). Th e Con t r a ct or fu r t h er will cer t ify t o be cu r r en t wit h t h e pa ym en t of a n y
a n d a U pr oper t y t a xes t h a t a r e or wer e du e t o t h e Gover n m en t of P u er t o Rico. Th e
Con t r a ct or sh a U . pr ovide/ t o t h e sa t isfa ct ion of P RE P A a n d wh en ever r equ est ed by
P RE P A du r in g t h e t er m of fMs Con t r a ct / Cer t ifica t ion issu ed by t h e Mu n icipa l
Reven u es Collect ion Cen t er (MRCC), a ssu r in g t h a t Con t r a ct or does n ot owe a n y t a x
a ccr u in g t o su ch gover n m en t a l a gen cy. To r equ est su ch Cer t ifica t ion , Con t r a ct or will
u se t h e for m issu ed by t h e MRCC (ca lled "CRIM-Cer t ifica dos, Ra dica don , E st a do de
Cu en t a y Todos los Con cept os" in t h e websit e). Th e Con fcr a ct or will deliver u pon
r equ est a n y docu m en t a t ion r equ est ed by P RE P A. Du r in g t h e Ter m . of t h is Con t r a ct ,
t h e Con t r a ct or a gr ees t o pa y a n d/or t o r em a in cu r r en t wit h a n y r epa ym en t pla n
a gr eed t o by t h e Con t r a ct or wit h t h e Gover n m en t of P u er t o Rico wit h r ega r ds t o it s
pr oper t y t a xes. 3 L.P .R.A. S 8611 et seq.; 21 L.P .R.A. S 5001 et seq. Th e Con t r a ct or
sh a ll pr ovide a P er son a l P r oper t y Ta x F ilin g Cer r ifica t ion , issu ed by t h e MRCC
wh ich in dica t es t h a t Con t r a ct or h a s filed It s P er son a l P r oper t y Ta x Reh u -n for t h e la st
five (5) con t r ibu t or y t er m s,
E . Th e Con t r a ct or sh a U pr ovide a P u er t o Rico Sa les a n d U se Ta x F ilin g Cer t ifica t e,

issu ed by t h e Tr ea su r y Depa r t m en t of P u er t o Rico a ssu r in g t h a t Con t r a ct or h a s filed
h is P u er t o Rico Sa les a n d Use Ta x for t h e la st sixt y (60) con t r ibu t or y per iods. A copy
of Con t r a ct or 's Cer t ifica t e of Mer ch a n t 's Regist r a t ion issu ed by t h e Tr ea su r y
Depa r t m en t of P u er t o Rico.
^
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P a ge 14
F . In com e Ta x Ret en t ion La w: P RE P A sh a ll dedu ct a n d wit h h old seven per cen t (7%)
of a n y a n d a ll pa ym en t s t o r esiden t s of t h e Com m on wea lt h of P u er t o Rico a s
r equ ir ed by t h e In t er n a l Reven u e Code of P u er t o Rico. In ca se of U S cit izen s a n d
N on U S cit izen s, t h a t a r e n on r esiden t s of t h e Com m on wea lt h of P u er t o Rico t h e
Con t r a ct or will r et a in t wen t y per cen t (20%) a n d t wen t y-n in e per cen t (29%)
r espect ively. P RE P A wiU r em it su ch wit h h oldin gs t o t h e Gover n m en t of P u er t o
Rico's Tr ea su r y Depa r t m en t (k n own in Spa n ish a s Depa r t a m en t o de H a cien da de P u er t o
Rico). Th e Con t r a ct or wffl r equ est P RE P A n ot t o m a k e su ch wit Kh oIdm gs if, t o t h e
sa t isfa ct ion of P RE P A/ t h e Con t r a ct or t im ely pr ovides a r elea se fr om su ch obliga t ion
by t h e Gover n m en t of P u er t o Rico's Tr ea s u r y Dep a r t m en t .
3L.P .R.A.S8611et seq., 2011 L.P .R.232; 232-2011.
G. Specia l Con t r ibu t ion for P r ofession a l a n d Con su lt in g Ser vices: As r equ ir ed by
Act N o. 48-2013, a s a m en ded, P RE P A will wit h h old a specia l con t r ibu t ion of on e
poin t five per cen t (1.5%) of t h e gr oss a m ou n t s pa id u n der t h is Con t r a ct .
H . P u er t o Rico Ch ild Su ppor t Adm im st r a t ion (ASUME ): Th e Con t r a ct or sh a ll pr esen t ,

t o t h e sa t isfa ct ion of P RE P A/ t h e n ecessa r y docu m en t a t ion cer t ifyin g t h a t t h e
Con t r a ct or n or a n y of it s own er s, a ffilia t es of su bsidia r ies, if a pplica ble, h a ve a n y
debt , ou t st a n din g debt , or lega l pr ocedu r es t o coU ect ch U d su ppor t pa ym en t s t h a t
m a y be r egist er ed wit h t h e P u er t o Rico O-u ld Su ppor t Adm in ist r a t ion (k n own in
Spa n ish a s t h e Adm in ist m cion P a r a E l Su st en t o de Men or es (ASUME )). Th e Con t r a ct or
will be given a specific a m ou n t of t k n e t o deliver sa id docu m en t s. 3 L.P .R.A. § 8611
et sea .;
I. Com plia n ce wit h Act N o. 1 of Gover n m en t a l E t h ics: Th e Con t r a ct or wiU cer t ify
com plia n ce wit h Act N o. 1 of J a n u a r y 3, 2012, a s a m en ded, k n own a s t h e E t h ics Act
of t h e Gover n m en t of P u er t o Rico, wh ich st ipu la t es t h a t n o em ployee or execu t ive of
P RE P A n or a n y m em ber of lu s/h e im m edia t e fa m ily (spou se/ depen den t ch ildr en or
ofh er m em ber s of h is/h er h ou seh old or a n y in dividu a l wh ose fm a n cia l a ffa ir s a r e
u n der t h e con t r ol of t h e em ployee) sh a ll h a ve a n y dir ect or in dir ect pecu n ia r y
in t er est in t h e ser vices t o be r en der ed u n der t h is Con t r a ct , except a s m a y be
expr essly a u t h or ized by t h e Gover n or of P u er t o Rico in con su lt a t ion wit h t h e
Secr et a r y of Tr ea su r y a n d t h e Secr et a r y of J u st ice of t h e Gover n m en t . 3 L.P .R.A. §
8611 et sea .;
J . La w 168-2000; La w for t h e St r en gt h en in g of t h e F a m ily Su ppor t a n d Livelih ood of

E lder ly P eople: Th e Con t r a ct or wU l cer t ify t h a t if t h er e is a n y J u dicia l or

P a ge 15
Adm in ist a r a t ive Or der dem a n din g pa ym en t or a n y econ om ic su ppor t r ega r din g
Act N o. 168-2000, a s a m en ded, t h e sa m e is cu r r en t a n d in a ll a spect s in com plia n ce.
Act No. 168-2000 "La w for t h e St r en gt h en in g of t h e F a m ily Su ppor t a n d Livelih ood of
E lder ly P eople" in Spa n ish : "Ley pa r a el F or t a lecim ien t o del Apoyo F a m ilia r y Su st en t o de
P er son a s de E da d Ava n za da ", 3 L.P .R.A. §8611 et seq.
K. La w N u m . 127, Ma y 31, 2004: Con t r a ct Regist r a t ion in t h e Com pt r oU er 's Office of

P u er t o Rico Act : P a ym en t for ser vices object of t h is Con t r a ct will n ot be m a de u n t il
t h is Con t r a ct is pr oper ly r egist er ed in t h e Office of t h e Com pt r oller of t h e
Gover n m en t of P u er t o Rico pu r su a n t t o La w N u m ber 18 of Oct ober 30, 1975, a s
a m en ded.
1. Th e E m er gen cy Or der pr ovides t h a t a ll Agen des or Mu n icipa lit ies of t h e

Com m on wea lt h of P u er t o Rico vvU l h a ve 90 da ys a ft er t h e st a t e of
em er gen cy is fin ish ed t o r equ ir e a ll docu m en t a t ion a n d t o r egist er t h e
sign ed docu m en t t o t h e Office of t h e Com pt r oller of t h e Gover n m en t of
P u er t o Rico. E xecu t ive Or der OE -2017-053.
L. La w N u m . 84 Tu n e, 2012 Code of E t h ics for Con t r a ct or s, Su pplier s a n d Seek er s of

E con om ic In cen t ives of t h e E xecu t ive Agen cies of t h e Com m on wea lt h of P u er t o
Rico: N o em ployee or officer of t h e P RE P A a n d n o m em ber of t h eir fa n t iBes ca n
h a ve a n y in t er est in t h e ea r n in gs or ben efit s fr om t h is Con t r a ct / in a ccor da n ce wit h
Act N o. 84- 2002, a s a m en ded. Th e Con t r a ct or a ck n owledges t h a t it m u st r ea d t h e
E t h ics Code for Con t r a ct or s, Su pplier s, a n d Applica n t s of E con om ic In cen t ives fr om
t h e Gover n m en t of P u er t o Rico Agen cies k n own in Spa n ish a s Codigo de E t ica pa r a
Con t r a t ist a s, Su plidor es y Solidt a n t es de In cen t iu os E con om icos de la s Agen da s E jecu t iva s
d e P u e r t o R ico. S u ch la w ca n b e fou n d a t ;
^ yJ jwwwJ e^ m js .cw^ &x^ ieyg^ Ql^ . Th e Con t r a ct or cer t ifies
t h a t it will r ea d su ch la w a n d t h a t in t h e even t it ca n n ot a ccess t h e on lin e ver sion it
will n ot ify t h e P RE P A in or der t o obt a in pr in t ed copy of t h e la w. F a ilu r e t o r equ ir e a
pr in t ed copy of t h e la iv t o t h e P RE P A will be eviden ce t h a t t h e Con t r a ct or wa s a ble
t o fin d if on lin e a n d r ea d it a s r equ ir ed.
M. N eea t ive Cer t ifica t ion of Cr im in a l P r ocedu r es: Th e Con t r a ct or cer t ifies a n d
gu a r a n t ees t h a t , a t t h e execu t ion of t h is Con t r a ct , n eit h er t h e it , n or a n y of it s
ch a ir per son , vice ch a ir per son , dir ect or s, execu t ive dir ect or , a n y m em ber of it s boa r d
of dir ect or s or boa r d of officia ls, or a n y per son per for m m g equ iva len t fu n ct ion s for
t h e (Com pa n y N a m e); or it s su bsidia r ies or a lt er egos h a ve been con vict ed or h a ve
p lea d ed gu ilt y, a n d n eit h er it , n or a n y of t h e a for em en t ion ed p er s on s , h a s
;' .- i; " .. 7 2 -
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P a ge 16
k n owledge of a n y of t h e for egoin g bein g t h e su bject of a n y in vest iga t ion in eit h er a

civil or a cr im in a l pr ocedu r e in a st a t e or feder a l cou r t or t h e cou r t of a n y ot h er
ju r isdict ion , for cr im in a l or civil ch a r ges r ela t ed t o t h e pu bU c t oea su r y, t h e pu blic
t r u st , a pu blic fu n ct ion , or a fa u lt t h a t in volves pu blic fu n ds or pr oper t y. On or
befor e t h e execu t ion of t h is Con t r a ct t h e Con t r a ct or will deliver t o P RE P A a swor n
st a t em en t in con n ect ion wit h t h e a for em en t ion ed, a s r equ ir ed by Act N o. 458-2000,
a s a m en ded ("Act 458").
If t h e st a t u s of t h e Con t r a ct or ch a ir per son , vice ch a ir per son , dir ect or s, execu t ive
dir ect or , a n y m em ber of it s boa r d of dir ect or s or boa r d of officia ls/ or a n y per son
per for m m g equ iva len t fu n ct ion s for t h e [Com pa n y N a m e); or it s su bsidia r ies or a lt er
egos, wit h r ega r ds t o t h e ch a r ges pr eviou sly m en t ion ed sh ou ld ch a n ge a t a n y t im e
du r in g t h e t er m of t h is Con t r a ct / t h e Con t r a ct or sh a ll n ot ify P RE P A im m edia t ely.
Th e fa ilu r e t o com ply wit h t h is r espon sibilit y con st it u t es a viola t ion of t h is Cla u se.
Con t r a ct or a ck n owledges a n d a gr ees t h a t / a s r equ ir ed u n der Ar t icle 4 of Act 458, t h is

Con t r a ct sh a ll t er m in a t e a u t om a t ica lly if t h e Con t r a ct or or a n y of it s pa r t n er s
a ssocia t es, officer s, dir ect or s/ em ployees, a gen t s or su bcon t r a ct or s is con vict ed or
plea ds gu ilt y t o a n y of t h e cr im es list ed in Act 458. In a ddit ion , bu t on ly t o t h e
ext en t r equ ir ed by Act 458-2000, P RE P A sh a ll h a ve t h e r igh t t o dem a n d t h e
Tet m bu Tsem en t of pa ym en t s m a de pu r su a n t t o t h is Con t r a ct fh a t dir ect ly r esu lt fr om
t h e com m it t ed cr im e.
N . Con sequ en ces of N on -Com plia n ce: Th e Con t r a ct or expr essly a gr ees t h a t t h e
con dit ion s ou t lin ed t h r ou gh ou t t h is Sect ion X a r e essen t ia l r equ ir em en t s of t h is
Con t r a ct . Con sequ en t ly/ sh ou ld a n y on e of t h ese r epr esen t a t ion s/ wa r r a n t ies or
cer t ifica t ion s be in cor r ect , in a ccu r a t e or m islea din g, in wh ole or in pa r t , t h er e sh a ll
be su fficien t ca u se for t h e P RE P A t o r en der t h is Con t r a ct n u ll a n d Void/ a n d t h e
Con t r a ct or sh a ll r eim bu r se t h e P RE P A a ll m on eys r eceived u n der t h is Con t r a ct .
XI. COMP LIANCE WITH AP P LICABLE F E DE RAL LAW, RE GULATIONS AND

E XE CUTIVE ORDE RS.
A. P ROVISIONS AP P LICABLE F OR CONTRACTS OVE R $100,000.00
1. Com plia n ce wit h t h e Con t r a ct Wor k H ou r s a n d Sa fet y St a n da r ds Act (40 U .S.C. §§

3701-3708) a s su pplem en t ed by Depa r t m en t of La bor r egu la t ion s (29 CF R pa r t 5).
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P a ge 17
(a ) Over t im e. In a ccor da n ce wit h a n d su bject t o t h e pr ovision s of t h e

Con t r a ct Wor k H ou r s a n d Sa fet y St a n da r ds Act / 40 U.S.C. §§ 3701-3708,
a ll la bor er s (in clu din g wa t ch m en a n d gu a r ds) a n d m ech a n ics em ployed
by t h e Con t r a ct or or Su bcon t r a ct or s sh a ll r eceive over t im e com pen sa t ion
a t a r a t e n ot less t h a n on e a n d on e-h a lf t im es t h e ba sic r a t e of pa y for a U
h ou r s wor k ed in excess of for t y h ou r s in a wor k week . Th e Con t r a ct or
a n d su bcon t r a ct or s sh a ll com ply wit h a ll r egu la t ion s issu ed pu r su a n t t o
t h e Con t r a ct Wor k H ou r s a n d Sa fet y St a n da r ds Act / a n d wit h ot h er
a pplica ble F eder a l la ws a n d r egu la t ion s per t a in in g t o la bor st a n da r ds.
(b) Viola t ion ; lia bilit y for u n pa id wa ges; liqu ida t ed da m a ges. In t h e even t
of a n y viola t ion of t h e cla u se set for t h in pa r a gr a ph (a ) of t h is sect ion , t h e
Con t r a ct or a n d a n y Su b Con t r a ct or r espon sible t h er efor sh a ll be lia ble
for t h e u n pa id wa ges. In a ddit ion , su ch Con t r a ct or a n d Su b Con t r a ct or
sh a ll be lia ble t o t h e Un it ed St a t es a n d/or Com m on wea lt h of P u er t o Rico
for liqu ida t ed da m a ges of $10 for ea ch ca len da r da y a la bor er or
m ech a n ic wor k ed m or e t h a n t h e st a n da r d for t y-h ou r wor k weel; wit h ou t
r eceivin g over t im e pa y. Su ch liqu ida t ed da m a ges win be ca lcu la t ed
sepa r a t ely for ea ch la bor er or m ech a n ic t h a t wor k ed m or e t h a n for t y
h ou r s in a week wit h ou t r eceivin g over t im e wa ges a s r equ ir ed u n der
pa r a gr a ph (a ) of t h is sect ion .
(c) Wjt -h h oldin g for u n pa id wa ges a n d liqu ida t ed da m a ees. Th e

Com m on wea lt h of P u er t o Rico sh a ll, u pon it s own a ct ion or u pon
wr it t en r equ est of a n a u t h or ized r epr esen t a t ive of t h e U n it ed St a t es
Depa r t m en t of La bor , wit h h old or ca u se t o be wit h h eld/ fr om a n y
m on eys pa ya ble on a ccou n t of wor k per for m ed by t h e Con t r a ct or or
Su b-con t r a ct or u n der a n y su ch con t r a ct or a n y ot h er F eder a l con t r a ct
wit h t h e sa m e pr im e Con t r a ct or , or a n y ot h er feder a lly-a ssist ed con t r a ct
su bject t o t h e Con t r a ct Wor k H ou r s a n d Sa fet y St a n da r ds Act , wh ich is
h eld by t h e sa m e pr im e Con t r a ct or , su ch su m s a s m a y be det er m in ed t o
be n eces s a r y t o s a t is fy a n y lia bilit ies , of s u ch Con t r a ct or or S u b
Con t r a ct or for u n pa id wa ges a n d liqu ida t ed da m a ges a s pr ovided in t h e
cla u se set for t h in pa r a gr a ph (b) of t h is sect ion .
(d) Su bcon t r a ct s. Th e Con t r a ct or or Su b Con t r a ct or sh a ll in ser t in a n y

su bcon t r a ct s t h e cla u ses set for t h in pa r a gr a ph (a ) t h r ou gh (d) of t h is
sect ion a n d a lso a cla u se r equ ir in g t h e Su bcon t r a ct or s t o in clu de t h ese
cla u ses in a n y lower t ier su bcon t r a ct s. Th e pr im e Con t r a ct or sh a ll be
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P a ge 18
r espon sible for com plia n ce by a n y Su b Con t r a ct or or lower t ier Su b

Con t r a ct or wit h t h e cla u ses set for t h in pa r a gr a ph s (a ) t h r ou gh (d) of
t h is sect ion .
2. Byr d An t i-Lobbyin g Am en dm en t 31 U .S.C. § 1352 (a s a m en ded). Con t r a ct or s wh o

a pply or bid for a n a wa r d of $100/000 or m or e sh a ll file t h e r equ ir ed cer t ifica t ion .
E a ch t ier cer t ifies t o t h e t ier a bove t h a t it wiU n ot a n d h a s n ot u sed F eder a l
a ppr opr ia t ed fu n ds t o pa y a n y per son or or ga n iza t ion for m flu en dn g or a t t em pt in g
t o in flu en ce a n officer or em ployee of a n y a gen cy, a m em ber of Con gr ess, officer or
em ployee of Con gr ess, or a n em ployee of a m em ber of Con gr ess in . con n ect ion wit h
obt a in in g a n y F eder a l con t r a ct , gr a n t / or a n y ot h er a wa r d cover ed by 31 U .S.C. §
1352. E a ch t ier sh a U a lso disclose a n y lobbyin g wit h n on -F eder a l fu n ds t h a t t a k es
pla ce in con n ect ion wit h obt a in in g a n y F eder a l a wa r d. Su ch disclosu r es a r e
for wa r ded fr om t ier t o t ier u p t o P RE P A a n d t h e Gover n m en t of P u er t o Rico.
B. ADDF TION AL P ROVISION S AP P LICABLE F OR CON TRACTS OVE R

$150/000.00
F or a ll con t r a ct s in excess of $150/000.00, t h e pr ovision s of t h is pa r a gr a ph (B) will

a pply in a ddit ion t o t h e pr ovision s set for t h in pa r a gr a ph (A)a bove.
1. Bon dm g. If t h e con st r u ct ion a n d fa cilit y im pr ovem en t con t r a ct s a n d su bcon t r a ct s is

in excess of $150/000, t h e Con t r a ct or sh a ll pr ovide: (i) a per for m a n ce bon d for 100
per cefit of t h e con t r a ct pr ice; a n d (ii) a pa ym en t bon d for 100 per cen t of t h e con t r a ct
pr ice. E xcept ion s t o t h ese r equ ir em en t s m a y on ly be m a de wit h t h e expr ess
a ppr ova l of t h e F eder a l a wa r din g a gen cy a n d/or t h e Com m on wea lt h of P u er t o Rico.
2. Br ea ch of Con t r a ct Ter m s. An y viola t ion or br ea ch of t er m s of t in s Con t r a ct on t h e

p a r t of t h e Con t ca ct or or a S u b-con t r a ct or m a y r es u lt in t h e s u s p en s ion or
t er m in a t ion of t h is Con t r a ct or su ch ot h er a ct ion / in clu din g t h e r ecover y of da m a ges,
a s m a y be n ecessa r y t o en for ce t h e r igh t s of P RE P A. Th e du t ies a n d obliga t ion s
im posed by t h is Con t r a ct a n d t h e r igh t s a n d r em edies a va ila ble h er eu n der sh a ll be m
a ddit ion t o/ a n d n ot a lim it a t ion of, a n y du t ies, obliga t ion s, r igh t s a n d r em edies
ot h er wise im posed or a va ila ble by la w.
3. Clea n Air Act a n d t h e F eder a l Wa t er P ollu t ion Con h -ol Act . Th e Con t r a ct or a gr ees
t o com ply wit h a ll a pplica ble st a n da r ds, or der s or r egu la t ion s issu ed pu r su a n t t o die
Clea n Air Act , a s a m en ded/ 42 U .S.C. § 7401 et seq./ a n d t h e F eder a l Wa t er P ollu t ion
Con t r ol Act , a s a m en ded, 33 U .S.C. 1251 et seq. Th e Con t r a ct or a gr ees t o r epor t ea ch
'^ J "/ }'.f i>

P r ofe s s ion a l S e r vice s C on t r a ct H O R N E F e d e r a l L L C . "' L '^ i ,f
1<<'.
P a ge 19
viola t ion t o P RE P A a n d u n der st a n ds a n d a gr ees t h a t P RE P A wiU , in t u r n , r epor t

ea ch viola t ion a s r equ ir ed t o a ssu r e n ot ifica t ion t o t h e Com m on wea lt h of P u er t o
Rico, F eder a l E m er gen cy Ma n a gem en t Agen cy/ a n d t h e a ppr opr ia t e E n vir on m en t a l
P r ot ect ion Agen cy Region a l Office. Th e Con t r a ct or a gr ees t o in clu d e t h es e
r equ ir em en t s in ea ch su bcon t r a ct exceedin g $150,000 fin a n ced in wh ole or in pa r t
wit h F eder a l a ssist a n ce
C. ADDITION AL P ROVISION S AP P LICABLE TO ALL CON TRACTS,

RE GARDLE SS OF TH E CONTRACT AMOUNT.
1. Ch a n ges. At a n y t im e, a n d on ly t h r ou gh a wr it t en ch a n ge or der in st r u ct ion , t h e

P RE P A m a y m a k e ch a n ges in t h e Ser vices or wor k t o be per for m ed wit h in t h e
gen er a l scope of t h is Con t r a ct . If su ch ch a n ges ca u se a n m cr ea se or decr ea se in
Con t r a ct or 's cost of, or t im e r equ ir ed for , per for m a n ce of a n y ser vices u n der t h is
Con t r a ct / a n equ it a ble a dju st m en t sh a ll be m a de a n d t h is Con t r a ct sh a ll be m odified
in wr it in g a ccor din gly, pr ovided/ h owever , t h a t n o ch a n ges sh a ll be m a de t o t h e
scope of t h e Ser vices t h a t wou ld r en der t h e cost s in cu r r ed in t h e per for m a n ce of t h is
Con t r a ct u n a llowa ble or n ot a U oca ble u n der , or ou t side t h e scope or n ot r ea son a ble
for t h e com plet ion of. F eder a l gr a n t a wa r ds fr om F E MA or a n y Ot h er U .S. F eder a l
( a g e n cy .
2. Su fficien cy of F u n ds. Th e Con t r a ct or r ecogn izes a n d a gr ees t h a t fu n din g for t h is

Con t r a ct is con t in gen t u pon t h e a va ila bilit y of F eder a l a ssist a n ce a wa r ded by
F eder a l a gen cies t o t h e Com m on wea lt h of P u er t o Rico, A fa ilu r e of P RE P A t o m a k e
a n y pa ym en t u n der t h is Con t r a ct du e t o u n a va ila bilit y of F eder a l a n d/or
Com m on wea lt h fu n din g sh a ll n ot con st it u t e a br ea ch of t h e Con t r a ct by P RE P A or
defa u lt t h er eu n der a n d P RE P A a n d t h e Com m on wea lt h sh a ll n ot be h eld fm a n cia lly
lia b le t h e r e for e .
If du r in g t h e t er m of t h is Con t r a ct , F eder a l or Com m on wea lt h fu n din g is r edu ced,
deobU ga t ed, or wifh dr a wn , P RE P A m a y r edu ce t h e scope of or t er m in a t e t h e
Con t r a ct . P RE P A sh a U pr ovide t h e Con t r a ct or wit h wr it t en n ot ice of t h e la ck of
fu n din g wit h in a r ea son a ble t im e a n d t h e P RE P A r eser ves a ll r igh t s t o r edu ce t h e
scope of or t er m in a t e t h e Con t r a ct a s a r esu lt of la ck of fu n din g.
3. In dem n ifica t ion . Th e Con t r a ct or sh a ll in dem n ify/ defen d a n d h old h a r m less

P RE P A, it s a gen t s a n d em ployees, fr om a n d a ga in st a n y a n d a ll cla im s, a ct ion s, su it s,
ch a r ges a n d ju dgm en t s a r isin g fr om , or r ela t ed t o/ t h e n egligen ce, fr a u d or willfu l
m iscon du ct of t h e Con t r a ct or in t h e per for m a n ce of t h e ser vices ca lled for in t h is
Con t r a ct , Th e fa ilu r e of t h e Con t r a ct or t o obt a in , m a in t a in , or pa y for a n y in su r a n ce
^
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P r ofession a l Ser vices Con t r a ct H ORI-iE F eder a l LLC.

P a ge 20
cover a ge n ecessa r y t o in su r e it s obliga t ion s u n der t h is Con t r a ct a n d/or t h e fa ilu r e of

Con t r a ct or 's in su r a n ce ca r r ier t o pr ovide in su r a n ce cover a ge sh a ll n ot r elieve
Con t r a ct or of it s in dem r dfica t ion obliga t ion s,
4. F E MA Disa st er Assist a n ce St u 'vivor /Reeist r a n t Da t a .
(a ) If fee Con t r a ct or h a s a ccess t o Disa st er Assist a n ce Su r vivor /Regist r a n t

da t a or a n y ot h er per son a lly iden t ifia ble in for m a t ion , t h e Con t r a ct or
sh a ll com ply wit h t h e pr ovision s of t h e Ter m s a n d Con dit ion s for
Sh a r in g F E MA Disa st er Assist a n ce Su r vivor /Regist r a n t Da t a -wit h St a t e
Gover n m en t s set for t h in t h e F E MA-Com m on wea lt h Con t r a ct for
F E MA-4339-DR-P R.
(b) Th e Con t r a ct or sh a ll in dem n ify, defen d, a n d h old h a r m less P RE P A a n d

t h e Com m on wea lt h of P u er t o Rico for a n y a n d a ll cost s a ssocia t ed wit h
t h e defen se of t h a t lit iga t ion , in clu din g cost s a n d a t t or n eys' fees,
set t lem en t s/ or a dver se ju dgm en t s a r isin g fr om t h e Con t r a ct or 's fa ilu r e
t o com ply wit h t h e r equ ir em en t s u n der t h is con t r a ct .
5. In su r a n ce. Th e Con t r a ct or sh a ll m a in t a in a dequ a t e in su r a n ce cover a ge t o h old

h a r m less P RE P A, it s a gen t s a n d em ployees fr om a n d a ga in st a n y a n d a U cla im s/
a ct ion s, su it s/ ch a r ges a n d ju dgm en t s a r isin g fr om or r ela t ed t o t h e n egligen ce, fr a u d
or willfu l m iscon du ct of t h e Con t r a ct or in t h e per for m a n ce of t h e Ser vices, a n d a
P a ym en t P er for m a n ce Bon d for t h e va lu e of t h e wor k per for m ed.
Con su lt a n t sh a U obt a in a n d m a in t a in in fu ll for ce a n d effect du r in g t h e life of t h is

Con t r a ct policies of in su r a n ce cover in g a ll t h e ser vices en ga ged u n der t h e Con t r a ct ,
wh ich sh a ll be obt a in ed fr om in su r a n ce com pa n ies a u t h or ized t o pr ovide cover a ge
for oper a t ion s in P u er t o Rico/ a n d t o t h a t effect it sh a ll pr ovide in or igin a l cer t ifica t es
of in su r a n ce a n d en dor sem en t s, a s follows;
A. E m ployer 's Lia bilit y In su r a n ce - Con su lt a n t sh a ll pr ovide E m ployer 's Lia bilit y
In su r a n ce wit h m in im u m bodily in ju r y lim it s of $500,000 for ea ch em ployee a n d
$500/000 for ea ch a cciden t cover in g a ga in st t h e lia bilit y im posed by la w u pon
Con su lt a n t a s r esu lt of bodily in ju r y, by a cciden t or disea se, in clu din g dea t h
a r isin g ou t of a n d in t h e cou r se of em ploym en t , ou t side of a n d in t h e cou r se of
em ploym en t / a n d ou t side of a n d dist in ct fr om a n y cla im u n der t h e Wor k m en 's
Com pen sa t ion Act of t h e Com m on wea lt h of P u er t o Rico.
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P r ofe s s ion a l S e r vice s C on t r a ct H O R N E F e d e r a l L L C . "<i'^ /
P a ge 21
B, Com m er cia l Gen er a l Lia bilit y In su r a n ce - Con su lt a n t sh a ll pr ovide a Com m er cia l

Gen er a l Lia bilit y In su r a n ce wit h lim it s of $1/000,000 per cla im a n d $1/000,000
a ggr ega t e.
C. Au t om obile Lia bilit y In su r a n ce - Con su lt a n t sh a ll pr ovide a Com pr eh en sive
Au t om obile Lia bilit y In su r a n ce wit h lim it s of $1,000,000 com bin ed sin gle lim it s
cover in g a t i own ed, n on -own ed a n d h ir ed a u t om obiles.
D. P r ofession a l Lia bilit y In su ia n ce - Con su lt a n t sh a ll m a t n t a in a P r ofession a l
lia bilit y In su r a n ce wit h lim it s of $1,000,000 per cla im a n d $1,000,000 a ggr ega t e.
Requ ir em en t s u n der t h e P olicies
Th e Com m er cia l Gen er a l Lia bilit y a n d Com m er cia l Au t om obile Lia bilit y In su r a n ce
r equ ir ed u n der t h is Con t r a ct sh a ll be en dor sed t o in clu de:
As "a ddit ion a l in su r ed";

Risk Ma n a gem en t Office
P O Box 364267
Sa n J u a n / P u er t o Rico 00936-4267
Th e a ddit ion a l in su r a n ce r equ ir em en t m a y be sa t isfied by a bla n k et a ddit ion a l

in su r ed en dor sem en t Th is en dor sem en t m u st clea r ly sh ow t h e poU cy n u m ber s for
t h e Com m er cia l Gen er a l Lia bilit y In su r a n ce a n d t h e Au t om obile Lia bilit y In su r a n ce,
r espect ively. A t h ir t y (30) da y ca n cella t ion or n on r en ewa ble n ot ice t o be sen t by
cer t ified m a il wit h r et u r n r eceipt t o t h e a bove a ddr ess;
Iden t ify on t h e cer t ifica t es of in su r a n ce t h a t t h e Gen er a l Lia bilit y In su r a n ce a n d

Au t om obile Lia bilit y In su r a n ce in clu de t h is Con t r a ct u n der Con t r a ct u a l lia bilit y
cover a ge iden t ifyin g it by n u m ber , da t e, a n d pa r t ies t o t h e Con t r a ct ;
Wa iver of su br oga t ion in fa vor of P RE P A for cla im s du e t o Con su lt a n t 's sole

n egligen ce;
Br ea ch of Wa r r a n t ies or con dit ion s; Th e br ea ch of a n y of t h e Wa r r a n t ies or

Con dit ion s in t h is policy by Con su lt a n t sh a ll n ot pr eju dice P RE P A's r igh t s u n der
t h is policy.
F u r n ish in g of P olicies:
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P a ge 22
AH r equ ir ed policies of in su r a n ce sh a ll be issu ed on ly by m su r a n ce com pa n ies

a u t h or ised t o do bu sin ess in P u er t o Rico,
Con su lt a n t sh a ll fu r n ish a cer t ifica t e of in su r a n ce in or igin a l sign ed by a n a u t h or ized

r epr esen t a t ive of in su r er m P u er t o Rico, descr ibed t h e cover a ge a ffor ded. Th is
cer t ifica t ion sh a U be in t h e "Accor d" for m , in gen er a l u se by in su r er s, or su ch ot h er
for m a s su ch in su r er m a y r egu la r ly issu e. Also, or igin a l of t h e en dor sem en t s sh a ll
be fu r m slied.
6. Wor k m en 's Com pen sa t ion : Th e Con t r a ct or sh a U pr ovide wor k m en 's com pen sa t ion
in su r a n ce a s r equ ir ed by Act 45-1935, a s a m en ded. Con h -a ct or sh a ll a lso be
r espon sible for com plia n ce wit h Act 45 by a ll it s su bcon t r a ct or s/ a gen t s a n d in vit ees,
if a n y, or sh a ll cer t ify t h a t su ch su bcon t r a ct or s/ a gen t s a n d ir r vit ees h a ve obt a in ed
sa id policies on t h eir own beh a lf. Con t r a ct or sh a ll fu r n ish t o P RE P A a cer t ifica t e
fr om t h e
P u er t o Rico's St a t e In su r a n ce F u n d sh owin g t h a t a ll per son n el em ployed in t h e wor k
a r e cover ed by t h e wor k m en 's com pen sa t ion in su r a n ce/ in a ccor da n ce wit h t h is
Agr eem en t .
7. Cost s. All cost s in cu r r ed by t h e Con t r a ct or in per for m a n ce of t h is Con t r a ct m u st be

in a ccor d wit h t h e cost pr in ciples of 2 C.F .R. pt . 200, Su bpa r t E . P RE P A sh a ll n ot be
r equ ir ed t o m a k e pa ym en t s t o t h e Con t r a ct or for cost s wh ich a r e fou n d t o be
con t r a r y t o t h e cost pr in ciples 2 C.F .R. pt . 200, Su bpa r t E .
8. F in a n cia l Ma n a gem en t Syst em . Th e Con t r a ct or 's fin a n cia l m a n a gem en t syst em

sh a ll pr ovide for t h e followin g:
(a ) a ccu r a t e, cu r r en t a n d com plet e disclosu r e of t h e fin a n cia l r esu lt s of t h is

Con t r a ct a n d a n y ot h er con t r a ct , gr a n t / pr ogr a m or ot h er a ct ivit y
a dm in ist er ed by t h e Con t r a ct or ;
(b) r ecor ds . a dequ a t ely iden t ifyin g t h e sou r ce a n d a pplica t ion of a ll

Con t r a ct or fu n ds a n d a ll fu n ds a dm in ist er ed by t h e Con t r a ct or wh ich
sh a U con t a in in for m a t ion per t a in in g t o a U con t r a ct a n d gr a n t a wa r ds a n d
a u t h or iza t ion s/ obliga t ion s/ u n obliga t ed ba la n ces/ a sset s, lia bilit ies,
ou t la ys a n d in com e/ a n d sh a ll be segr ega t ed by con t r a ct or on a con t r a ct -
by-con t r a ct ba sis;
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P a ge 23
(c) effect ive in t er n a l con t r ol st m ct u r e over a ll fu n ds, pr oper t y a n d ot h er

a sset s, su fficien t t o a llow t h e Con t r a ct or t o a dequ a t ely sa fegu a r d a U su ch
a sset s a n d sh a ll en su r e t h a t fh ey a r e u sed solely for a u t h or ized pu r poses;
(d) com pa r ison of a ch ia l ou t la ys wit h bu dget ed a m ou n t s for t h is Con t r a ct

a n d for a n y ot i-ier con t r a ct , gr a n t / p r ogr a m or ot h er a ct ivit y
a dm in ist er ed by t h e Con t r a ct or ;
(e) a ccou n t in g r ecor ds su ppor t ed by sou r ce docu m en t a t ion ;
(f) pr ocedu r es t o m in u r dze ela psed t im e bet ween a n y a dva n ce pa ym en t

issu ed a n d t h e disbu r sem en t of su ch a dva n ce fu n ds by t h e Con t r a ct or ;
and
(g) pr ocedu r es con sist en t wit h t h e pr ovision s of a n y a pplica ble policies of

t h e F eder a l Gover n m en t a n d t h e Com m on wea lt h of P u er t o Rico a n d
pr ocedu r es for det er m in in g t h e r ea son a blen ess, a U owa bilit y a n d
a U oca bilit y of cost s u n der t h is Con t r a ct .
9. P en a lt ies, F in es, a n d Disa llowed Cost s. In t h e even t t h a t a n y U .S. F eder a l a gen cy

or t h e Com m on wea lt h of P u er t o Rico disa U ows or dem a n ds r epa ym en t for cost s
in cu r r ed in t h e per for m a n ce of t h is Con t r a ct , or if a n y pen a lt y is im posed du e t o a n
a ct or om ission by t h e Con t r a ct or , t h e Con t r a ct or sh a ll be solely r espon sible for su ch
pen a lt y, disa llowed cost s/ or r epa ym en t dem a n d, a n d sh a ll r eim bu r se P RE P A in fu ll
wit h in t en (10) da ys of r eceivin g n ot ice fr om P RE P A of su ch pen a lt y, disa llowa n ce,
or r epa ym en t dem a n d. An y m on ies pa id by t h e Con t r a ct or pu r su a n t t o t h is
pr ovision sh a ll n ot r eU eve t h e Con t r a ct or of lia bilit y t o P RE P A for da m a ges
su st a in ed by P RE P A by vir t u e of a n y ot h er pr ovision of t h is Con t r a ct .
10. Deba n n en t Su spen sion , a n d In eligibilit y.
(a ) Th e Con t ca ct or r epr esen t s a n d wa r r a n t s t h a t t h e Con t r a ct or , it

pr in cipa ls/ a n d a ffilia t es h a ve n ot been deba r r ed, su spen ded, or pla ced
in in eU gibilit y st a t u s u n der t h e pr ovision s of 2 C.F .R. pt . 180 a n d 2
C.F .R. pt . 3000 (gover n m en t deba im en t a n d su spen sion r egu la t ion s).
Th e Con t r a ct or r epr esen t s a n d wa r r a n t s t h a t it wfll n ot en t er in t o a n y
con t r a ct s or su bcon t r a ct s wit h a n y in dividu a l or en t it y wh ich h a s been
deba r r ed/ su spen ded or deem ed in eligible u n der t h ose pr ovision s.
Du r m g t h e t er m of t h is Con t r a ct , t h e Con t r a ct or wffl. per iodica lly
r eview SAM-gov a n d loca l n ot ices t o ver ify t h e con t in u ed a ccu r a cy of
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P a ge 24
t h is r epr esen t a t ion . Th e Con t r a ct or sh a ll r equ ir e a U Su bcon t r a ct or s a t

ever y t ier t o com ply wit h t h is r equ ir em en t .
(b) Th is cer t ifica t ion is a m a t er ia l r epr esen t a t ion of fa ct r elied u pon by

P RE P A. K it is la t er det er m in ed t h a t t h e Con t r a ct or did n ot com ply
wit h 2 C.F .R. pt . 180 a n d 2 C.F .R. pt . 3000, in a ddit ion t o r em edies
a va ila ble t o t h e Com m on wea lt h of P u er t o Rico a n d t h e P RE P A, t h e
F eder a l Gover n m en t m a y pu r su e a va ila ble r em edies/ in clu din g bu t n ot
lim it ed t o su spen sion a n d/or deba r m en t ,
11. Repor t m g Requ ir em en t s. Th e Con t r a ct or sh a ll com plet e a n d su bm it a ll r epor t s, in

su ch for m a n d a ccor din g t o su ch sch edu le, a s m a y be r equ ir ed by P RE P A.
12. Review of la ws. Th e Con t r a ct or cer t ifies t h a t it will a ccess on lin e a n d r ea d ea ch la w

t h a t is dt ed in t h e a for em en t ion ed cla u ses a n d t h a t , in t h e even t it ca n n ot a ccess t h e
on lin e ver sion / it will n ot ify t h e P RE P A in or der t o obt a in pr in t ed copies of t h e la ws.
N ot r equ ir in g a pr in t ed copy of t h e la ws t o t h e P RE P A wU l be eviden ce t h a t fh e
Con t r a ct or wa s a ble t o fin d it on U n e a n d r ea d it a s r equ ir ed.
13. N ot ice of F ed er a l E m er een cy Ma n a eem en t Aeen cv (F E MA) Rep or t u iE :
Regu ir em en t s a n d Reeu la t iot t s:
(a ) P RE P A is u sin g F eder a l gr a n t fu n din g a wa r ded or a dm in ist er ed by

F E MA t o t h e Com m on wea lt h of P u er t o Rico a n d/or P RE P A t o pa y/ in
fu ll, for t h e cost s in cu r r ed u n der t h is Con t r a ct . As a con dit ion of
F E MA fu n din g u n der m a jor disa st er decla r a t ion F E MA-4339-DR-P R,
F E MA r equ ir es t h e Com m on wea lt h of P u er t o Rico a n d P RE P A t o
pr ovide va r iou s fin a n cia l a n d per for m a n ce r epor t in g. Th e Con h -a ct or
a gr ees t o p r ovid e a ll in for m a t ion , d ocu m en t a t ion / a n d r ep or t s
n ecessa r y t o sa t isfy t h ese r epor t in g r equ ir em en t s. F a ilu r e Ly t h e
Con t r a ct or t o pr ovide in for m a t ion n ecessa r y t o sa t isfy t h ese r epor t in g
r equ ir em en t s m a y r esu lt in loss of F eder a l fu n din g for t h is Con t r a ct ,
a n d su ch fa ilu r e sh a U be a m a t er ia l br ea ch of t h is Con t r a ct .
(b) Applica ble Regu la t ion s a n d P olicy. Applica ble r egu la t ion s, F E MA
policy, a n d ot h er sou r ces set t in g for t h t h ese r epor t in g r equ ir em en t s
in clu de/ bu t a r e n ot lim it ed t o:
(1)2 C.F .R. § 327 (F in a n cia l Repor t in g);

7 "^ .
""<;^ ;,/,;' -^
P r ofe s s ion a l S e r vice s C on t r a ct H O R N E F e d e r a l L L C . - <<;:! /
P a ge 25
(2)2 C.F .R. § 200.328 (Mon it or in g a n d Repor t in g P r ogr a m

P er for m a n ce);
(3) P er for m a n ce a n d fin a n cia l r epor t in g r equ ir em en t s set for t h in

2 C.F ,R. P a r t 206.
14. Access t o Recor ds.
(a ) Th e Con t r a ct or a gr ees t o pr ovide P RE P A, t h e Com m on wea lt h of P u er t o

Rico, t h e F E MA Adm in ist r a t or , t h e Com pt r oller Gen er a l of t h e U n it ed
St a t es, or a n y of t h eir a u t h or ized r epr esen t a t ives a ccess t o a n y book s,
docu m en t s, pa per s, a n d r ecor ds of fh e Con t r a ct or wh ich a r e du -ect ly
per t in en t t o t h is Con t r a ct for t h e pu r poses of m a k in g a u dit s/ exa m in a t ion s,
excer pt s, a n d t r a n scr ipt ion s.
(b) Th e Con t r a ct or a gr ees t o per m it a n y of t h e for egoin g pa r t ies t o r epr odu ce

by a n y m ea n s wh a t soever or t o copy excer pt s a n d t r a n scr ipU on s a s
r ea son a bly n eeded.
(c) Th e Con t r a ct or a gr ees t o pr ovide t h e F E MA Adm in ist r a t or or h is

a u t h or ized r epr esen t a t ives' a ccess t o wor k sit es per t a in in g t o t h e wor k
bein g com plet ed u n der t h e Con t r a ct .
15. Recor ds Ret en t ion . Th e Con t r a ct or a gr ees t o m a in t a in a ll book s, r ecor ds, a ccou n t s
a n d r epor t s a n d a fl ot h er r ecor ds pr odu ced or collect ed in con n ect ion wit h t h is
Con t r a ct for a per iod of n ot less t h a n t h r ee (3) yea r s a ft er t h e da t e of fin a l pa ym en t
a n d dose-ou t of a ll pen din g m a t t er s r ela t ed t o t h is Con t r a ct . If a n y lit iga t ion , cla im ,
or a u dit is r ea son a bly a n t icipa t ed t o a r ise or is st a r t ed befor e t h e expir a t ion of t h e 3-
yea r per iod, t h e r ecor ds m u st be r et a in ed u n t il a U U t iga t ion , cla im s, or a u dit fin din gs
in volvin g t h e r ecor ds h a ve been r esolved a n d fin a l a ct ion t a k en ,
16. P r ogr a m F r a u d a n d F a lse or F r a u du len t St a t em en t s or Rela t ed Act s. Th e Con t r a ct or

a ck n owledges t h a t 31 U .S.C. Ch a p. 38 (Adm in ist r a t ive Rem edies for F a lse Cla im s
a n d St a t em en t s) a pplies t o t h e Con t r a ct or 's a ct ion s per t a in in g t o t h is Con t r a ct .
17. P r ocu r em en t of Recover ed Ma t er ia ls. In t h e per for m a n ce of t in s Con t r a ct , t h e

Con t r a ct or sh a ll m a k e m a xim u m u se of pr odu ct s con t a in in g r ecover ed m a t er ia ls t h a t
a r e E n vir on m en t a l P r ot ect ion Agen cy ("E P A")- design a t ed it em s u n less t h e pr odu ct
ca n n ot be a cqu ir ed—(i) com pet it ively wit h in a t im efr a m e pr ovidin g for com plia n ce
wit h t h e Con t r a ct per for m a n ce sch edu le; (ii) m eet in g Con t r a ct per for m a n ce
^ ow:?
,if
P r ofe s s ion a l S e r vice s C on t r a ct H O R N E F e d e r a l L L C . "' ^

P a ge 26
r equ ir em en t s; or (iii) a t a r ea son a ble pr ice. In for m a t ion a bou t t h is r equ ir em en t ,

a lon g wit h t h e list of E P A-design a t ed it em s, is a va ila ble a t E P A's Com pr eh en sive
P r ocu r em en t Gu ideU n es web sit e, h t t ps://www.epa .gov/sim n /com pr eh en sive-
pr ocu r em en t -gu idelin e-cpg-pr ogr a m .
18. E n er gy E fficien cy. Th e Con t r a ct or a gr ees t o com ply wit h t h e r equ ir em en t s of

42 U .S.C. § 6201, wh ich con t a in policies r ela t in g t o en er gy efficien cy t h a t a r e defin ed
in t h e Gover n m en t of P u er t o Rico's en er gy con ser va t ion pla n issu ed in com plia n ce
wit h sa id st a h it e,
19. Com plia n ce wit h t h e Da vis-Ba con Act (a pplica ble t o con st r u ct ion con t r a ct s in
excess of $2,000 fu n ded by (i) gr a n t s fr om a ll F eder a l a een des ot h er t h a n F E MA;
a n d (ii) t h e followin g F E MA pr oer a m s: (1) E m er e:en cv Ma n a sem en t P r epa r edn ess
Gr a n t P r ogr a m , (2) H om ela n d Secu r it y Gr a n t P r oer a m ; (3) N on pr ofit Secu r it y
Gr a n t P r oer a m ; (4) Tr iba l H om ela n d Secu r it y Gr a n t P r oer a m ; (5) P or t Secu r ih ^
^ Gr a n t P r oa r a m ; a n d (6) Tr a n s it S ecu r it y Gr a n t F r oe:r a m ).
^
(a ) Th e Con t r a ct or sh a ll com ply wit h t h & Da vis-Ba con Act / 40 U .S.C. g§ 3141-
3148, a n d t h e r equ ir em en t s of 29 C.F .R. § 5.5 a s m a y be a pplica ble, wh ich a r e
in cor por a t ed by r efer en ce in t o t lu s Con t r a ct .
(b) Th e Con t r a ct or or Su b-con t r a ct or sh a ll in ser t m a n y su bcon t r a ct s t h e cla u se in

su bsect ion (a ) a n d su ch ot h er da u ses a s F E MA m a y by a ppr opr ia t e
in st r u ct ion s r equ ir e. Th e Con t r a ct or sh a ll r equ ir e a ll Su b con t r a ct or s t o
in clu de t h ese cla u ses in a n y lower t ier su bcon t r a ct s. Th e pr im e Con t r a ct or
sh a U be r espon sible for t h e com plia n ce by a n y Su b con t r a ct or or lower t ier
Su b con t r a ct or wit h a ll of t h ese con t r a ct cla u ses.
(c) A br ea ch of t h e con t r a ct cla u ses a bove m a y be gr ou n ds for t er m in a t ion of t h e

Con t r a ct / a n d for deba n n en t a s a Con t r a ct or a n d Su b-con t r a ct or a s pr ovided
m 29C.F .R,§5.12.
20. Com plia n ce wit h t h e Copela n d An t i-Kick ba ck Act (a pplica ble t o a ll con t r a ct s
su bject t o t h e Da vis-Ba con Act ).
(a ) Th e Con t r a ct or sh a ll com ply wit h 18 U .S.C. § 874, 40 U .S.C, g 3145, a n d t h e

r equ ir em en t s of 29 C.F .R. pt . 3, a s m a y be a pplica ble, a ll of wh ich a r e
in cor por a t ed by r efer en ce in t o t h is Con t r a ct .
,; ,;; if :' f ^ • l- J ..^

'^ ^ J ".f ?
• -..u ,^

P a ge 27
(b) Th e Con t r a ct or a n d Su b-con t r a ct or sh a ll in ser t in a n y su bcon t r a ct s t h e

for egoin g cla u se a n d su ch ot h er cla u ses a s F E MA m a y by a ppr opr ia t e
in st r u ct ion s, r equ ir e. Th e Con t r a ct or sh a ll r equ ir e a ll Su b-con t r a ct or s t o
in clu de t h ese cla u ses in a n y lower t ier su bcon t r a ct s. Th e Con t r a ct or sh a ll be
r es p on s ible for t h e com p lia n ce by a n y S u b-con t r a ct or or lower t ier
Su bcon t r a ct or wit h a ll of t h ese con t r a ct cla u ses.
(c) A br ea ch of t h e con t r a ct cla u ses a bove m a y be gr ou n ds for t er m in a t ion of t h e

con t r a ct a n d for deba r m en t a s a Con t r a ct or a n d Su bcon t r a ct or , a s pr ovided in
29 C.F .R. § 5.12.
21. E qu a l Oppor t u n it y. Du r in g t h e per for m a n ce of t h is Con t r a ct , t h e Con t r a ct or a gr ees

a s follows:
(a ) Th e Con t r a ct or will n ot discr im in a t e a ga in st a n y em ployee or a pplica n t for

em ploym en t beca u se of r a ce, color / r eligion / sex/ sexu a l or ien t a t ion / gen der
iden t it y, or n a t ion a l or igin . Th e Con t r a ct or wiU . t a k e a ffir m a t ive a ct ion t o
en su r e t h a t a pplica n t s a r e em ployed, a n d t h a t em ployees a r e t r ea t ed du r in g
em ploym en t , wit h ou t r ega r d t o t h eir r a cer color / r eligion , sex, sexu a l
or ien t a t ion / gen der iden t it y/ or n a t ion a l or igin . Su ch a ct ion sh a ll in clu de, bu t
n ot be lim it ed t o/ t h e followin g: em ploym en t / u pgr a din g, dem ot ion / or
t r a n sfer / r ecr u it m en t / or r ecr u it m en t a dver t isin g, la yoff or t er m in a t ion , r a t es
of pa y or ot h er for m s of com pen sa t ion , a n d select ion for t r a in in g, in clu dm g
a ppr en t icesh ip. Th e Con t r a ct or a gr ees t o post in con spicu ou s pla ces/
a va ila ble t o em ployees a n d a pplica n t s for em ploym en t , n ot ices t o be pr ovided
by t h e con t r a ct in g officer s et t in g for t h t h e p r ovis ion s of t h is
n on discr im in a t ion cla u se.
(b) Th e Con t r a ct or wiU , in a ll solicit a t ion s or a dver t isem en t s for em ployees

pla ced by or on beh a lf of t h e Con t r a ct or / st a t e t h a t a ll qu a lified a pplica n t s wiU
r eceive con sider a t ion for em ploym en t wit h ou t r ega r d t o r a ce/ color , r eligion /
sex, se?cu a l or ien t a t ion , gen der iden t it y, or n a t ion a l or igin .
(c) Th e Con t r a ct or will n ot disch a r ge or in a n y ot h er m a n n er discr im in a t e a ga in st

a n y em ployee or a pplica n t for em ploym en t beca u se su ch em ployee or
a pplica n t h a s in qu ir ed a bou t / discu ssed/ or disclosed t h e com pen sa t ion of t h e
em ployee or a pplica n t or a n ot h er em ployee or a pplica n t . Th is pr ovision sh a ll
n ot a p p ly t o in s t a n ces in wh ich a n em p loyee wh o h a s a cces s t o t h e
com pen sa t ion m fon n a t ion of ot h er em ployees or a pplica n t s a s a pa r t of su ch
P r ofe s s ion a l S e r vice s C on t r a ct H O R N E F e d e r a l L L C . 'L "-y

P a ge 28
em ployee's essen t ia l job fu n ct ion s discloses t h e com pen sa t ion of su ch ot h er

em ployees or a pplica n t s t o in dividu a ls wh o do n ot ot h er wise h a ve a ccess t o
su ch in for m a t ion / u n less su ch disclosu r e is in r espon se t o a for m a l com pla in t
or ch a r ge, in fu r t h er a n ce of a n in vest iga t ion / pr oceedin g, h ea r in g, or a ct ion ,
in clu din g a n in vest iga t ion con du ct ed by t h e em ployer / or is con sist en t wit h
t h e Con t r a ct or 's lega l du t y t o fu r n ish in for m a t ion .
(d) Th e Con t r a ct or wiU sen d t o ea ch la bor u n ion or r epr esen t a t ive of wor k er s
wit h wh ich it h a s a collect ive ba r ga in in g Con t r a ct or ot h er con t r a ct or
u n der st a n din g a n ot ice a dvisin g t h e la bor u n ion or wor k er s' r epr esen t a t ive of
t h e Con t r a ct or 's com m it m en t s u n der sect ion 202 of t h e U S E xecu t ive Or der
11246 of Sept em ber 24, 1965, a s a m en ded/ a n d sh a ll post copies of t h e n ot ice
in con spicu ou s pla ces a va ila ble t o em ployees a n d a pplica n t s for em ploym en t .
(e) Th e Con t r a ct or will com ply wit h a U pr ovision s of E xecu t ive Or der 11246/ a n d
of t h e r u les, r egu la t ion s, a n d r eleva n t or der s of t h e Secr et a r y of La bor .
(f) Th e Con t r a ct or will fu r n ish a ll in for m a t ion a n d r epor t s r equ ir ed by E xecu t ive
Or der 11246/ a n d by t h e r u les, r egu la t ion s, a n d or der s of t h e Secr et a r y of
La bor , or pu r su a n t t h er et o, a n d wffl per m it a ccess t o it s book s, r ecor ds, a n d
a ccou n t s by P RE P A, t h e Com m on wea lt h of P u er t o Rico, a n d t h e Secr et a r y of
La bor for pu r poses of in vest iga t ion t o a scer t a in com plia n ce wit h su ch r u les,
r egu la t ion s/ a n d or der s.
(g) In t h e even t of t h e Con t r a ct or 's n on -com plia n ce wit h t h e n on discr im in a t ion

cla u ses of t h is Con t r a ct or wit h a n y of su ch r u les, r egu la t ion s, or or der s, t h is
Con t r a ct m a y be ca n celed, t em u n a t ed or su spen ded in wh ole or in pa r t a n d
t h e Con t r a ct or m a y be decla r ed in eligible for fu r t h er Gover n m en t con t r a ct s in
a ccor da n ce wit h pr ocedu r es a u t h or ized in E xecu t ive Or der 11246, a n d su ch
ot h er sa n ct ion s m a y be im posed a n d r em edies in vok ed a s pr ovided in
E xecu t ive Or der 11246, or by r u le, r egu la t ion , or or der of t h e Secr et a r y of
La bor , or a s ot h er wise pr ovided by la w.
(h ) Th e Con t r a ct or wU l in clu de t h e pr ovision s of pa r a gr a ph s (a ) t h r ou gh (g) in

ever y su bcon t r a ct or pu r ch a se or der / u n less exem pt ed by r u les, r egu la t ion s,
or or der s of t h e Secr et a r y of La bor issu ed pu r su a n t t o sect ion 204 of E xeczit ive
Or der 11246/ so t h a t su ch pr ovision s will be bin din g u pon ea ch Su b-
con t r a ct or or ven dor . Th e Con t r a ct or will t a k e su ch a ct ion wit h r espect t o a n y
su bcon t r a ct or pu r ch a se or der a s m a y be dir ect ed by t h e Sea r et a r y of La bor a s

P a ge 29
a m ea n s of en for cin g su ch pr ovision s in clu din g sa n ct ion s for n on com plia n ce;
P r ovided, h owever , t h a t in t h e even t t h e Con t ca ct or becom es in volved in / or is
t h r ea t en ed wit h , lit iga t ion wit h a Su b-con t r a ct or or ven dor a s a r esu lt of su ch
dir ect ion , t h e Con t r a ct or m a y r equ est t h e U n it ed St a t es t o en t er in t o su ch
lit iga t ion t o pr ot ect t h e in t er est s of t h e Un it ed St a t es.
22. Age Discr im in a t ion Act of 1975. Th e Con t r a ct or sh a ll com ply wit h t h e pr ovision s of
t h e Age Disa -u n in a t ion Act of 1975. N o per son m t h e U n it ed St a t es sh a ll, on t h e
ba sis of a ge/ be exclu ded fr om pa r t icipa t ion in , be den ied t h e ben efit s of, or be
su bject ed t o discr im in a t ion u n der , a n y pr ogr a m or a ct ivit y r eceivin g feder a l
fin a n cia l a ssist a n ce.
23. Am er ica n s wit h Disa bilit ies Act . Th e Con t r a ct or sh a ll com ply wit h t h e a ppr opr ia t e
a r ea s of t h e Am er ica n s wit h Disa bilit ies Act of 1990, a s en a ct ed a n d fr om t im e t o
t im e a m en ded, a n d a n y ot h er a pplica ble feder a l r egu la t ion . A sign ed, wr it t en
cer t ifica t e st a t in g com plia n ce wit h t h e Am er ica n s wit h Disa bilit ies Act m a y be
r equ est ed a t a n y t ia h e du r in g t h e t er m of t h is Con t r a ct .
24. Tit le VI of t h e Civil Righ t s Act of 1964. Th e Con t r a ct or sh a ll com ply wit h t h e
pr ovision s of Tit le VI of t h e Civil Righ t s Act of 1964. N o per son sh a U , on t h e
gr ou n ds of r a ce, color , or n a t ion a l or igin , be exclu ded fr om pa r t icipa t ion in , be
den ied t h e ben efit s of, or be su bject ed t o discr im in a t ion u n der a n y pr ogr a m or
a ct ivit y r eceivin g feder a l fin a n cia l a ssist a n ce.
25. Sect ion 504 of t h e Reh a bilit a t ion Act of 1973, a s Am en ded. Th e Con t r a ct or a gr ees
t h a t n o ot h er wise qu a lified in dividu a l wit h disa bilit ies sh a ll, solely by r ea son of h is
disa bilit y, be den ied die ben efit s, or be su bject ed t o discr im in a t ion in clu din g
discr im m a t ion in em ploym en t , a n y pr ogr a m or a ct ivit y t h a t r eceives t h e ben efit s
fr om t h e feder a l fin a n cia l a ssist a n ce.
26. Dr u g-F r ee Wor k pla ce, Th e Con t r a ct or sh a ll m a in t a in a dr u g-fr ee wor k en vir on m en t

in a ccor da n ce wit h t h e Dr u g-F r ee Wor k pla ce Act of 1988 (41 U .S.C. § 8101 et seq.),
a n d im plem en t in g r egu la t ion s a t 2 C.F .R P a r t 3001.
27. Con t r a ct in g wit h Sm a ll a n d Min or it y F ir m s, Wom en 's Bu sin ess E n t er pr ises, a n d

La bor Su r plu s Ar ea F in n s.
(a ) Defin it ion s.
• / / • • './''<
^ • '.' ^ /.: /
^ _/' .
P r ofe s s ion a l S e r vice s C on t r a ct H O R N E F e d e r a l L L C . '-'<,'.; ,;'
P a ge 30
(1) Sm a ll Bu sin ess. A bu sm ess qu a lifies a s a sm a U bu sin ess u n der t h e

Sm a ll Bu sin ess Adm ir u sbr a t ion CTit er ia a n d size st a n da r ds a t 13 C.F .R.
P a r t 121.
(2) Wom en 's Bu sin ess E n t er pr ise. A bu sin ess t h a t is: (a ) a t lea st 51 per cen t
own ed by on e or m or e wom en a n d (b) wh ose m a n a gem en t a n d da ily
oper a t ion s a r e con t r olled by on e or m or e wom en ,
(3) Min or it y Bu sin ess: A bu sin ess t h a t is (a ) a t lea st 51 per cen t own ed by
on e or m or e m in or it y gr ou p m em ber s a n d (b) wh ose m a n a gem en t a n d
d a ily op er a t ion s a r e con t r olled by on e or m or e m in or it y gr ou p
m em ber s.
(4) La bor Ar ea Su r plu s F in n . A la bor su r plu s a r ea fir m is a fir m t h a t ,

t oget h er wit h it s fir st t ier Su bcon t r a ct or s, will per for m su bst a n t ia lly in
loca lit ies t h a t h a ve a "civilia n a ver a ge a n n u a l u n em ploym en t r a t e
du r in g t h e pr eviou s t wo ca len da r yea r s of 20 per cen t or m or e a bove
t h e a ver a ge a n n u a l civil u n em ploym en t r a t e for a ll st a t es" du r in g t h a t
sa m e per iod. 20 C.F .R. §g 654.4-654.5.
(b) Th e Con t r a ct or m u st t a k e a U n ecessa r y a ffir m a t ive st eps t o a ssu r e t h a t

m in or it y bu sin esses, wom en 's bu sin ess en t er pr ises, a n d la bor su r plu s a r ea
fir m s a r e u sed wh en possible.
(c) Affu m a t ive st eps m u st in clu de:
(1) P la cin g qu a lified sm a ll a n d m in or it y bu sin esses a n d wom en 's bu sin ess

en t er pr ises on solicit a t ion list s;
(2) Assu r in g t h a t sm a U a n d m in or it y bu sin esses, a n d wom en 's bu sin ess

en t er pr ises a r e solicit ed wh en ever t h ey a r e pot en t ia l sou r ces;
(3) Dividin g t ot a l r equ iiem en t s, wh en econ om ica lly fea sible, in t o sm a ller
t a sk s or qu a n t it ies t o per m it m a xim u m pa r t icipa t ion by sm a ll a n d
m in or ify bu sin esses, a n d wom en 's bu sin ess en t er pr ises;
(4) E st a blish in g deliver y sch edu les/ wh er e t h e r equ ir em en t per m it s, wh ich

en cou r a ge pa r t icipa t ion by sm a U a n d m in or it y bu sin esses/ a n d
wom en 's bu sin ess en t er pr ises;

P a ge 31.
(5) U s in g t ih e s er vices a n d a s s is t a n ce, a s a p p r op r ia t e, of s u ch

or ga n iza t ion s a s t h e Sm a ll Bu sin ess Adm in ist r a t ion a n d t h e Min or it y
Bu sm ess Developm en t Agen cy of t h e Depa r t m en t of Com m er ce; a n d
28. Righ t s t o In ven t ion s Ma de U n der a Con t r a ct . U n less ot h er wise pr ovided by la w,

t h is Con t r a ct is su bject t o t h e Ba yh -Dole Act , P u b. L. N o. 96-517, a s a m en ded, a n d
codified in 35 U .S.C. § 200 et seq., a n d t h e specific r equ ir em en t s gover n in g t h e
developm en t , r epor t in g, a n d disposit ion of r igh t s t o in ven t ion s a n d pa t en t s r esu lt u -ig
fr om feder a l fin a n cia l a ssist a n ce a wa r ds loca t ed a t 37 C.F .R. P a r t 401 a n d t h e
st a n da r d pa t en t r igh t s cla u se loca t ed a t 37 C.F .R. § 401.14. 35 U .S.C. § 200 et seq.
29. Com olia n ce wit h La ws , Reeu la t ion a n d E xecu t ive Or d er s . Th e Con t r a ct or

a ck n owledges t h a t F E MA fin a n cia l a ssist a n ce will be u sed t o fu n d t h is Con t r a ct .
Th e Con t r a ct or sh a ll com ply will a ll a pplica ble F eder a l a n d Com m on wea lt h of
P u er t o Rico la w, r egu la t ion s, execu t ive or der s/ poU des, pr ocedu r es, a n d dir ect ives,
in clu din g bu t n ot lim it ed t o a ll F eder a l Cost P r in ciples set for t h in 2 C.F .R. P a r t 200,
a n d a ll a pplica ble F E MA r egu la t ion s in 44 C.F .R. Ch a pt er I. 2 C.F .R. P a r t 200.
30. P r ovision s Requ ir ed by La w Deem ed In ser t ed. E a ch a n d ever y pr ovision r equ ir ed

by la w r egu la t ion , execu t ive or der , policy, pr ocedu r e, dir ect ive. F eder a l gr a n t a wa r d
or a gr eem en t , or cooper a t ive a gr eem en t wit h a n y F eder a l a gen cy t o be in ser t ed in
t h is Con t r a ct sh a U be deem ed t o be in ser t ed h er ein a n d t h e Con t r a ct sh a ll be r ea d
a n d en for ced a s t h ou gh it wer e in clu ded h er ein . U , t h r ou gh m ist a k e or ot h er wise,
a n y pr ovision is n ot in ser t ed/ or is n ot cor r ect ly in ser t ed, t h en u pon t h e a pplica t ion
of eit h er pa r t y t h e Con t r a ct sh a ll be a m en ded t o m a k e su ch in ser t ion or cor r ect ion .
31. Azr eem en t t o E xecu t e Ot h er Requ ir ed Docu m en t s.. Con t r a ct or a n d a ll Su b-

con t r a ct or s/ by en t er in g in t o t h e Con t r a ct , u n der st a n d a n d a gr ee t h a t fu n dm g for t h e
Ser vices is pr ovided u n der F eder a l pr ogr a m s wit h specific con t r a ct in g r equ ir em en t s.
To t h e ext en t a n y su ch r equ ir em en t is n ot ot h er wise set for t h h er ein , Con t r a ct or
a gr ees t o execu t e su ch a m en dm en t s or fu r t h er a gr eem en t s a s m a y be n ecessa r y t o
en su r e t h a t t h e P RE P A r eceived F eder a l fu n din g for t h is Con t r a ct .
32. U .S. Depa r t a ien t of H om ela n d Secu r it y Sea l, Logo, a n d F la gs. Th e Con t r a ct or sh a ll
n ot u se t ih e U .S. Depa r t m en t of H om ela n d Secu r it y sea l(s), logos, cr est s, or
r epr odu ct ion s of fla gs or lik en esses of DH S a gen cy officia ls wit h ou t specific F E MA
pr e- a ppr ova l.

P a ge 32
33. N o Obliga t ion by t h e F eder a l Gover n m en t . Th e P RE P A a n d t h e Con t r a ct or

a ck n owledge a n d a gr ee t h a t t h e F eder a l Gover n m en t Is n ot a pa r t y t o t h is Con t r a ct .
34. Modifica t ion s a n d Am en dm en t s. N o a m en dm en t t o or m odifica t ion or ot h er

a lt er a t ion of t h e Con t r a ct sh a fl be va lid or bin din g u pon t h e pa r t ies u n less m a de in
wr it in g, sign ed by t h e pa r t ies a n d, if a pplica ble, a ppr oved by t h e Com m on wea lt h of
P u er t o Rico.
35. Assign m en t . Th e Con t r a ct or sh a ll n ot a ssign , h ypot h eca t e or en cu m ber a n y in t er est

in t h is Con t r a ct / a n d sh a ll n ot t r a n sfer a n y in t er est or a n y of it s lia bilit ies or
obliga t ion s u n der t h is Con t r a ct (wh et h er by a ssign m en t or n ova t ion ) wit h ou t t h e
pr ior wr it t en a ppr ova l of P RE P A.
36. Dispu t es.
(a ) In t h e even t of a dispu t ed or con t est ed bfflm g, t h e P RE P A sh a ll wit h h old on ly

t h e con t est ed a m ou n t a n d sh a U pa y a n y u n dispu t ed a m ou n t . N o in t er est
sh a ll a ccr u e on a n y u n pa id ba la n ce.
(b) An y da im s or ca u ses of a ct ion t h a t m a y a r ise ou t of t h is Con t r a ct m u st be

h ea r d by a cou r t of com pet en t ju r isdict ion in t h e Com m on wea lt h of P u er t o
Rico, a n d t h e Con t r a ct or h er eby ir r evoca bly s u bm it s t o t h e exclu s ive
ju r isdict ion of t h e Un it ed St a t es Dist r ict Cou r t for t h e Dist r ict of P u er t o Rico /
t h e cou r t s of t h e Com m on wea lt h of P u er t o Rico in con n ect ion wit h a n y cla im s
or ca u ses of a ct ion t h a t m a y a r ise ou t of t h is Con t r a ct ,
37. Govem m g La w. Th is Con t r a ct sh a ll be gover n ed by/ in t er pr et ed a n d en for ced in

a ccor da n ce wit h / t h e la ws of t h e Com m on wea lt h of P u er t o Rico a n d a n y a pplica ble
F eder a l la ws a n d r egu la t ion s. In t h e even t of con flict bet ween P u er t o Rica n la w a n d
F eder a l la ws a n d r egu la t ion s/ t h e la t t er sh a U pr eva il.
38. Sever a bilit y. In t h e even t t h a t a n y on e or m or e of t h e pr ovision s con t a in ed in t h is

Con t r a ct a r e for a n y r ea son h eld t o be in va lid, illega l or u n en for cea ble m a n y
r espect , su ch in va lidit y, U lega lit y or u n en for cea bilit y wU l n ot a ffect ot h er pr ovision s
of t h is Con t r a ct . If a n y cla u se is n ot a pplica ble t o t h e specific t ype of Con t r a ct in n o
wa y t h a t will a ffect t h e a pplica bilit y of a ll a pplica ble cla u ses wit h m t h is Con t r a ct .
39. Cer t ifica t ion of Gover n m en t Agr eem en t s: Th e Con t r a ct or h er eby cer t ifies t h a t , a t
fee t im e of execu t ion of t h is Agr eem en t / it does n ot h a ve a n y ot h er a gr eem en t wit h
^ ."'..
P r ofe s s ion a l S e r vice s C on t r a ct H O R N E F e d e r a l L L C . ' "</

P a ge 33
a n y a gen cy, pu blic cor por a t ion , m u n icipa lit y, or in st r u m en t a lit y of t h e Gover n m en t
of P u er t o Rico.
40. Dispen sa t ion : An y a n d a ll n ecessa r y dispen sa t ion s h a ve been obt a in ed fr om a n y

gover n m en t en t it y a n d t h a t sa id dispen sa t ion s sh a ll becom e pa r t of t h e con t r a ct in g
r ecor d,
41. Ru les of P r ofession a l E t h ics: Th e Con t r a ct or a ck n owledges a n d a ccept s t h a t it is

la iowled gea ble of fh e r u les of et iu cs . of h is /h er p r ofes s ion a n d a s s u m es
r espon sibilit y for h is/h er own a ct ion s.
42. N ot ices. All n ot ices a n d ot h er com m u n ica t ion s h er eu n der sh a ll be in wr it in g a n d

sh a U be deem ed given wh en deliver ed per son a lly or sen t by t elecopy/ or sen t ,
post a ge pr epa id, by r egist er ed, cer t ified or expr ess m a il (r eh .u m r eceipt r equ est ed)
or r epu t a ble over n igh t cou r ier ser vice a n d sh a U be deem ed given wh en so deliver ed
^ by h a n d/ or t elecopied, or if m a iled/ t h r ee da ys a ft er m a ilin g (on e bu sin ess da y in

t h e ca se of expr ess m a il or over n igh t cou r ier ser vice) t o t h e pa r t ies a t t h e followin g
a ddr esses:
If t o Con t r a ct or ;
H ORNE F eder a l LLC
S. N eil F or bes
1215 19t h St r eet Nor t h west 3r d F loor
Wa sh in gt on D.C. 20036
Ift oP RE P A:
J u st o L. Gon za lez Tor r es

Act in g E xecu t ive DLr ect or
P O Box 364267
Sa n J u a n , P u er t o Rico 00936-4267
43. Cou n t er pa r t s. Th is Con t r a ct m a y be execu t ed in a n y n u m ber of cou n t er pa r t s/ ea ch

of wh ich sh a U be deem ed t o be a n or igin a l, bu t a U of wh ich t oget h er sh a ll con st it u t e
on e a n d t h e sa m e in st r u m en t .
44. E n t ir e Con t r a ct . Su bject t o a n y a ddit ion a l F eder a l or Com m on wea lt h r equ ir em en t s

n ot specified h er ein , t h is Con t r a ct a n d it s a t t a ch m en t s, (a n d a n y execu t ed
^

P a ge 34
a m en dm en t s t o eit h er ), con st it u t es t h e en t ir e Con t r a ct bet ween t h e P a r t ies a n d

su per sedes a ll pr ior a gr eem en t s a n d u n der st a n din gs, or a l or wr it t en , wit h r espect t o
t h e su bject m a t t er h er eof. Th is Con t r a ct will in u r e t o t h e ben efit of/ a n d be bin din g
u pon / t h e P a r t ies a n d t h eir r espect in g su ccessor s a n d a ssign s.
IN WITN E SS TH E RE OF , t h e pa r t ies h er et o execu t e t h is Con t r a ct a s of t h e 1^ of

c'-'j^ H t W^ '- 2 0 1 8 .
P U E RTO RICO E LE CTRIC P OWE R H ORN E F E DE RAL LLC

AUTH ORITY
4u 4o S jD^ -^ f^
J u ^ t o Lu is Gor fea lea J 6r r ^ S. N eil F or bes
(A<<h n g E xecu t ive Dir ect or P a r t n er In Ch a r ge/Ma n a ger
Ta x Id N u m ber : Ta x Id. N u m ber :

P O Box 366069, Sa n J u a n P R 00936-6069
Cer t ifico qu e el Con t r a t o N u m .c^ u /ir ~'///y «^ es cop ia H el y exa ct a a la
cop ia qu e obr a en n u es t r os a r ch ivos . E l m is m o con s t a d e -/ 7 p a gin a s .
Da d a en S a n J u ;in , P u er t o Rico, h oy / d e /T^ ->&-t '^ -6 d e
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o E jecu t ivo Au t or iza d o
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GOVERNMENT OF PUERTO RICO

2018-P 00028B
AMENDMENT NO. 2 TO EMERGENCY MASTER SERVICE AGREEMENT FOR
P RE P A'S E LE CTRICAL GRID RE P AIRS - H URRICANE MARIA
APPEAR
AS F IRST P ARTY: Th e P u er t o Rico E lect r ic P ower Au t h or it y (P RE P A), a pu blic
cor por a t ion a n d gover n m en t in st r u m en t a lit y of t h e Com m on wea lt h of P u er t o Rico,
cr ea t ed by Act 83 of Ma y 2,1941, a s a m en ded, r epr esen t ed in t h is a ct by it s E xecu t ive
Dir ect or , J u st o Lu is Gon za lez Tor r es, of lega l a ge, m a r r ied, en gin eer a n d r esiden t of
J u a n a Dia z, P u er t o Rico.
AS SE COND P ARTY: Cobr a Acqu isit ion s LLC, a lim it ed lia bilit y com pa n y or ga n ized
a n d exist in g u n der t h e la ws of t h e St a t e of Dela wa r e wit h a pla ce of bu sin ess a t 14201
Ca liber Dr ive, Su it e 300, Okla h om a Cit y, Okla h om a 73134, h er ein r epr esen t ed byAr t y
St r a eh la , of lega l a ge, m a r r ied, a n d a r esiden t of Okla h om a Cit y, Okla h om a (h er ein a ft er
r efer r ed t o collect ively a s t h e "Con t r a ct or ") wh ose a u t h or it y of r epr esen t a t ion is
eviden ced by cor por a t e r esolu t ion .
WH E RE AS; On Oct ober 19, 2017, P RE P A a n d t h e Con t r a ct or en t er ed in t o a n

E m er gen cy Ma st er Ser vice Agr eem en t for P RE P A's E lect r ica l Gr id Repa ir s - H u r r ica n e
Ma r ia (t h e "Or igin a l Con t r a ct "), a s a m en ded by Am en dm en t N o. 1. t o t h e Or igin a l
Con t r a ct en t er ed in t o on Novem ber 1,2017 (a s so a m en ded, t h e "Con t r a ct ").
/ WH E RE AS: P RE P A a n d t h e Con t r a ct or a gr ee t h a t a n ew Ar t icle 71 n eeds t o be a dded

\ ^ y t o t h e Con t r a ct .
WITNESSETH
In con sider a t ion of t h e m u t u a l coven a n t s h er ein a ft er st a t ed, t h e P a r t ies a gr ee a s
follows:

1. P RE P A a n d Con t r a ct or a gr ee t h a t a effect ive Decem ber 8, 2017 n ew Ar t icle 71 is
h er eby a dded t o t h e Con t r a ct t o r ea d a s follows:
ARTICLE 71: AD 17-28.
P u r su a n t t o Adm in ist r a t ive Det er m in a t ion No. 17-28, issu ed by t h e P u er t o Rico

Depa r t m en t of Tr ea su r y on N ovem ber 10, 2017, Con t r a ct or a n d P RE P A bot h
h er eby a ck n owledge t h a t Con t r a ct or is en ga ged in a t r a de or bu sin ess in
P u er t o Rico a s a for eign com pa n y a n d is pr ovidin g a n essen t ia l ser vice t o t h e
^!
Am en dm en t No. 2 t o E m er gen cy Ma st er Ser vice Agr eem en t for P RE P A's E lect r ica l Gr id
Repa ir s - H u r r ica n e Ma r ia
P a ge 2 of 2
Gover n m en t of P u er t o Rico u n der t h e Con t r a ct ; n a m ely, Con t r a ct or is en ga ged in

t h e r epa ir , r ebu ildin g, a n d r e-con st r u ct ion of t h e elect r ica l gr id t h r ou gh ou t t h e
Com m on wea lt h of P u er t o Rico.
P u r su a n t t o t h e pr ovision s of Adm in ist r a t ive Det er m in a t ion No. 17-28, Con t r a ct or

h er eby elect s t o be t r ea t ed, for pu r poses of in com e t a x, a s en ga ged in /dedica t ed
t o a t r a de or bu sin ess in P u er t o Rico wit h r espect t o pr ovidin g essen t ia l ser vices
r en der ed in P u er t o Rico. Con t r a ct or will t h er eby file a P u er t o Rico cor por a t ion
in com e t a x r et u r n a n d com ply wit h t h e r equ ir em en t s of Adm in ist r a t ive
Det er m in a t ion N o, 17-28.
2. E xcept a s set for t h h er ein , t h e Con t r a ct r em a in s in fu ll for ce a n d effect in

a ccor da n ce wit h it s t er m s in clu din g, for t h e a voida n ce of dou bt , t h e t er m s set
forth in Exhibit B to the Contra ct.
IN WITN E SS WH E RE OF , t h e P a r t ies h er et o h a ve execu t ed t h is Am en dm en t a s of

t h e 8t h da y of Decem ber , 2017.
P u er t o Rico E lect r ic P ower Au t h or it y Cobr a Acqu isit ion s LLC
jys t o Lu is G'on z^ : Tfeii-r es Ar t y S t r a eh la

E xecu t ive Dir ect or Ch ief E xecu t ive Officer
E m ployer Socia l Secu r it y E m ployer Socia l Secu r it y
TCO 362830983^ 2

P O Box 366069, Sa n J u a n P R 00936-6069
Cer t ifico qu e el Con t r a t o N u m . ^ ^ ^ ~/^ ^ ''/}es copia fiel y exa ct a a la
cop ia qu e obr a en n u es t r os a r ch ivos . E l m is m o con s t a d e >— p a gin a s .
Da d a en S a n J u a n , P u er t o Rico, h oy / d e /^ viV-i^ d e ?-6^ .
^ ^ c0^ .
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2018-P 00028C
APPEAR

cr ea t ed by Act 83 of Ma y 2,1941, a s a m en ded, r epr esen t ed in t h is a ct by it s E xecu t ive

Dir ect or , J u st o Lu is Gon z^ lez Tor r es, of lega l a ge, m a r r ied, en gin eer a n d r esiden t of
AS SE COND P ARTY: Cobr a Acqu isit ion s LLC, a lim it ed lia bilit y com pa n y or ga n ized
a n d exist in g u n der t h e la ws of t h e St a t e of Dela wa r e wit h a pla ce of bu sin ess a t 14201
Ca liber Dr ive, Su it e 300, Okla h om a Cit y, Okla h om a 73134, h er ein r epr esen t ed byAr t y
Sfr a eh la , of lega l a ge, m a r r ied, a n d a r esiden t of Okla h om a Cit y, Okla h om a (h er ein a ft er
r efer r ed t o collect ively a s t h e "Con t r a ct or ").
WH E RE AS: On Oct ober 19, 2017, P RE P A a n d t h e Con t r a ct or en t er ed in t o a n

Ma r ia (t h e "Or igin a l Con t r a ct ).
WH E RE AS: On N ovem ber 1, 2017 P RE P A a n d t h e Con t r a ct or execu t ed a n
Am en dm en t No. 1 t o t h e Or igin a l Con t r a ct ,
WH E RE AS: On Decem ber 8, 2017 P RE P A a n d t h e Con t r a ct or execu t ed a n d
Am en dm en t No. 2 t o t h e Or igin a l Con t r a ct , a s a m en ded.
WH E RE AS: P RE P A a n d t h e Con t r a ct or a gr ee t h a t fu r t h er a m en dm en t s t o t h e
Or igin a l Con t r a ct a r e n ecessa r y, specifica lly t o Ar t icle 59 a s su ch a r t icle wa s a m en ded
by Am en dm en t No. 1.
w^
Wf!:^ r
• '<./,';; ,v
Am en dm en t No, 3 t o E m er gen cy Ma st er Ser vice Agr eem en t for P RE P A'S E lect r ica l
Gr id Repa ir s - H u r r ica n e Ma r ia
P a ge 2 of 2
WITNESSETH

follows:
1. P RE P A a n d Con t r a ct or a gr ee t h a t effect ive a s of Oct ober 17, 2017 Ar t icle 59(1)
of t h e Or igin a l Con t r a ct a s a m en ded by Am en dm en t N o. 1 is h er eby fu r t h er
a m en ded by st r ik in g t h e wor ds "a n d for u p t o t h r ee (3) yea r s a ft er Con t r a ct or 's
r eceipt of fin a l pa ym en t u n der t h e Con t r a ct " a n d r epla cin g t h em wit h t h e wor ds
"a n d for u p t o t h r ee (3) yea r s fr om t h e da t e of su bm ission of t h e fin a l expen dit u r e
r epor t pr ovided t o F E MA,"
2. P RE P A a n d Con t r a ct or a gr ee t h a t Ar t icle 59 of t h e Or igin a l Con t r a ct is fu r t h er

a m en ded by a ddin g a cla u se (3);
3) Con sist en t wit h Ar t icle 9(2) of t h is Con t r a ct t h e Con t r a ct or a gr ees t o pr ovide

t h e F E MA Adm in ist r a t or or h is a u t h or ized r epr esen t a t ives a ccess t o
con st r u ct ion or ot h er wor k sit es per t a in in g t o t h e wor k bein g com plet ed u n der
t h e Con t r a ct .
3. E xcept a s set for t h h er ein , t h e Or igin a l Con t r a ct a s a m en ded r em a in s in fu ll for ce

a n d effect in a ccor da n ce wit h it s t er m s,
IN WITNE SS WH E RE OF , t h e P a r t ies h er et o h a ve execu t ed t h is Am en dm en t on

t h is 21 da y of Decem ber , 2017.
U^ feJ ^ ^ 19^ —
J ^ t o Lu is Ggfo?41ez^ t y St r a eh la
E xecu t ive Difect or " Ch ief E xecu t ive Officer
E m ployer Socia l Secu r it y E m ployer ID Nu m ber
TCO 36Z830982V1

P O Box 366069, Sa n J u a n P R 00936-6069
Cer t ifico qu e el Con t r a t o N u m .^ O/J -'/?^ -?~^ - es cop ia fiel y exa ct a a la
cop ia qu e obr a en n u es t r os a r ch ivos . E l m is m o con s t a d e /- p a gin a s .
Da d a en S a n J u a n , P u er t o Rico, h oy / d e /Y^ l'^ o d e .-W?'.
^ L c0^ ,.A^ A. yL^ b^ k ^ .', .-

'^ is t s 'a d a i' d e Dc'^ iii'-''.'..
'<i-SO C! P .O0
Cu a n t ia : $245,429,800.00,
N u m . Cu en t a : 01-1747-^ 9§-5 55-474
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• • -• '. '! ' '! i/

P UE RTO RICO E LE CTRIC P OWE R AUTH ORITi'
2018-P 00028D
APPEAR

cr ea t ed by Act 83 of Ma y 2, 1941, a s a m en ded, r epr esen t ed in t h is a ct by it s E xecu t ive
Dir ect or , J u st o Lu is Gon za lez Tor r es, of lega l a ge, m a r r ied, en gin eer a n d r esiden t of
AS SE COND P ARTY: Cobr a Acqu isit ion s LLC (Con t r a ct or ), a lim it ed lia bilit y com pa n y
or ga n ized a n d exist in g u n der t h e la ws of t h e St a t e of Dela wa r e wit h a pla ce of bu sin ess
a t 14201 Ca liber Dr ive, Su it e 300, Okla h om a Cit y, Okla h om a 73134, h er ein r epr esen t ed
by Ar t y St r a eh la , of lega l a ge, m a r r ied, a n d a r esiden t of Okla h om a Cit y, Okla h om a .
WH E RE AS: On Oct ober 19, 2017, P RE P A a n d t h e Con t r a ct or en t er ed in t o a n

Ma r ia (t h e "Or igin a l Con t r a ct ).
WH E RE AS: P RE P A a n d t h e Con t r a ct or execu t ed a n Am en dm en t N o. 1 t o t h e Or igin a l

Con t r a ct da t ed Novem ber 1, 2017, a n Am en dm en t No. 2 t o t h e Or igin a l Con t r a ct da t ed
a s of Decem ber 8, 2017 a n d a n Am en dm en t N o. 3 t o t h e Or igin a l Con t r a ct da t ed
Decem ber 21, 2017 (t h e Or igin a l Con t r a ct , a s so a m en ded, t h e "Con t r a ct ").
WH E RE AS: P RE P A a n d t h e Con t r a ct or a gr ee t h a t a fu r t h er a m en dm en t t o t h e
Con t r a ct is n ecessa r y, in clu din g t o Ar t icle 3.
TOO 362850620v1
Am en dm en t No. 4 t o E m er gen cy Ma st er Ser vice Agr eem en t for P RE P A'S E lect r ica l
Gr id Repa ir s ~ H u r r ica n e Ma r ia
P a ge 2 of 7
WITNESSETH

follows:
P RE P A a n d t h e Con t r a ct or a gr ee t h a t Ar t icle 3 of t h e Or igin a l Con t r a ct is h er eby

a m en ded by st r ik in g t h e dolla r a m ou n t of "$200,000,000 (Con t r a ct Am ou n t )"
a ppea r in g on t h e seven t h (7 ) lin e of su ch a r t icle a n d r epla cin g it wit h t h e followin g
dolla r a m ou n t : "$445,429,800 (Con t r a ct Am ou n t )".
P RE P A a n d t h e Con t r a ct or a gr ee t h a t Ar t icle 39 of t h e Or igin a l Con t r a ct is h er eby

a m en ded by st r ikin g t h e t h ir d pa r a gr a ph t h er eof.
As fu r t h er r equ ir ed by Sect ion Xl of J oin t Mem or a n du m 2017-001 by t h e Gover n or 's

Ch ief of St a ff (t h e "Ch ief of St a ff") a n d t h e Office of Ma n a gem en t a n d Bu dget , t h e
P a r t ies a gr ee t o in ser t t h e followin g Ar t icle 72 t o t h e Con t r a ct :
ARTICLE 72: In t er a gen cy Ser vices
Bot h con t r a ct in g P a r t ies a ck n owledge a n d a ccept t h a t t h e con t r a ct ed

ser vices m a y be r en der ed t o a n y en t it y of t h e E xecu t ive Br a n ch wit h wh ich
t h e con t r a ct in g en t it y en t er s in t o a n in t er a gen cy a gr eem en t wit h or a s
det er m in ed by t h e office of t h e Ch ief of St a ff. Th ese ser vices sh a ll be
r en der ed u n der t h e sa m e t er m s a n d con dit ion s wit h r espect t o wor k h ou r s
a n d com pen sa t ion , a s set for t h in t h is a gr eem en t . F or pu r poses of t h is
pr ovision , t h e t er m "en t it y of t h e E xecu t ive Br a n ch " in clu des a ll a gen cies
of t h e Gover n m en t of P u er t o Rico a s well a s a ll in st r u m en t a lit ies a n d
pu blic cor por a t ion s a n d t h e Office of t h e Gover n or .
As fu r t h er r equ ir ed by Sect ion Xl of J oin t Mem or a n du m 2017-001 by t h e Gover n or 's

Ch ief of St a ff a n d t h e Office of Ma n a gem en t a n d Bu dget , t h e P a r t ies a gr ee t o in ser t
t h e followin g Ar t icle 73 t o t h e Con t r a ct :
ARTICLE 73; Ter m in a t ion by Ch ief of St a ff
Th e office of t h e Ch ief of St a ff sh a ll h a ve t h e a u t h or it y t o t er m in a t e t h is
Con t r a ct a t a n y t im e. In t h e even t t h e Ch ief of St a ff exer cises t h is
a u t h or it y, su ch t er m in a t ion sh a ll be deem ed a t er m in a t ion by P RE P A
u n der Ar t icles 14 a n d 15.
P a ge 3 of 7
5. A n ew exh ibit is h er eby a dded t o t h e Con t r a ct in t h e for m of E xh ibit B-1 a t t a ch ed

h er et o, su ch E xh ibit B-1 t o be effect ive on J a n u a r y 1, 2018.
6. Th e P a r t ies a gr ee t h a t P RE P A will m a ke pa ym en t for t h e wor k per for m ed u n der t h is

Am en dm en t on a Tim e a n d Ma t er ia l ba sis a t t h e r a t es set for t h in E xh ibit B-1 , a n d
t h e t ot a l a m ou n t t o be pa id u n der t h is Am en dm en t sh a ll n ot exceed t h e Con t r a ct
Am ou n t . P RE P A sh a ll h a ve n o obliga t ion t o pa y t h e Con t r a ct or a n y a m ou n t s in
excess of t h e Con t r a ct Am ou n t . Th e Con t r a ct or wilt be t h e on ly on e r espon sible for
a n y wor k it or a n y of it s su bcon t r a ct or s, if a n y, does in excess of t h e Con t r a ct
Am ou n t .
7. Wit h in 10 da ys of t h e execu t ion of t h is Am en dm en t t h e Con t r a ct or sh a ll obt a in a n d

su bm it t h e followin g docu m en t s a n d cer t ifica t ion s, pr ovided, h owever , t h a t if Cobr a
pr ovides eviden ce t h a t it su bm it t ed a t im ely r equ est for a docu m en t or cer t ifica t ion
fr om t h e a pplica ble gover n m en t office a n d sa id office is u n a ble t o pr ovide t h e
docu m en t or cer t ifica t ion in t im e for Cobr a t o m eet t h e 10 da y dea dlin e, su ch
cir cu m st a n ces sh a ll con st it u t e a n excu sa ble dela y a n d Cobr a sh a ll su bm it t h e
docu m en t or cer t ifica t ion im m edia t ely u pon r eceipt fr om t h e gover n m en t office:
A. Th e Con t r a ct or sh a ll su bm it t h e followin g cer t ifica t ion s issu ed by t h e Tr ea su r y

Depa r t m en t of P u er t o Rico: (a ) a Cer t ifica t ion wh ich in dica t es t h a t t h e Con t r a ct or
does n ot owe t a xes t o t h e Com m on wea lt h of P u er t o Rico, or is pa yin g su ch t a xes
by a n in st a llm en t pla n a n d is in fu ll com plia n ce wit h it s t er m s; (b) a n In com e Ta x
Ret u r n F ilin g Cer t ifica t e, issu ed by t h e Tr ea su r y Depa r t m en t of P u er t o Rico
a ssu r in g t h a t t h e Con t r a ct or h a s filed h is In com e Ta x Ret u r n for t h e la st five (5)
yea r s; (c) a Sa les a n d Use Ta x F ilin g Cer t ifica t e a ssu r in g t h a t t h e Con t r a ct or h a s
filed h is P u er t o Rico Sa les a n d U se Ta x for t h e la st sixt y (60) con t r ibu t or y
per iods; (d) a Cer t ifica t e of Mer ch a n t 's Regist r a t ion ;
B. Cer t ifica t ion s issu ed by t h e Mu n icipa l Reven u es Collect ion Cen t er (MRCC): (a )
a Cer t ifica t ion a ssu r in g t h a t t h e Con t r a ct or does n ot owe a n y t a x a ccr u in g du r in g
t h e la st five (5) yea r s t o su ch gover n m en t a l a gen cy or ot h er docu m en t a t ion
a ccept a ble t o P RE P A pr ovidin g eviden ce t h a t a n y t a xes a llegedly owed a r e
cu r r en t ly u n der a dm in ist r a t ive r eview, a n d; (b) a P er son a l P r oper t y Ta x F ilin g
Cer t ifica t ion t h a t in dica t es t h a t t h e Con t r a ct or h a s filed t h eir P er son a l P r oper t y
Ta x Ret u r n for t h e la st five (5) con t r ibu t or y t er m s.
C. Th e Con t r a ct or a lso cer t ifies it does n ot h a ve ou t st a n din g debt s r ega r din g it s

t r ea t m en t of u n em ploym en t in su r a n ce pr em iu m s, wor k er s' com pen sa t ion
pa ym en t s, Socia l Secu r it y for ch a u ffeu r s in P u er t o Rico.
P a ge 4 of 7
D. Th e Con t r a ct or sh a ll su bm it a Cer t ifica t ion issu ed by ASUME a ssu r in g t h a t t h e

Con t r a ct or is in com plia n ce wit h t h e wit h h oldin gs r equ ir ed by la w a s a n
em ployer .
E . Con t r a ct or sh a ll su bm it a Cer t ifica t e issu ed by t h e Depa r t m en t of La bor a n d

H u m a n Resou r ces of P u er t o Rico a ssu r in g t h a t t h e Con t r a ct or h a s pa id t o t h e
Depa r t m en t of La bor a n d H u m a n Resou r ces of P u er t o Rico it s em ployees'
con t r ibu t ion s a ccr u in g du r in g t h e la st five (5) yea r s, in a ccor da n ce wit h t h e
P u er t o Rico E m ploym en t Secu r it y Act (u n em ploym en t , t em por a r y disa bilit y or
sickn ess or socia l secu r it y for dr iver s/ch a u ffeu r s); or is pa yin g su ch con t r ibu t ion s
by a n in st a llm en t pla n in fu ll com plia n ce wit h it s t er m s.
F . Con t r a ct or sh a ll su bm it a Good St a n din g Cer t ifica t e issu ed by t h e Depa r t m en t of

St a t e of P u er t o Rico.
G. Con t r a ct or sh a ll pr ovide a Cer t ifica t e of In cor por a t ion or Cer t ifica t e of

Or ga n iza t ion or Cer t ifica t e of Au t h or iza t ion t o do Bu sin ess in P u er t o Rico issu ed
by t h e P u er t o Rico Depa r t m en t of St a t e; a n d Good St a n din g Cer t ifica t e issu ed by
t h e P u er t o Rico Depa r t m en t of St a t e.
H . Con t r a ct or sh a ll su bm it a swor n st a t em en t wh er eby it sh a ll in for m wh et h er it or

a n y pr esiden t , vice-pr esiden t , dir ect or , execu t ive dir ect or or m em ber of a boa r d
of officia ls or boa r d of dir ect or s, or per son s t h a t or a n y per son per for m in g
equ iva len t fu n ct ion s for Con t r a ct or h a s been con vict ed of or h a s pled gu ilt y t o
a n y of t h e cr im es list ed in Ar t icle 6.8 of Act 8-2017, a s a m en ded, k n own a s t h e
Act for t h e Adm in ist r a t ion a n d Tr a n sfor m a t ion of H u m a n Resou r ces in t h e
Gover n m en t of P u er t o Rico or a n y of t h e cr im es in clu ded in Act 2-2018.
It is expr essly a ck n owledged t h a t t h e cer t ifica t ion s pr ovided by t h e Con t r a ct or ,

pu r su a n t t o t h is Ar t icle 7 of t h is Am en dm en t , a r e essen t ia l con dit ion s of t h is
Con t r a ct , a n d if t h ese cer t ifica t ion s a r e in cor r ect , Con t r a ct or sh a ll be in br ea ch of t h e
Con t r a ct . If t h e st a t u s of t h e Con t r a ct or wit h r ega r ds t o t h e ch a r ges pr eviou sly
m en t ion ed in t h is Cla u se H sh ou ld ch a n ge a t a n y t im e du r in g t h e t er m of t h e
Con t r a ct , t h e Con t r a ct or sh a ll n ot ify P RE P A pr om pt ly. Th e fa ilu r e t o com ply wit h t h is
r espon sibilit y con st it u t es a viola t ion of t h is sect ion a n d a br ea ch of t h e con t r a ct .
8. An t i-cor r u pt ion Code for a N ew P u er t o Rico: Con t r a ct or a gr ees t o com ply wit h t h e
pr ovision s of Act 2-2018, kn own a s t h e An t i-Cor r u pt ion Code for a New P u er t o Rico,
a s t h e sa m e m a y be a m en ded fr om t im e t o t im e.
9. Gover n m en t E t h ics Act : Th e Con t r a ct or h er eby cer t ifies t h a t it is in com plia n ce wit h
Act 1 of J a n u a r y 3, 2012, a s a m en ded, k n own a s t h e E t h ics Act of t h e Gover n m en t
Am en dm en t No. 4 t o E m er gen cy Ma st er Sen /ice Agr eem en t for P RE P A'S E lect r ica l
P a ge 5 of 7
of P u er t o Rico, wh ich , st ipu la t es t h a t , n o em ployee or execu t ive of t h e Con t r a ct or ,

n or a n y m em ber of h is/h e im m edia t e fa m ily (spou se, depen den t ch ildr en or ot h er
m em ber s of h is/h er h ou seh old or a n y in dividu a l wh ose fin a n cia l a ffa ir s a r e u n der t h e
con t r ol of t h e em ployee) sh a ll h a ve a n y dir ect or in dir ect pecu n ia r y in t er est in t h e
Ser vices t o be r en der ed u n der t h is Agr eem en t , except a s m a y be expr essly
a u t h or ized by t h e Gover n or of P u er t o Rico in con su lt a t ion wit h t h e Secr et a r y of
Tr ea su r y a n d t h e Secr et a r y of J u st ice of t h e Gover n m en t .
10. Cer t ifica t ion a s t o N o Con vict ion : Con t r a ct or h er eby cer t ifies t h a t it h a s n ot been
con vict ed in P u er t o Rico or U n it ed St a t es F eder a l cou r t for u n der Ar t icles 4.2, 4.3
or 5.7 of Act 1-2012, a s a m en ded, k n own a s t h e Or ga n ic Act of t h e Office of
Gover n m en t E t h ics of P u er t o Rico, a n y of t h e cr im es list ed in Ar t icles 250 t h r ou gh
266 of Act 146-2012, a s a m en ded, k n own a s t h e P u er t o Rico P en a l Code, a n y of t h e
cr im es t ypified in Act 2-2018, a s a m en ded, kn own a s t h e An t i-Cor r u pt ion Code for a
New P u er t o Rico or a n y ot h er felon y t h a t in volves m isu se of pu blic fu n ds or pr oper t y,
in clu din g bu t n ot lim it ed t o t h e cr im es m en t ion ed in Ar t icle 6.8 of Act 8-2017, a s
a m en ded, k n own a s t h e Act for t h e Adm in ist r a t ion a n d Tr a n sfor m a t ion of H u m a n
Resou r ces in t h e Gover n m en t of P u er t o Rico. P RE P A sh a ll h a ve t h e r igh t t o
t er m in a t e t h e a gr eem en t in t h e even t Con t r a ct or is con vict ed in P u er t o Rico or
U n it ed St a t es F eder a l cou r t for a n y of t h e cr im es specified in t h is pa r a gr a ph .
Con t r a ct or sh a ll pr om pt ly in for m P RE P A of a n y con vict ion or gu ilt y plea for a n y of
t h e a for em en t ion ed cr im es du r in g t h e t er m of t h is Con t r a ct .
11. Cer t ifica t ion of Gover n m en t Agr eem en t s: Th e Con t r a ct or h er eby cer t ifies t h a t , a t t h e
t im e of execu t ion of t h is Agr eem en t , it does n ot h a ve a n y ot h er m a t er ia l a gr eem en t
for ser vices wit h a n y a gen cy, pu blic cor por a t ion , m u n icipa lit y, or in st r u m en t a lit y of
t h e Gover n m en t of P u er t o Rico.
12. E m ployees n ot t o Ben efit : Th e P a r t ies h er eby decla r e t h a t , t o t h e best of t h eir

k n owledge, n o pu blic officer or em ployee of t h e Com m on wea lt h of P u er t o Rico, it s
a gen cies, in st r u m en t a lit ies, pu blic cor por a t ion s or m u n icipa lit ies or em ployee of t h e
Legisla t ive or J u dicia l br a n ch es of t h e Gover n m en t h a s a n y dir ect or in dir ect in t er est
in t h e pr esen t Agr eem en t . Th e Con t r a ct or cer t ifies t h a t n eit h er it n or a n y of it s
pa r t n er s, dir ect or s, execu t ives, officer s, a n d em ployees r eceives sa la r y or a n y k in d
of com pen sa t ion for t h e deliver y of r egu la r ser vices by a ppoin t m en t in a n y a gen cy,
in st r u m en t a lit y, pu blic cor por a t ion , or m u n icipa lit y of t h e Com m on wea lt h of
P u er t o Rico.
13. E qu a l ODpor t u n it y: Con t r a ct or cer t ifies t h a t it will n ot discr im in a t e on t h e ba sis of

r a ce, color , n a t ion a l or igin , sex, r eligion , a ge, disa bilit y, vet er a n st a t u s or in a n y wa y
ot h er wise pr oh ibit ed by la w a n d will in dem n ify P RE P A a ga in st a n y cla im s a r isin g
fr om su ch u n la wfu l discr im in a t ion by Con t r a ct or .
'^ • l!K,V ^
P a ge 6 of 7
14. Con t r a ct or wa r r a n t s t h a t t h e scope of wor k a s pr ovided pu r su a n t t o t h e Con t r a ct ,

in clu din g t h is a n d a ll Am en dm en t s is per for m ed con sist en t wit h a ll a pplica ble F E MA
la ws, r egu la t ion s, a n d eligibilit y gu idelin es a n d on ly in clu des wor k wh ich is eligible
for F E MA r eim bu r sem en t a ssist a n ce.
15. An y fin a n cia l r ecor ds, su ppor t in g docu m en t s, a n d st a t ist ica l r ecor ds in r ela t ion wit h
t h e Con t r a ct a n d t h is Am en dm en t F ou r m u st be r et a in ed a ccor din g t o P RE P A's
P olicy for Con ser va t ion a n d Ret en t ion of Docu m en t s (Revised 2012) t h a t
est a blish es a per iod of r et en t ion (15 yea r s, of wh ich t h e la st five will be a ft er t h e
a u dit of t h e Office of t h e In spect or Gen er a l) gr ea t er t h a n t h a t r equ ir ed by F E MA a n d
t h e 2 CF R §200. Th e 2 CF R §200.333 will a pply t o a n y r ecor d or docu m en t n ot
m en t ion ed or cover ed in P RE P A's P olicy.
16. P RE P A a n d t h e Con t r a ct or a gr ee t h a t Ar t icle 14(1) of t h e Or igin a l Con t r a ct is h er eby

a m en ded by st r ikin g "t h ir t y (30)" on t h e fou r t h (4t h ) lin e of su ch a r t icle a n d r epla cin g
it wit h "t en (10)".
17. Th e P a r t ies a gr ee t h a t t h is Con t r a ct a s a m en ded is n ot a pr ofession a l ser vice

con t r a ct a n d t h a t n o pr ofession a l ser vices will be r en der ed by Con t r a ct or h er eu n der .
18. E xcept a s set for t h h er ein , t h e Con t r a ct r em a in s in fu ll for ce a n d effect in a ccor da n ce

wit h it s t er m s.
IN WITN E SS WH E RE OF , t h e P a r t ies h er et o h a ve execu t ed t h is Am en dm en t on a n d

effect ive a s of t h is 2 Q da y of J a n u a r y, 201 8.
(MfMa i^
^ t o Gon za \ ez7~ \ _y (^ / Ar t y S t r a eh la
fe cu t ive D ir e ct or Ch ie f E xe cu t ive O ffice r
E m p loyer S ocia l S ecu r it y E m p loyer I D N u m ber
Am en dm en t N o. 4 t o E m er gen cy Ma st er Ser vice Agr eem en t for P RE P A'S E lect r ica l

P a ge 7 of 7
EXHIBIT B-1
Con t r a ct or 's Ra t e Sch edu le
Billa ble Da ily E xt en ded Da ily

Lin e It em QTY Ra t e billa ble r a t e 77 da ys
Blen ded r a t e, sk illed lin em en a n d
equ ipm en t ,
Tr a n sm ission /Dist r ibu t ion /Su bst a t ion 662 $ 3,760.00 $ 2,489,120.00^ $191,662,240.00
550 Ma n Ca m p, Alt in clu sive/lodgin g,

power , wa t er , m ea ls, la u n dr 1.8^ $ 142,600.00 $ 256.680.00 $19,764,360.00
Secu r it y Tea m 140 $ 1,840.00 $ 257,600.00 $19,835,200.00
Logist ics t ea m (Isla n d) 50 $ 2,300.00 $ 115,000.00 $8,855,000.00
Ma n a gem en t Tea m , Oper a t ion s &

Sa fet y 30 $ 2,300.00 $ 69.000.00 $5,313,000.00
Tot a l of Min im u m r equ ir em en t s 882.8 $ 3,187,400.00 $245,429,800.00
Mobiliza t ion /Dem obiliza t ion sh a ll be r eim bu r sed a t cost
All r eim bu r sa ble sh a ll be r eim bu r sed a t cost
Con t em por a n eou sly wit h t h e execu t ion of t h e Or igin a l Con t r a ct , P RE P A pa id t o

Con t r a ct or a lu m p su m pa ym en t in t h e a m ou n t of $15,000,000 (t h e "Deposit "), t o be
a pplied t o t h e fin a l in voices.
All a m ou n t s du e t o t h e Con t r a ct or u n der t h is Con t r a ct will be pa id by wir e t r a n sfer in

U.S, Dolla r s in im m edia t ely a va ila ble fu n ds t o t h e a ccou n t pr ovided t o P RE P A in wr it in g
u n less a n d u n t il P RE P A r eceives wr it t en n ot ice in a ccor da n ce wit h t h e t er m s of t h is
Con t r a ct of a ch a n ge in su ch a ccou n t in st r u ct ion s.
An y expen ses of Con t r a ct or t h a t a r e n ot specifica lly list ed in t h is E xh ibit B-1 sh a ll be

su bject t o a specific wor k or der t o be pr ovided t o P RE P A by Con t r a ct or for a ppr ova l
befor e su ch expen ses a r e in cu r r ed by Con t r a ct or .
In t h e even t t h a t a n y a m ou n t s t o be pa id t o Con t r a ct or u n der t h is Con t r a ct a r e su bject t o

a n y t a xes (in clu din g wit h h oldin g) im posed by a n y gover n m en t a l a u t h or it y of P u er t o Rico
in excess of 8.5% a n d Con t r a ct or h a s n ot obt a in ed a n exem pt ion fr om su ch t a xes, t h e
a m ou n t t o be pa id t o Con t r a ct or sh a ll be in cr ea sed by a n a m ou n t t h a t , a ft er t h e
pa ym en t of su ch t a xes, lea ves Con t r a ct or wit h t h e a m ou n t t h a t Con t r a ct or wou ld h a ve
r eceived if Con t r a ct or h a d been exem pt fr om a ll su ch t a xes.
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SJ2018CV01081
Case:17-04780-LTS Doc#:77105/03/2018 06:58:55
17:53:43 Desc: Main

COMISIÓN DE ENERGÍA DE PUERTO RICO CIVIL NÚM.: SJ2018CV01081
Demandante SOBRE:
v. SOLICITUD DE ORDEN EN
AUXILIO DE JURISDICCIÓN ANTE
AUTORIDAD DE ENERGÍA ELÉCTRICA DE INCUMPLIMIENTO CON ÓRDENES
PUERTO RICO
Demandada
SOLICITUD PARA QUE SE EXPIDAN EMPLAZAMIENTOS
Comparece la demandante, Comisión de Energía de Puerto Rico (“Comisión”),
representado por la abogada que suscribe, y muy respetuosamente expone, alega y
solicita:
1) En la tarde de hoy lunes 5 de marzo de 2018, la demandante presentó la
demanda de epígrafe en contra de la Autoridad de Energía Eléctrica de Puerto Rico
(AEE).
2) El emplazamiento dirigido a dicha demandada fue generado por el Sistema
Unificado de Manejo y Administración de Casos (SUMAC) en el formulario OAT 1578
Emplazamiento (SUMAC), copia del cual se acompaña a este escrito.
3) De conformidad con lo establecido en la Guía del Usuario – Preguntas Frecuentes
del SUMAC, pág. 8, http://www.ramajudicial.pr/sumac/Preguntas-Frecuentes-
SUMAC.pdf, se solicita a la Secretaría que expida el emplazamiento conforme a las Reglas
de Procedimiento Civil y envíe una copia electrónica de éste a la representación legal que
suscribe a través del SUMAC.
POR TODO LO CUAL, la parte demandante respetuosamente solicita a la
Secretaría de este Honorable Tribunal que, de conformidad con lo establecido en las
Reglas de Procedimiento Civil y en las Guías del Usuario del SUMAC, proceda a expedir
el emplazamiento dirigido a la Autoridad de Energía Eléctrica de Puerto Rico, y a enviar

SJ2018CV01081
Case:17-04780-LTS Doc#:77105/03/2018 06:58:55
17:53:43 Desc: Main
una copia electrónica de éste a la representación legal que suscribe a su dirección
electrónica de récord.

RUA Número 16721
San Juan, PR 00909
(787) 460-5715
www.mihglaw.com
2
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SJ2018CV01081
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COMISIÓN DE ENERGÍA DE PUERTO RICO CIVIL NÚM.: SJ2018CV01081
Demandante SALA: 904
v. SOBRE:
AUTORIDAD DE ENERGÍA ELÉCTRICA DE SOLICITUD DE ORDEN EN

PUERTO RICO AUXILIO DE JURISDICCIÓN ANTE
INCUMPLIMIENTO CON ÓRDENES
Demandada
MOCIÓN PARA INFORMAR DILIGENCIAMIENTO
Comparece la demandante, Comisión de Energía de Puerto Rico
(“Comisión”), representado por la abogada que suscribe, y muy respetuosamente
expone, alega y solicita:
1) El pasado lunes 5 de marzo de 2018, la demandante presentó la demanda de
epígrafe en contra de la Autoridad de Energía Eléctrica de Puerto Rico (AEE).
2) El 6 de marzo de 2018, la Secretaría expidió el emplazamiento a la AEE. Ese
mismo día, el referido emplazamiento fue personalmente diligenciado, junto
con copia íntegra de la Demanda, a la AEE. Véase Anejo I.
3) En la tarde del 6 de marzo, este Honorable Tribunal emitió una Orden en la
que concedió un término de cinco (5) días a la AEE para comparecer por escrito
y mostrar causa por la cual no se deba expedir el remedio solicitado en la
Demanda.
4) La referida Orden fue personalmente diligenciada a la AEE hoy 7 de marzo de
2018. Véase Anejo II.
POR TODO LO CUAL, la parte demandante respetuosamente solicita a este
Honorable Tribunal que tome conocimiento de lo antes informado.
CERTIFICO que en esta fecha se ha presentado este escrito a través del sistema
SUMAC, el cual, de conformidad con las reglas aplicables, notificará automáticamente a

SJ2018CV01081
Case:17-04780-LTS Doc#:77107/03/2018 02:52:44
17:53:43 Desc: Main
los abogados de las partes sobre la presentación de este escrito y hará disponible copia fiel
y exacta de éste por medios electrónicos.

RUA Número 16721
San Juan, PR 00909
(787) 460-5715
www.mihglaw.com
2
Exhibit B
Certified translations of Process and Pleadings in the Civil Action
COMMONWEALTH OF PUERTO RICO
GENERAL COURT OF JUSTICE
TRIAL COURT
SAN JUAN SUPERIOR COURT
PUERTO RICO ENERGY COMMISSION CIVIL NO.
RE:
Plaintiff REQUEST FOR ORDER IN ASSISTANCE
OF JURISDICTION IN VIEW OF NON-
v. COMPLIANCE WITH ORDERS
PUERTO RICO ELECTRIC POWER
AUTHORITY
Defendant
URGENT COMPLAINT REQUESTING ORDER
IN ASSISTANCE WITH JURISDICTION
TO THE HONORABLE COURT:
Comes now Plaintiff, the Puerto Rico Electric Energy Commission (“Commission”),
represented by the undersigned attorney, and very respectfully states, alleges and prays:
I. Presentation
1
The Puerto Rico Energy Commission requests from this Honorable Court, through this
Complaint, that it order in assisting the Commission’s jurisdiction, that the Puerto Rico Electric
Power Authority (AEE, Spanish acronym) comply in an urgent manner, with the following
orders under penalty of civil contempt, to its Executive Director and any other official
responsible for PREPA’s failure to comply:
a) The Order (Order) issued on November 17th of 2017 in the matter: In re: Temporary
Oversight Measures Related to the Procurement and Management of Restoration
Services by PREPA, Case No. CEPR-MI-2017-0008. Specifically, it is requested that
PREPA be ordered, under penalty of civil contempt, that its Executive Director and
any other responsible official:
(i) Include within all of the contracts which it grants, and being of the types
described within the first paragraph of Part II (a) of stated Order, clauses
and provisions required by the Commission in subsections (1) to (11) of
stated part of the Order:
(ii) Immediately deliver to the Commission all documents and information
required within Part II (b) of stated Order; and
(iii) Not grant any contracts of the types described in the first paragraph of Part
II(a) of stated Order, nor amendments to stated contracts, without first
having submitted the contract project to the Commission, and having
obtained endorsement by the Commission for its formalization. See,
Attachment I.
b. The Resolutions and Order issued on March 5th of 2018 in the matter: In re: Puerto
Rico Electric Power Authority’s Fiscal Plan, Case No. CEPR-IN-2018-0001.
2
Specifically, it is requested that PREPA be ordered, under penalty of civil contempt,
that its Executive Director plus any other responsible official, deliver to the
Commission true and exact copy of the proposal for Financial Plan which PREPA
presented to the Financial Oversight & Management Board (JSF, Spanish acronym)
this past February 12th of 2018, as well as the list of employees and consultants at
PREPA who have the knowledge as to explain the contents within stated proposal for
the Financial Plan, in detail, and the relationship between subject matters and
consultants or employees. See, Attachment II.
Plaintiff, Puerto Rico Energy Commission, is a public entity of Puerto Rico’s Executive
Branch having its own juridical identity, independent and highly specialized, established by Law
57-2014, as amended, known as the Puerto Rico Energy & Transformation Relief Act (“Law 57-
2014”), for purposes of regulating Puerto Rico’s electrical sector, and effect compliance with
Puerto Rico’s energy public policy. The Commission, in accordance with stated Law 57-2014, is
charged with regulating and supervising the electrical industry, adjudicate regarding
controversies within that sector, and execute compliance with Puerto Rico’s energy public
policy. In brief synthesis, the Commission’s main mission is to attain that Puerto Rico have a
trustworthy, efficient and transparent electrical system that provides electrical services at
reasonable prices. Of course, PREPA is one of the entities subject to the Commission’s
regulations and orders.
Among the encompassing powers delegated upon the Commission under Law 57-2014
are:
• “Establish, through regulations, rules of public policy with regards to electric
service companies, as well as any transaction, action or omission bearing upon
3
the electric network and electrical infrastructure in Puerto Rico, plus
implement stated norms of public policy”, Article 6.3(b);
• “[E]stablish and implement regulations and regulatory actions needed as to
guarantee the capacity, reliability, safety, efficiency and reasonable rates of
Puerto Rico’s electrical system and establish guidelines, standards, practices
and procedures to be followed so that processes which [PREPA] carries out
for purchase of energy from other electric services companies and/or
modernize its plants or energy generating facilities, thus providing that all
energy purchase and sales contracts must comply with the standards, terms
and conditions established by the Commission”, Article 6.3 (c);
• Control the quality and reliability of [PREPA’s] electrical services, and that
of any other energy firm certified in Puerto Rico”, Article 6.3(d);
• “Formulate and implement strategies as to attain the objectives of [the] Law
[57-2014], including but not limited to attaining the goal of permanently
reducing and stabilizing energy costs, and controlling volatility of electricity
prices in Puerto Rico. The Energy Commission, in the exercise of its faculties
and powers, will require that prices in every energy purchase and sales
contract be fair and reasonable, in tune with the public interest and
compliant with the parameters which this Commission establishes through
regulation”, Article 6.3(f);
• “Review and approve policies, strategic plans, and short, medium and long-
term plans relating to the integrated planning of energy resources within
Puerto Rico, and oversee compliance with same”, Article 6.3(h).
4
• Approve Integrated Resource Plans for PREPA, Article 6.23;
• “Approve and review, as applicable therein, modify rates or charges effected
and collected by energy services companies [including PREPA] within Puerto
Rico for any matter directly or indirectly related to the rendering of electric
(energy) service”, Article 6.3 (k) and (m).
• “[R]equire and compile all pertinent or necessary information for an
adequate execution of its duties and faculties”, Article 6.3(1);
• “Establish reliability standards within Puerto Rico’s electrical grid, following
parameters well-known by governmental and non-governmental entities
specialized in electrical services, and oversee compliance with same”, Article
6.3(v);
• “Compile and analyze all types of timely and reliable information regarding
generation, distribution, usage and consumption of energy”, Article 6.3 (w);
• “Carry out inspections, investigations and audits, if necessary, as to attain the
purposes of [the] Law [57-2014]”, Article 6.3(y);
• “Perform periodic research and investigations regarding the generation,
transmission and distribution, usage and consumption of energy […] as to
determine Puerto Rico’s energy needs during any time period”, Article 6.3(z);
• “Adopt rules, pronouncements and regulations that are necessary for
compliance with its duties, issue orders and establish fines as to comply with
those faculties granted it under law, and for implementation of [the] Law [57-
2014]”, Article 6.3 (mm); and
5
• Place those resources that are necessary as to “ensure that its rules,
regulations, orders and rulings are complied with”, Article 6.3 (nn).
(Emphasis provided). See, in general, 9 LPRA § 1054b.
After the JSF was established, in accordance with Public Law 114-187 known as the
Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA”), PREPA has
consistently refused to comply with the Commission’s orders and has hindered regulatory
procedures, under the legally incorrect premise that PROMESA and the powers delegated to the
JSF under stated Federal law, bears supremacy and pre-eminency over all of the Commission’s
faculties under Law 57-2014. To propose and conclude that PROMESA turned the JSF into
regulator for electrical services and the industry in Puerto Rico, and that with the approval of
PROMESA and the delegation of powers upon the JSF has had the practical effect of voiding
Law 57-2014, and divest the Commission of all its powers and make it irrelevant – as PREPA
seems to argue – is not only unreasonable, but more so runs counter to the spirit of PROMESA’s
own provisions, which define the faculties of the JSF and acknowledge such Commission’s
existence, its establishment and its powers under Law 57-2014. See, Sections 501 and
503(a)(1)(F)(vi) and (b)(1)(D) of PROMESA, U.S.C. §§ 2211-2213.
PROMESA, as a matter of law, demands that local legislations and regulations be
respected, see Section 303 of PROMESA, 48 U.S.C. § 2163, which of course includes Law 57-
2014, and the regulations and orders by the Commission under shelter of stated Law. And it so is
that the powers delegated by PROMESA to the JSF over PREPA are mostly of a financial type,
and not regarding substantive matters insofar as energy services. As we explain below, PREPA
cannot refuse to comply with the Commission’s orders under pretext of an alleged supremacy by
PROMESA, since PROMESA does not cover any field whatsoever within legislation, and the
6
indicated orders by the Commission are – in no way – incompatible with PROMESA nor with
exercising the faculties delegated to the JSF by PROMESA.
Moreover, regardless of the scope of such powers by the JSF over public entities of the
Government of Puerto Rico, declared by it as being covered territorial instrumentalities (as the
PREPA case is), then PREPA’s compliance with the Commission’s orders, execution for
which we are requesting the assistance of this Honorable Court, has no impact over
PREPA’s estate or physical status, nor in any way hinders the JSF from exercising its
powers over PREPA. This rules out, on its face, any proposal regarding pre-eminence and
non-suit which PREPA or its agents might make in attempting to attack these orders by the
Commission and, through it, intend to revert to the status of an unregulated monopoly,
with great prejudice towards all electric energy service clients in Puerto Rico, the public
interest and of all other electrical (power) service firms which operate or desire to establish
operations within Puerto Rico.
II. The Parties
1) Plaintiff, the Puerto Rico Energy Commission is a public entity for the Executive
Branch of the Government of Puerto Rico established under Law 57-2014 having its
own legal capacity, specialized knowledge and ample faculties to regulate Puerto
Rico’s electric power industry. The physical and postal address for the Commission
is: World Plaza Building, 268 Munoz Rivera Avenue, Suite 702, San Juan, PR 00918;
its phone number is (787) 523-6262; and its e-mail address is cepr@energia.pr.gov.
The Commission’s Acting President is Eng. Jose H. Roman Morales.
2) Defendant Puerto Rico Electric Power Authority is an electric power service firm
which in turn, is a public corporation for the Government of Puerto Rico, established
7
by Law No. 83 dated May 2nd of 1941, as amended, known as the Puerto Rico
Electric Power Authority Act. Its physical address is 1110 Ponce de Leon Avenue,
Neos Building, Eighth Floor, Office 801, San Juan, PR; its postal address is PO Box
363928, General Post Office, San Juan, PR 00936-3928; its phone number is (787)
521-3434; and its e-mail is j-morales@aeepr.com; n-vazquez@aeepr.com; c-
aquino@aeepr.com; and n-ayala@aeepr.com. Its Acting Executive Director is Eng.
Justo I. Gonzalez-Torres.
III. Jurisdiction of this Honorable Court and Active Competency of the Commission
3) The Puerto Rico Energy Commission appears before this Honorable Court in view of
the provisions of what is provided under Article 5.001 of Law 201-2003, as amended,
known as the Commonwealth of Puerto Rico Judiciary Act of 2003, 4 LPRA, §25a;
and in view of the provisions of subsections (ll) and (nn) of Article 6.3 of Law 57-
2014 which, in their pertinent parts establish:
The Energy Commission shall bear those faculties and duties which are established
as follows:
[…]
(ll) To sue and be sued in claims or causes of action in its own name at the Trial Court for
the Commonwealth of Puerto Rico, against any natural or juridical person which fails to
comply with or interferes with the requirements, purposes and objectives of this Law, or
in any other administrative forum within the Commonwealth of Puerto Rico. For such
purposes, the Commission’s active standing is acknowledged, in interposing all of the
necessary resources before the judicial forum, as to assure full compliance with the public
policy established in this Law;
[…]
(nn) To interpose resources, issue orders, establish and grant any legal remedies deemed
necessary as to effectuate the purposes of this Law, and enforce compliance with its rules,
regulations, orders and rulings.
8
IV. Importance of the Orders which PREPA is under Non-Compliance with
As we expounded in the Introduction, the Commission in the instant complaint, requests
assistance from this Honorable Court as to obtain full compliance by PREPA, under penalty of
civil contempt, from its Executive Director and any other responsible official, regarding the
following Orders by the Commission: (1) the Order (Order) issued on November 17th of 2017 in
the matter of In re: Temporary Oversight Measures Related to the Procurement and Management
of Restoration Services by PREPA, Case No. CEPR-2017-0008, see Attachment I; and (2) the
Resolution and Order (Resolution and Order) rendered on March 5th of 2018 in the matter of In
re: Puerto Rico Electric Power Authority’s Fiscal Plan, Case No. CEPR-IN-2018-0001, see
Attachment II. This, in accordance with the authority which Law 57-2014 granted upon the
Commission of “[i]nterposing all resources, issue orders and to formalize and grant any legal
remedies necessary as to effectuate the purposes of the [Law 57-2014], and enforce compliance
with its rules, regulations, orders and decisions”. Article 6.3 (nn) of Law 57-2014, 9 LPRA §
1054b.
Following, and for the benefit of this Honorable Court, we explain the context under
which the Commission issued each of these orders – with which PREPA has failed to comply –
and their importance. As this Honorable Court may corroborate, both orders are clearly framed
and covered within the scope of the authority and jurisdiction which Law 57-2014 granted upon
the Commission, not solely over PREPA, but moreover all of Puerto Rico’s electrical sector.
A) Order (Order) issued on November 17th of 2017 in the matter In re: Temporary
Oversight Measures Related to the Procurement and Management of Restoration
Services by PREPA, Case No. CEPR-MI-2017-0008, see Attachment I.
The Commission issued this Order for purposes of implementing certain measures to
advance and insure accountability, prudence and reasonableness in the efforts to restore electric
9
power services, after the passing of Hurricane Maria through the Puerto Rico island chain, and as
to avoid waste of resources, fraud and abusive practices by PREPA and potential or current
contractors. The Commission explained that the measures announced and required under this
Order were necessary and essential as result of the scandal regarding contracting of Whitefish
Energy Holdings, LLC (“Whitefish”), and of other contracts granted by PREPA, which
evidenced its lack of discipline, scrutiny and prudence therein. This, even more so when, being
PREPA a public corporation (lacking stockholders who suffer the proprietary consequences,
paying for the negligence and the resources wasted by the corporation), and the electric power
clients being those who pay for PREPA’s lack of prudence and waste of resources, through
payment of rate increases. That is, since PREPA is a public corporation lacking any
stockholders, it then becomes necessary to take preventive measures as to avoid that PREPA
continue incurring into negligent costs since, once PREPA does incur into such costs, there exists
no option other than to allow that PREPA collect the necessary revenues by charging rates as to
cover such negligent expenses. In the measure that no stockholders, partners or owner members
of PREPA exist, then the Commission cannot impose that any negligent expenses by PREPA
becomes losses for the stockholders, partners or members, instead of rate increases which affect
the consumers.
Under this backdrop, the Commission in Part II of the Order, ordered PREPA to include
eleven (11) special clauses or provisions in all of its (i) contracts for purchase of fuel, purchase
and sales of energy and service to the grid having an aggregate value of $10 million or more; (ii)
contracts for infrastructure work having a value of $1 million or more; (iii) professional services
contracts in the amount of $250,000 or more, which are granted by PREPA after November 17th
of 2017. One of the eleven (11) clauses which in accordance to the Order PREPA must
10
include in the above stated contracts is geared towards establishing that the contract will
not come into force until PREPA receives approval in writing from the Commission, or
until five (5) days have elapsed from the date in which PREPA has submitted the contract
to the Commission, if same has not taken any action whatsoever within stated period.
In Part II (b) of the Order, the Commission ordered PREPA to submit certain documents
and information, and to carry out certain actions with regards to contract projects mentioned in
Part II (a). Among these, PREPA was ordered to submit to the Commission (for prior evaluation
and approval), projects for such types of contracts that PREPA was proposing to grant therein. It
also required PREPA to submit amendments proposed for said contracts, prior to their issuance.
B) Resolution and Order (Resolution and Order) issued on Marh 5th of 2018 in the
matter In re: Puerto Rico Electric Power Authority’s Fiscal Plan, Case No. CEPR-
IN-2018-0001, see Attachment II.
The Commission, on March 31st of 2018, initiated an investigation regarding the content
and representations made in the proposal for the Fiscal Plan which PREPA filed before the JSF
this past 24th of January, 2018. Among the objectives of the investigation were (i) to evaluate the
initiatives identified therein by PREPA with regards to development of its operations,
performance, rate structure and resource planning; (ii) examine the potential impact which stated
initiatives might have upon the electrical industry in Puerto Rico and to electric power service
clients, and (iii) determine if the initiatives contemplated within the Fiscal Plan as to the
substantive matter regarding generation, transmission and distribution of electric power service
are consistent or not with the provisions of Law 57-2014 and with regulations and the orders by
the Commission. Through stated order dated January 31st of 2018, the Commission required
PREPA to answer numerous questions related to assorted substantive issues within the subject of
electric power services which had been touched upon within the proposed Fiscal Plan, such as:
11
energy generation, transmission and distribution; client service and invoicing; compliance with
environmental regulations; challenges in the aftermath of hurricanes Irma and Maria, and
restoration of electric power services; PREPA’s budgetary needs as to be able to operate and
provide electric power services, and monies requested and received from Federal entities or
programs; the rate structure, rate design and cost distribution among electric service clients; and
the Integrated Resource Plan, among others.
Stated questions were not responded by PREPA, and the information required in the
Order dated January 31st of 2018 was not received by the Commission. Notwithstanding, and as
it permeated within the communications media, the JSF this past February 5th, returned to
PREPA its proposal for the Fiscal Plan (of January 24th, 2018), for its review and modification,
to be resubmitted to the JSF on or before February 12th of 2018. See,
htpps://juntasupervision.pr.gov/wp-content/uploads/wpfd/43/5a78d5c643e93.pdf.
The Commission, and in view of stated developments, issued a new Order on the
morning of March 5th of 2018, under investigation CEPR-IN-2018-0001, through which it
required PREPA to deliver to said Commission –on or before that same day by 3:00 p.m. – true
and exact copy of the Fiscal Plan proposal which PREPA had presented before the JSF this past
February 12th of 2018, as well as the list of PREPA employees and consultants having
knowledge as to explain the contents of stated Fiscal Plan proposal in detail, and the relationship
between said issues, consultants, or employees. The Commission, in stated Order, explained that
in the Fiscal Plan proposal dated January 24th of 2018 same discussed, among some other
aspects, methods of transforming PREPA’s status quo (i.e., sale of PREPA’s generation units
and granting operation of electrical services transmission and distribution to a third party), and
assumes that the Fiscal Plan’s proposal dated February 12th of 2018 also touches upon said
12
issues, since the JSF did not require PREPA to exclude any subject matter whatsoever, upon
reviewing and modifying the proposal.
As we have explained, it is essential that the Commission, in its capacity as regulator for
Puerto Rico’s electric sector, have access to and examine PREPA’s Fiscal Plan Proposal,
because –in accordance with the proposal of February 24th of 2018 and JSF’s correspondence
dated the 5th of February, 2018- same deals with matters which undoubtedly are under the
jurisdiction of this Commission and that, above and beyond PREPA, affect the reliability and
quality of electric power services, the relationship foreseen between PREPA and other electric
power companies, sources which are planned to be used for energy generation, and operations by
other electric power firms. All the above impacts electric services costs and thus, rates which
consumers pay.
Addressing its mandates under Law 57-2014, the Commission must determine if the
proposed Fiscal Plan is or is not consistent with the provisions of Law 57-2014 and the orders
and regulations by said Commission. Furthermore, upon addressing the contents of the Fiscal
Plan’s proposal dated January 24th of 2017, we assumed that the content in the Fiscal Plan’s
proposal dated February 12th of 2018 bears huge value for purposes of the Commissions
regulatory role over all of Puerto Rico’s electric sector and not just for PREPA’s purposes alone.
V. Breach by PREPA and Request for Order under Penalty of Civil Contempt in
Assistance of the Commission’s Jurisdiction
A) PREPA has not complied at all with the Order dated November 17th of 2017 in the matter
of In re: Temporary Oversight Measures Related to the Procurement and Management of
Restoration Services by PREPA, Case No. CEPR-MI-2017-0008.
More than three (3) months have elapsed since the Commission issued the Order on the
17th of November of 2017, and PREPA has not submitted any contract whatsoever for evaluation
13
and approval by the Commission. Worse yet, as evidenced by the contracts which are included
as Attachments III, IV and V of this complaint, after the Order of November 17th of 2017 was
issued, PREPA has granted (i) contracts for the purchase of fuel, purchase and sales of energy,
for servicing of the grid, and for infrastructure work with an aggregate value of $10 million or
more, without including the clauses required in Part II(a) of the Order and without submitting
these for evaluation and approval by the Commission prior to granting same. Following we
shall describe the contracts which PREPA has granted, in clear violation of the Order by the
Commission dated November 17th of 2017.
1) Contract No. 2018-P00094 executed between PREPA and BDO Puerto Rico
P.S.C. Same deals with a consulting and accounting professional services contract in the amount
of $450,000.00 which was granted on December 7th of 2017. PREPA did not, prior to its
issuance, submit this contract for evaluation and approval by the Commission. Neither does the
contract contain clauses ordered by the Commission. See Attachment III and Part
II(a)(1)(2)(9) and (11) of the Order, which is enclosed as Attachment I.
2) Contract No. 2018-P00102 executed between PREPA and Horne Federal LLC.
This deals with a professional services contract in the amount of $1,500,000.00. This contract,
prior to its issuance, was not submitted to the Commission by PREPA for its evaluation and
approval. Neither does the contract contain clauses ordered by the Commission. See Attachment
IV and Part II(a)(1)(2)(9) and (11) of the Order which is enclosed as Attachment I.
3) Amendments (B), (C), and (D) of Contract No. 2018-P00028 executed between
PREPA, and Cobra Acquisitions LLC. Same deals with amendments to the contract issued by
PREPA for restoration of the electrical service and system, in the amount of $445,429,800.00 (in
accordance with Amendment (D). None of the amendments executed on December 8th of 2017
14
(Contract No. 2018—P00028D) – to wit, all subsequent to the Order of November 17th of 2017 –
were submitted to the Commission for their evaluations and approval. Likewise, none of these
amendments included the clauses required by the Commission in Part II(a) of the Order.
Attachment V.
In accordance with the information published in the Comptroller’s Office Contracts
Registry, the contracts attached herein as Attachments III, IV and V of this Complaint seem to
be only a sampling of the contracts issued by PREPA, in breach of the Commission’s Order.
B) PREPA has not complied with the Resolution and Order issued on March 5th of 2018 in
the matter In re: Puerto Rico Electric Power Authority’s Fiscal Plan, Case No. CEPR-IN-
2018-0001.
The term granted to PREPA by the Commission for it to deliver true and correct copy of
the Fiscal Plan proposal which PREPA presented before the JSF this past 12th of February of
2018, as well as the list of PREPA’s employees and consultants having knowledge as to explain,
in detail, the contents of stated proposed Fiscal Plan, and the relationship between issues and
employees or consultants, has elapsed without PREPA having complied with what was ordered.
In conversations held between PREPA’s and the Commission’s legal consultants, PREPA stated
concerns regarding the alleged confidential nature of certain materials contained in the Fiscal
Plan’s proposal dated February 12th of 2018. As we explain below in Part IV of this Complaint,
there exists no reason that such should be a concern neither for PREPA nor for this Honorable
Court, since due to express provisions within Law 57-2014 (i) the Commission is obligated to
protect confidential information, (ii) PREPA cannot oppose grounds regarding confidentiality or
privileges (exception the attorney-client privilege), as to refuse to provide information to the
Commission, and (iii) it is the Commission which has the exclusive primary jurisdiction to
15
address confidentiality or privilege issues which PREPA raises regarding documents, materials
or information which it needs to deliver to said Commission.
Notwithstanding the above, and with the sole purpose of streamlining the delivery of at
least the substantive portion (regarding related subjects, as for example, infrastructure and
reliability of electrical services) of the Fiscal Plan proposal, the Commission then proposed to
PREPA, on the morning of March 5th of 2018, that –insofar as a partial compliance- it deliver
stated substantive part of the proposal and to redact whatever PREPA deemed as confidential.
This offer by the Commission did not imply a waiver of its faculty to demand the document in
full, rather, a temporary arrangement which would allow that the Commission could begin to
immediately examine the more important content (for the Commission) of the Fiscal Plan
proposal filed before the JSE on February 12th of 2018. In spite of this, PREPA did not submit
any version whatsoever of the indicated Fiscal Plan proposal. Neither did it request additional
time as to comply, nor did it in any way commit to comply with what was tendered.
As we have pointed out in this Complaint, it is imperative that the Commission have
access to and examine the Fiscal Plan proposal as soon as possible, as to thereby be able to
submit its decisions to the JSF regarding all matters within its expertise, before the JSF decides
whether or not it certifies stated Fiscal Plan.
VI. PREPA Cannot Refuse to Provide Information to the Commission on Grounds of

Evidentiary Privileges or Confidentiality Rules
Article 6.15 of Law 57-2014, 9 LPRA § 1054n, establishes:
If any person who has an obligation to submit information to the Energy

Commission deems that the information to be submitted enjoys certain
confidentiality privilege, he may request that stated Commission grant it
such status, subject to the following:
(a) If the Energy Commission, after the appropriate evaluation,

deems that the information needs to be protected, it shall seek the way
16
to grant such protection in the manner which impacts the public less,
bears transparency, and the right of the parties involved within the
administrative procedures in which the alleged confidential document
has been submitted.
(b) The Energy Commission may, to said effects, provide access To the
document or those portions of the document which are Privileged, solely
to attorneys and external consultants involved In the administrative
proceedings after executing a confidentiality agreement.
(c) The Energy Commission will maintain documents filed before it fully
outside of public scrutiny, only in exceptional cases. In said cases, the
information shall be duly reserved and turned over exclusively to Energy
Commission staff who have a strict need to know about it, under non-
disclosure rules. Notwithstanding, the Energy Commission shall order that
a non-confidential version be provided for public review.
(d) Any other claim to confidential and privileged information by a

person under the jurisdiction of the Energy Commission needs to be
resolved in an expedited manner by the Commission by a resolution to
stated effects, before any alleged confidential information from its source,
be disclosed. [(Bold provided.)]
Addressing the legislative mandate established within the quoted Article, PREPA is
barred from refusing to provide the Commission information and documents required in the
orders which, under penalty of civil contempt, compliance with is requested, in assistance for the
Commission’s jurisdiction. If PREPA were to deem that any information or certain document
were fully or partially confidential or privileged, it must provide stated information or document
to the Commission and within that (i) identify what part of the information or document PREPA
deems to be confidential or privileged; (ii) specify in writing what legal grounds and sources in
law support a privileged approach to such confidential or privileged information or document;
and (iii) explicitly request that the Commission grant a confidential or privileged status to the
questioned information or document. It is the Commission who has, based on Article 6.5 of Law
57-2014, the exclusive primary jurisdiction to address claims regarding confidentiality or
privileges which are made regarding information or documents required by the Commission.
17
Once such confidential or privileged status is adequately invoked, then the Commission
will address the matter in an expedite manner through a ruling to stated effects. If the
Commission were to deem that no legal grounds exist for the confidentiality rules or the
privilege thus invoked, the PREPA shall have, prior to publication or disclosure of information in
accordance with the ruling, an opportunity to query or rebut the Commission’s ruling at the
judicial forum. All the above would be evidenced within the ruling which on such date the
Commission were to issue, in compliance with the rules of administrative law.
VII. Orders by the Commission Compliance of which are Subject of this

Complaint, are not in Conflict with PROMESA, wherefore same are not
Preempted by PROMESA
The supremacy clause contained in Article VI of the United States Constitution provides
that “the laws of the United States […] shall be the supreme law of the land; and the judges in
every state shall be bound thereby, anything in the Constitution or laws of any State to the
contrary notwithstanding.” Congress, under governance of stated clause, may preempt (i.e.
invalidate) a State law through Federal legislation, either implicitly or through explicit provisions
to such ends within a Federal law. Oneok, Inc. v. Learjet, Inc., 135 S. Ct. 1591, 1595 (2015),
quoting Sprietsma v. Mercury Marine, 537 U.S. 51, 64 (2002). Moreover, preemption of a
Federal law over State legislation may be, for example, a field preemption, or solely in whatever
measure whereby there exists a conflict between the provisions of the State law and the Federal
law (i.e. conflict preemption). See, id.
Whenever a Federal law controls the field (i.e. field preemption), there exists no space
whatsoever for State legislation within the subject or field in question, independent of whether
such State legislation is or is not consistent with Federal legislation. Id., quoting Arizona v.
United States, 132 S. Ct. 2492, 2502 (2012). To the contrary, conflict preemption exists
18
whenever Congress has not occupied the field regarding a specific subject or field, but (i)
compliance with State and Federal law is impossible, or (ii) the State law become an obstacle for
executing and implementing the Federal law. See, id., quoting California v. ARC America Corp.,
490 U.S. 93,100, 101 (1989).
In the case of PROMESA, same disposes within its Section 4 that the provisions of stated
Federal law shall prevail over Puerto Rico laws and regulations which are inconsistent with
PROMESA. 48 USC § 2103. (“The provisions of this Act shall prevail over any general or
specific provision of territory law, State law or regulation that is inconsistent with this Act.”)
Therefore, in tune with the jurisprudence quoted by the United States Supreme Court, there
exists no doubt that PROMESA does not occupy any field whatsoever, rather, that it shall only
invalidate laws and regulations in Puerto Rico insofar as such laws and regulations are
incompatible with PROMESA or hinder the execution and implementation of PROMESA.
In closing, the orders by the Commission, execution of which assistance from this
Honorable Court is being sought, are not in any way incompatible with any of PROMESA’s
provisions, nor hinders the enforcement of such Law.1 Quite the contrary, PREPA’s compliance
1
Section 201(b)(1)(A)(i) of PROMESA, 48 U.S.C. § 2141 requires that PREPA’s Fiscal Plan include income and expense estimates in
accordance with agreed accounting practices, and that same be in conformity with applicable legislation. Law 57-2014 is the applicable
legislation since, and as an example, same establishes a mandate upon the Commission so that it review and approve PREPA’s rates, and insure
that same are “fair and reasonable”, and that it “guarantee payment of stated public corporation’s debt to the bondholders”. Considering such
mandates, regarding the investments that PREPA needs to make as to comply with the Integrated Resources Plan approved by the Commission as
to thus improve the quality and reliability of electric power services within the rate review process and in accordance with its expertise within
such subject area, the Commission establishes the revenue requirement (i.e. revenue needs) for PREPA. Stated in another manner, in exercising
its duties under Law 57-2014 as the regulator for Puerto Rico’s electric power industry, it is the Commission which determines what capital
improvements are needed so that consumers in Puerto Rico are able to receive reliable electric power services at reasonable rates.
Upon considering such a scenario, as well as those provisions in PROMESA which circumscribe JSF’s authority in mostly fiscal issues, the
provisions of law 57-2014 which delegate comprehensive faculties to the Commission as to regulate and oversee Puerto Rico’s electric power
industry, and the provisions of PROMESA which acknowledge the existence and expertise of the Commission under law 57-2014, there exists no
doubt whatsoever that the orders, and execution of which the Commission requests the assistance of this Honorable Court, represents no conflict
whatsoever with PROMESA, nor with the faculties delegated upon the JSF. More so, when as we have alerted, none of the orders subject of
this Complaint has any impact at all over PREPA’s finances or estate, nor in any way hinders that JSF exercise its faculties over PREPA.
Regarding JSF’s (FMOB) primary fiscal authority over PREPA, see Sections 101(a): (“The purpose of the oversight board is to provide a method
for a covered territory to achieve fiscal responsibility and access to the capital markets.”); 104(i)(1)(B); 201(b)(1) (“A fiscal plan developed under
this section shall, with respect to the territorial government or covered territorial instrumentality, provide a method to achieve fiscal responsibility
and access to capital markets”); 201(b)(A)(1) through (J); 203(d)(2)(A) (“[W]ith respect to covered territorial instrumentalities at the sole
discretion of the Oversight Board – (A) make reductions in non-debt expenditures to ensure that the actual quarterly revenues and expenses for
the covered territorial instrumentality are in compliance with the applicable certified Budget or, in the case of the fiscal year in which the
Oversight Board is established, the budget adopted by the Governor and the Legislature or the covered territorial instrumentality, as applicable”);
19
with these orders shall facilitate that the Commission, through its expertise regarding subjects the
electric power industry and its services, collaborates and assists with the Fiscal Oversight Board
in tasks relating to PREPA’s Fiscal Plan, and its restructuring. Likewise, measures of prudence
and sane management advanced through the Order of November 17th of 2017 regarding
PREPA’s contracts, are totally aligned with PROMESA’s objectives and mission.
WHEREFORE, the Puerto Rico Energy Commission respectfully requests that this
Honorable Court GRANT this Complaint and, consequently, order PREPA to immediately
comply with the two (2) orders by the Commission provided as Attachments I and II of this
Complaint, under penalty of civil contempt upon its Executive Director and any other
responsible official therein, and grant any other remedy proper under law and which this
Honorable Court deems adequate to so grant therein.
RESPECTFULLY SUBMITTED
In San Juan, Puerto Rico, this 5th of March, 2018.
Sgd./MARIANA I. HERNANDEZ-GUTIERREZ
RUA Number 16721
Hernandez Gutierrez Law, PSC
1519 Ponce de Leon Avenue
First Federal Building, Suites 713-715
San Juan, PR 00909
(787) 460-5715
www.mihglaw.com
203(e); and 209 (“An Oversight Board shall terminate upon certification by the Oversight Board that – (1) the applicable territorial government
has adequate access to short-term and long-term credit markets at reasonable interest rates to meet the borrowing needs of the territorial
government; and (2) for at least 4 consecutive fiscal years –(A) the territorial government has developed its Budgets in accordance with modified
accrual accounting standards; and (B) the expenditures made by the territorial government during each fiscal year did not exceed the revenues of
the territorial government during that year, as determined in accordance with modified accrual accounting standards.”)
20
CERTIFICATION
CERTIFIED: That the attached document(s)
is (are) true and correct translation(s) of the
original document(s) from Spanish into English .
Moreover, that I am a Federally Certified Court

Interpreter & Translator for the Administrative
Office of the U. S. Courts within the active list of
Certified Contractor Interpreters and Translators
at the U.S. District Court, District of Puerto Rico.
Carlos T. Ravelo
AOUSC Certification # 95-063
DPR MODIFIED PROMESA B1040 (FORM 1040) (05/17)
PROMESA COVER SHEET CASE NUMBER

(Court Use Only)
(Instructions on Reverse)
PLAINTIFFS (DEBTOR, if Title III Petition; DEFENDANTS

ISSUER, if Title VI Application) Puerto Rico Energy Commission
Puerto Rico Electric Power Authority
ATTORNEYS (Firm Name, Address, and Telephone ATTORNEYS (If Known)

No.) See Exhibit A, Sec. II
See Exhibit A, Sec. I

PARTY (Check One Box Only) PARTY (Check One Box Only)
✔ Debtor
  Debtor
 Creditor  Creditor
 Trustee  Trustee
 U.S. Trustee/Bankruptcy Admin  U.S. Trustee/Bankruptcy Admin
 Other ✔ Other

CAUSE OF ACTION (WRITE A BRIEF STATEMENT OF CAUSE OF ACTION, INCLUDING ALL U.S. STATUTES INVOLVED)
Removal from Puerto Rico Court.
NATURE OF SUIT

✔
PROMESA Title III Petition  PROMESA Title VI Application for Approval of Modifications
 Other Federal Question  ✔ Adversary Proceeding  Demand $ __________
If Adversary Proceeding is checked, number up to five (5) boxes starting with lead cause of action as 1, first
alternative cause as 2, second alternative cause as 3, etc., below:
FRBP 7001(1) – Recovery of Money/Property FRBP 7001(7) – Injunctive Relief
 11-Recovery of money/property - §542 turnover of  71-Injunctive relief - imposition of stay
property  72-Injunctive relief - other
 12-Recovery of money/property - §547 preference
 13-Recovery of money/property - §548 fraudulent FRBP 7001(8) Subordination of Claim or Interest
transfer  81-Subordination of claim or interest
 14-Recovery of money/property – other
FRBP 7001(9) Declaratory Judgment
FRBP 7001(2) - Validity, Priority or Extent of Lien  91-Declaratory judgment
 21-Validity, priority or extent of lien or other interest
in property FRBP 7001(10) Determination of Removed Action

✔
01-Determination of removed claim or cause
FRBP 7001(5) – Revocation of Confirmation
 51-Revocation of confirmation Other
 02-Other (e.g. other actions that would have been
brought in state court if unrelated to bankruptcy case)
TITLE III CASE IN WHICH THIS ADVERSARY PROCEEDING ARISES
NAME OF DEBTOR CASE NO.
Puerto Rico Electric Power Authority 17-4780 (LTS)
DISTRICT IN WHICH CASE IS PENDING DIVISION OFFICE NAME OF JUDGE
District of Puerto Rico 3 Laura Taylor Swain
DPR MODIFIED PROMESA B1040 (FORM 1040) (05/17)
RELATED ADVERSARY PROCEEDING (IF ANY)

PLAINTIFF DEFENDANT ADVERSARY
PROCEEDING NO.
DISTRICT IN WHICH CASE IS PENDING DIVISION OFFICE NAME OF JUDGE
SIGNATURE OF ATTORNEY (OR PLAINTIFF) /s Katiuska Bolaños-Lugo

DATE PRINT NAME OF ATTORNEY (OR PLAINTIFF)
March 13, 2018 Katiuska Bolaños-Lugo
THIS FORM IS TO BE USED EXCLUSIVELY FOR FILINGS RELATING TO THE PUERTO RICO OVERSIGHT MANAGEMENT AND ECONOMIC STABILITY
ACT (PROMESA). FOR ADMINISTRATION PURPOSES ONLY, THE PUBLIC DOCKETS FOR PROMESA PROCEEDINGS UNDER TITLE III AND
ADVERSARY PROCEEDINGS WILL BE MAINTAINED ON THE CASE MANAGEMENT/ELECTRONIC CASE FILING (CM/ECF) SYSTEM OF THE UNITED
STATES BANKRUPTCY COURT FOR THE DISTRICT OF PUERTO RICO. THESE CASES ARE UNDER THE JURISDICTION OF THE UNITED STATES
DISTRICT COURT FOR THE DISTRICT OF PUERTO RICO.
Exhibit A
Supplement to Cover Sheet
I. Attorneys for Plaintiff
The Puerto Rico Fiscal Agency and Puerto Rico Electric Power Authority
Financial Advisory Authority
Nancy A. Mitchell (admitted pro hac vice) Arturo Díaz Angueria

Nathan A. Haynes (admitted pro hac vice) USDC No. 117907
200 Park Avenue Katiuska Bolaños Lugo
New York, NY 10166 USDC No. 231812
Phone: 212.801.9200
Fax: 212.801.6400
Email: mitchelln@gtlaw.com CANCIO, NADAL, RIVERA & DÍAZ,
haynes@gtlaw.com P.S.C.
PO Box 364966
David D. Cleary (admitted pro hac vice) San Juan, PR 00936-4966
Kevin D. Finger (admitted pro hac vice) Tel. (787) 767-9625
Greenberg Traurig, LLP Fax (787) 764-4430
77 West Wacker Drive adiaz@cnrd.com
Suite 3100 kbolanos@cnrd.com
Chicago, IL 60601
Phone: 312.456.8400
Fax: 312.456.8435
Email: clearyd@gtlaw.com
fingerk@gtlaw.com
Joseph P. Davis III (admitted pro hac vice)

One International Place, Suite 2000
Boston, MA 02110
Phone: 617.310.6000
Fax: 617.310.6001
Email: davisjo@gtlaw.com
II. Attorneys for Defendant
Puerto Rico Energy Commission
Mariana Hernández-Gutierrez
San Juan, PR 00909
Tel. (787) 460-5715

PREPA PREC Lawsuit Fiscal Plan (03.13.18)

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Case:17-04780-LTS Doc#:771 Filed:03/13/18 Entered:03/13/18 17:53:43 Desc: Main

Document Page 1 of 168

UNITED STATES DISTRICT COURT

as representative of Case No. 17-04780 (LTS)

PUERTO RICO ELECTRIC POWER AUTHORITY,

PROMESA section 310, 48 U.S.C. § 2170, the following civil action:

(a) Comisión de Energía de Puerto Rico v. Autoridad de Energía Eléctrica de Puerto

In support of this Removal, AAFAF respectfully states as follows:

I. FACTS SUPPORTING REMOVAL

A. Procedural Posture of the Civil Action

representative of the Governor on behalf of the Commonwealth in the creation, execution,

B. The Oversight Board and PREPA’s Title III Case

Board’s seven voting members.

4. On September 30, 2016, the Oversight Board designated PREPA as a “covered

territorial instrumentality” under PROMESA section 101(d).

case under title III of PROMESA (the “Title III Case”).

C. Prior Actions By and Involving PREC

Conservación y Competitividad Económica de P.R. v. Comisión de Energía de P.R. & Autoridad

Instituto de Conservacion y Competitividad Economica de P.R. v. Comision de Energia Eléctrica

9. In addition, PREC on the evening of March 4, 2018, commenced a flurry of activity.

Oversight Board that afternoon by 3:00 p.m. AST.

Action by Wednesday, March 14, 2018.

D. The Civil Action is Subject to Removal to this Court

pursue “legal remedies that may be necessary to enforce” PREC orders.

appointment of a receiver to oversee PREPA’s procurement process. On November 8, 2017,

Procurement Compliance (“OCPC”) to oversee PREPA’s procurement activity and process.

conflicts with the Governor’s determination to appoint a receiver to oversee PREPA’s

procurement, in clear violation of PROMESA section 303, 48 U.S.C. §2163.[1]

to those same powers granted by PROMESA.

designated AAFAF as the exclusive governmental entity responsible for “collaboration,

then-existing governmental entities—including “commissions” such as PREC, § 3(d). The

of the United States Constitution.

in PROMESA section 4, 48 U.S.C. § 2104.

Board and AAFAF over PREPA’s fiscal and budget matters.

II. BASIS FOR REMOVAL

within this District. See 48 U.S.C. § 2166(d)(1).

to be removed. See Fed. R. Bankr. P. 9027(a)(3)(A).

Notice is intended or shall be construed as a waiver of the automatic stay.

the Local Court.

counsel for all parties to the Civil Action.

III. STATEMENT REGARDING CONSENT TO ENTRY OF FINAL ORDERS

orders or judgment by the District Court in the Civil Action.

IV. RESERVATION OF RIGHTS

section 305. 48 U.S.C. §2165.

Dated: March 13, 2018 Respectfully submitted,

David D. Cleary (admitted pro hac vice)

Joseph P. Davis III (admitted pro hac vice)

PUERTO RICO ELECTRIC POWER

s/ Arturo Díaz Angueria

s/ Katiuska Bolaños Lugo

CANCIO, NADAL, RIVERA & DÍAZ, P.S.C.

Copies of all Process and Pleadings in the Civil Action

ESTADO LIBRE ASOCIADO DE PUERTO RICO

COMISIÓN DE ENERGÍA DE PUERTO RICO CIVIL NÚM.:

DEMANDA URGENTE EN SOLICITUD DE ORDEN

Comparece la demandante, Comisión de Energía de Puerto Rico (“Comisión”),

representado por la abogada que suscribe, y muy respetuosamente expone, alega y

Mediante esta Demanda, la Comisión de Energía de Puerto Rico solicita a este

Honorable Tribunal que ordene, en auxilio de la jurisdicción de la Comisión, a la

otro funcionario responsable por el incumplimiento de la AEE:

a) La Orden (Order) emitida el 17 de noviembre de 2017 en el asunto In re:

Temporary Oversight Measures Related to the Procurement and Management

of Restoration Services by PREPA, Case No. CEPR-MI-2017-0008. En

específico, se solicita que se ordene a la AEE, so pena de desacato civil a su