The Puerto Rico Electric Power Authority (AEE) terminated a nearly $5.9 billion contract with Power Expectations, ending a deal that would have supplied temporary generation capacity to the island.

AEE stated that the termination occurred because Power Expectations failed to present the $1.18 billion performance bond required to keep the agreement active. The contract had been set to expire on August 7, a date that drew public attention from Senate President Thomas Rivera Schatz, who questioned the timing of the renewal process amidst the unfolding scandal.

The termination means Puerto Rico will not receive the 400 megawatts of additional temporary generation capacity the contract was intended to provide. Without this power, the island continues to face deficits in its temporary generation needs.