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Strong earthquake in southern Peru leaves one dead, scores injured

A man observes a damage building after a strong magnitude 7.1 earthquake struck the coast of southern Peru, in Acari, Arequipa , Peru, January 14, 2018.

By Marco Aquino

LIMA (Reuters) – A strong magnitude-7.1 earthquake struck the coast of southern Peru on Sunday morning, killing one person, injuring scores and causing homes and roads to collapse.

The quake hit offshore at 4:18 a.m. local time (0918 GMT) at a depth of around 36 km (22.4 miles), the U.S. Geological Survey said. The epicenter was in the Pacific Ocean 40 km from the town of Acari.

Arequipa Governor Yamila Osorio said on Twitter that a 55-year-old man died in the town of Yauca after being crushed by rocks. Jorge Chavez, chief of Peru’s Civil Defense Institute, told local radio station RPP that 65 people were injured.

Several municipalities lost electricity, and many roads and adobe houses collapsed, Osorio said. Many residents of Lomas, a coastal town, were evacuated after feeling an aftershock.

President Pedro Pablo Kuczynski traveled to the towns of Chala and Acari, two of the areas most affected by the quake, to assess the damages and coordinate the response. He said some 100 houses had collapsed.

A man and a child stand at debris of a building after a strong magnitude 7.1 earthquake struck the coast of southern Peru, in Acari, Arequipa , Peru, January 14, 2018. REUTERS/Diego Ramos

“We are going to send everything that is needed, such as tents for people whose homes were destroyed,” Kuczynski told reporters in Chala.

Earthquakes are common in Peru, but many homes are built with precarious materials that cannot withstand the tremors.

In 2007 an earthquake killed hundreds in the region of Ica.

Prime Minister Mercedes Araoz said at a news conference in Lima that the government would declare a state of emergency in the affected zones to allow for faster reconstruction of roads and homes. Devastating floods last year resulted in $8 billion in rebuilding costs.

Peruvian maritime authorities said the quake did not produce a tsunami on the coast. In the morning, officials said a second person had died and that 17 people were missing in a mine, but later withdrew the reports.

Peru is the world’s No. 2 copper producer, although many mines in the south are located far inland from the quake’s epicenter. A Southern Copper Corp representative said there were no reports of damage at its Cuajone and Toquepala mines.

Jesus Revilla, a union leader at the Cerro Verde copper mine in Arequipa, said there were no reports that operations had been affected.

The quake was also felt in northern Chile, Peru’s southern neighbor, but authorities said there was no tsunami risk.

(Reporting by Marco Aquino and Luc Cohen; Additional reporting by Antonio de la Jara in Santiago; Editing by Louise Heavens, Lisa Von Ahn and Jeffrey Benkoe)

Storm cuts power to 225,000 households in France, one dead

Waves break on the Brittany coast as storm Eleanor approaches Esquibien, France, January 2, 2018.

PARIS (Reuters) – One man died on a ski slope and at least 15 were injured across northern and eastern France on Wednesday in a storm that has cut power to some 225,000 households, local authorities said.

Emergency services said the skier was killed when a tree fell on him.

Storm Eleanor, with winds of more than 120 kph (75 mph), also led to the suspension of ferry lines between the island of Corsica and mainland France.

Households in the eastern regions of Alsace, Franche-Comte and Lorraine were among the worst hit by the storm, Enedis, a unit of state-controlled EDF, said. The area around Paris, northeastern Picardie and Champagne-Ardenne were also affected.

Winter storm Carmen battered western France on Jan. 1, with some 40,000 households in the Brittany region temporarily losing power on Monday.

(Reporting by Sarah White, Simon Carraud, Ingrid Melander; Editing by Alison Williams)

More flights canceled after Atlanta airport’s day without power

(Reuters) – Hundreds of flights were canceled into and out of Atlanta’s Hartsfield-Jackson International Airport on Monday, a day after a paralyzing 11-hour power outage at the world’s busiest airport left passengers marooned on airplanes idling on the tarmac.

More than 400 planned flights to or from Atlanta were scrapped and another 86 were delayed, according to the FlightAware tracking service.

The airport lost power on Sunday morning after what Georgia Power <GPJA.N> believes was an equipment failure and subsequent fire in an underground electrical facility. Power for essential activities was restored by 11.45 p.m., the utility company said.

By then, miserable would-be passengers had posted pictures and videos that were widely shared online of their confinement inside planes stuck outside darkened terminals as boredom and hunger mounted. They were all disembarked safely by about 10 p.m., nine hours after the outage began. More than 1,100 flights were canceled on Sunday.

Officials at the airport, which is run by the city of Atlanta, sought to mollify customers on Sunday with thousands of free meals, water and parking spots as power began to return.

While some stranded travelers found rooms in hotels, city authorities also provided shelter at the Georgia International Convention Center.

Delta said customers whose travel was disrupted could make a one-time change to travel plans within certain guidelines. Other airlines also offered waivers for flight changes. Delta said its flight schedule in Atlanta was expected to return to normal by Monday afternoon.

More than 100 million trips and connections began or ended at the airport in 2015, according to Airports Council International.

(Reporting by Jonathan Allen in New York; Editing by Nick Zieminski)

Lights back on in Venezuela after five-hour blackout

By Alexandra Ulmer and Fabian Cambero

CARACAS (Reuters) – A power outage hit parts of the Venezuelan capital Caracas as well as the nearby states of Miranda and Vargas for around five hours on Monday, in what critics said was another sign of the oil-rich nation’s economic meltdown.

Authorities blamed the outage, which began around noon (1600 GMT), on the collapse of an important cable linking a power plant and a transmission tower.

The fault affected some phone lines, parts of the Caracas metro, and the main Maiquetia airport just outside the capital.

Many workers had no choice but to walk home, shops and restaurants closed, and Venezuelans grumbled that another day was disrupted by tumult.

The country is already grappling with the world’s fastest inflation, rising malnutrition, and disease as the state-led economic system grinds to a halt.

“Venezuela has fallen apart,” said David Garcia, 38, as he queued for a hotdog at a stand in the wealthier Chacao neighborhood. He had spent two hours looking for an open restaurant because he could not cook at home.

Venezuela has in recent years suffered frequent blackouts that critics attribute to insufficient investment following the 2007 nationalization of the electricity sector.

“This is a symptom of a country collapsing due to the negligence of those in power,” tweeted opposition lawmaker Tomás Guanipa.

The government has in some cases attributed the blackouts to sabotage or accused critics of exaggerating problems.

Energy minister Luis Motta on Monday tweeted articles on a recent power outage at Atlanta airport in the U.S. state of Georgia, adding: “It happens there too.”

He did not provide details on the magnitude and effects of Monday’s blackout.

Shopkeepers complained that the outage had hurt business.

“It’s a lost day,” said Armindo Gomes, 24, whose Portuguese family runs two bakeries, as he pointed at dough, cheese and meat that should have been refrigerated.

(Reporting by Fabian Cambero and Alexandra Ulmer, Editing by Rosalba O’Brien)

More flights canceled after Atlanta airport’s day without power

Passengers walk through the newly opened Maynard H. Jackson Jr. International Terminal at Hartsfield-Jackson Atlanta International Airport in Atlanta, Georgia May 16, 2012.

More than 400 planned flights to or from Atlanta were scrapped and another 86 were delayed, according to the FlightAware tracking service.

The airport lost power on Sunday morning after what Georgia Power believes was an equipment failure and subsequent fire in an underground electrical facility. Power for essential activities was restored by 11.45 p.m., the utility company said.

Officials at the airport, which is run by the city of Atlanta, sought to mollify customers on Sunday with thousands of free meals, water and parking spots as power began to return.

While some stranded travelers found rooms in hotels, city authorities also provided shelter at the Georgia International Convention Center.

More than 100 million trips and connections began or ended at the airport in 2015, according to Airports Council International.

(Reporting by Jonathan Allen in New York; Editing by Nick Zieminski)

Thousands flee wildfire in Ventura County, north of Los Angeles

VENTURA COUNTY, Calif. (Reuters) – A rapidly spreading wildfire in the foothills north of Los Angeles threatened thousands of homes on Tuesday, forcing residents to evacuate after causing at least one death and power outages throughout the area, officials said.

Some 7,700 households in Ventura County, California, about 70 miles (115 km) northwest of Los Angeles, were told to leave as the 31,000-acre wildfire, known as the Thomas Fire, burned dry brush after erupting earlier on Monday evening, Ventura County officials said on Twitter.

One motorist was killed fleeing the blaze, a local ABC television affiliate reported. More than 250,000 homes lost power and at least two structures were destroyed, a local power company said on Twitter.

“We got my kids out first,” Melissa Grisales told ABC 7 in Los Angeles. “Pretty scary, really. I didn’t think it was going to come to that, but I am starting to get pretty concerned.”

About 500 firefighters battled the fire that destroyed multiple structures, officials said on the Ventura County website.

Strong eastern winds pushed the fire toward the cities of Santa Paula and Ventura, where about 140,000 people live, county officials said.

“We’re really just trying to catch it around the edges and just pinching it off as quickly as we possibly can,” Ventura County firefighter Jason Hodge told the Los Angeles Times.

The fire was stoked by wind gusts of up to 70 mph (115 kph) that were expected to remain in the area along with low humidity through the week, the National Weather Service forecast.

About 390 students at Thomas Aquinas College were evacuated as a precaution, the school said on Twitter.

Evacuation centers were opened at a high school and the county fairgrounds, media reported.

(Reporting by Brendan O’Brien in Milwaukee; Editing by Catherine Evans and Jeffrey Benkoe)

Puerto Rico governor knocks U.S. Army Corps response to restoring power after hurricane

Cars drive under a partially collapsed utility pole, after the island was hit by Hurricane Maria in September, in Naguabo, Puerto Rico

By Nick Brown and Jessica Resnick-Ault

NEW YORK (Reuters) – Puerto Rico Governor Ricardo Rossello said the U.S. Army Corps of Engineers lacked urgency in restoring power to the storm-hit island, and that it was pushing the clean-up effort down the road.

The Army Corp was tasked as the leading federal agency to oversee power restoration in Puerto Rico about a week after the U.S. territory was devastated by Hurricane Maria.

Speaking to Reuters on a trip to New York, where he plans to meet Governor Andrew Cuomo, Rossello deflected to the Army Corps some of the criticism his administration has faced since Maria made landfall on Sept. 20.

Rossello and the island’s power authority, PREPA, were criticized for initially declining to seek so-called mutual aid from other U.S. public power utilities after the storm knocked out electricity to all of Puerto Rico’s 3.4 million residents.

That decision has become a focal point because it partly spurred PREPA to sign a no-bid contract with private firm Whitefish Energy Holdings – a deal Rossello canceled on Sunday after an uproar over its provisions.

Rossello has since sought mutual aid from utilities in New York and Florida.

But the initial decision to forgo it, he said on Thursday, was due in part to an understanding with the Army Corps that it could help restore power to Puerto Rico within 45 days, and would foot the bill at a time when the island’s bankrupt government could not afford to shell out much cash.

Six weeks after the storm, only about 30 percent of the island’s grid has been restored.

“We are very unsatisfied with the urgency the Corps” has shown, Rossello said. “Everything that has been done right now has been done by PREPA or the subcontractors PREPA has had.”

Jeff Hawk, a spokesman for the Army Corps, said in an emailed statement that “contracts usually take days to a couple of weeks, so we are moving quickly.”

Rossello also said he had some concerns about new parameters laid out on Tuesday by the federal board managing Puerto Rico’s finances, which would require his administration to submit a revised draft of a fiscal turnaround plan for the island by Dec. 22.

“We are in the process of answering to the board some of our concerns with the timelines,” Rossello said, adding that some of the parameters “are appropriate, and some are not, given the lack of information and the level of devastation in Puerto Rico.”

Puerto Rico filed the largest government bankruptcy in U.S. history this year to restructure $72 billion in debt.

Rossello said the revised plan would be centered around a strategy of reducing the size of government, boosting private sector partnerships, and reforming education and healthcare systems.

(Reporting by Nick Brown; Editing by Chizu Nomiyama and Susan Thomas)

Puerto Rico’s path to restore power shifts after Whitefish exit

By Jessica Resnick-Ault and Scott DiSavino

NEW YORK (Reuters) – Efforts to restore electricity to Puerto Rico nearly six weeks after Hurricane Maria are shifting as the island’s utility and its regulators, along with U.S. authorities, removed a key contractor and moved to triple the funding of another.

The U.S. Army Corps of Engineers, which is leading the federal power restoration effort, said it plans to boost the size of a key contract awarded to Fluor Corp by $600 million, to $840 million, according to a government filing.

The Army Corps said it was modifying the contract to ensure “continued execution of the critical repair and restoration of the electric power grid in Puerto Rico.”

It comes a day after Puerto Rican Governor Ricardo Rossello and the Puerto Rico Electric Power Authority (PREPA) said they would cancel a $300 million contract with Whitefish Energy Holdings, after an uproar over the deal’s provisions and the tiny Montana company’s lack of experience with projects of such a large size.

Fluor, which declined comment, was already in the process of bringing in people to help restore transmission and distribution of power to the U.S. territory. Hurricane Maria knocked out power to all 3.4 million residents of Puerto Rico, and only about 30 percent of power has been restored nearly six weeks later.

The Army Corps’ action on Monday signals that Fluor is now the primary contractor on Puerto Rico. The Army Corps awarded the original $240 million Fluor contract. The more controversial Whitefish contract was handled directly with PREPA.

The Whitefish deal came under fire after it was revealed last week that the terms were obtained without a competitive public bidding process. Residents, local officials and U.S. federal authorities all criticized the arrangement.

Conflict over who should lead the process of restoration and oversee PREPA has hampered efforts. PREPA, the island’s bankrupt power utility, and the governor have argued that the utility should maintain control, while a fiscal control board created by U.S. Congress last year to restructure the island’s finances has also jockeyed for control.

“PREPA and the governor of Puerto Rico and the administration here need to make a decision on who is in charge of PREPA,” said Ariel Horowitz of Synapse Energy Economics, a consultant to Puerto Rico’s energy regulator.

Puerto Rico’s energy commission, a small regulatory board tasked with overseeing PREPA, has the option of assigning an independent adviser to monitor progress in restoring the grid, but has not done so yet.

ISOLATION A PROBLEM

Currently, there are about 400 subcontracting crews on the island working to bring back power. Rossello said he wants to have 1,000 crews by Nov. 8, leaning on so-called mutual aid from utilities in New York and Florida, which have crews on the island.

Getting assistance from other utilities, which usually help one another after storms, may continue to be complicated by Puerto Rico’s isolation and lack of investment in its system.

A private sector source, who could not be named, said the transition from Whitefish, should it be handled smoothly, will hopefully accelerate the restoration of power. He said PREPA’S goal of restoring 95 percent of power by mid-December – a full three months after the hurricane – is slow for a typical utility.

PREPA did not respond to a request for comment.

Whitefish said it has completed significant work on two major transmission lines that crossed over the mountains of Puerto Rico. A person familiar with PREPA’s operations said on Monday that Whitefish would complete work on critical lines despite the cancellation of the contract.

Several other utilities are on the island, as well as private contractors that include Southern Co’s PowerSecure unit and Fluor.

An Army Corps spokesman said the Corps is not currently planning on hiring those reporting to Whitefish, but the subcontractors – Fluor and PowerSecure – might. Officials at Fluor and Southern did not comment on that possibility.

JEA, the municipal utility for Jacksonville, Florida, said it would keep its crew of about 40 people on the island, even if it no longer reports to Whitefish.

(Reporting by Jessica Resnick-Ault and Scott DiSavino; Additional reporting by Nick Brown; Editing by David Gaffen and Leslie Adler)

Tiny Montana firm’s Puerto Rico power deal draws scrutiny

A pick up from Montana-based Whitefish Energy Holdings is parked as workers (not pictured) help fix the island's power grid, damaged during Hurricane Maria in September, in Manati, Puerto Rico October 25, 2017. REUTERS/Alvin Baez

By Susan Heavey, Richard Cowan and Scott DiSavino

WASHINGTON/NEW YORK (Reuters) – Federal emergency officials raised “significant concerns” on Friday about a $300 million contract between Puerto Rico’s storm-hit power utility and a tiny Montana firm, as Democratic lawmakers stepped up calls for an investigation of the deal.

The Federal Emergency Management Agency said in a statement that after its initial review it “has not confirmed whether the contract prices are reasonable” under the agreement between Puerto Rico Electric Power Authority and Whitefish Energy Holdings, a two-year-old firm with just two full-time employees.

The contract between PREPA and Whitefish was awarded without a competitive bidding process.

Whitefish spokesman Ken Luce said the deal was secured when its chief executive and co-owner, Andy Techmanski, flew to Puerto Rico on Sept. 26, six days after Hurricane Maria tore into the bankrupt U.S. territory and knocked out power to all 3.4 million residents.

The contract, and the slow restoration of power on the island, has raised questions about who is effectively managing PREPA’s response to the hurricane, as about 75 percent of homes and businesses still lack electricity after several weeks.

Jose Roman, interim chairman of Puerto Rico’s Energy Commission, said the commission is looking into how Whitefish got the contract as part of a larger investigation to “determine the prudence of the actions of PREPA; not just the Whitefish contract,” he said.

PREPA did not respond to requests for comment.

Puerto Rico’s financial oversight board earlier this week said it would appoint an emergency manager to oversee PREPA, though that has met with pushback from Governor Ricardo Rossello, who may challenge such an effort in court.

It took more than a week after Maria hit the island for a damage assessment to be completed by PREPA, the chronically underfunded state utility. Eventually, FEMA put the U.S. Army Corps of Engineers in charge of short-term power restoration.

ZINKE: I HAD “NOTHING TO DO” WITH CONTRACT

A growing number of U.S. lawmakers have raised questions about the contract, the slow pace of power restoration, and Interior Secretary Ryan Zinke’s connections with Whitefish.

Representative Raul Grijalva, the senior Democrat on the Natural Resources Committee, and Representative Peter DeFazio, the top Democrat on the Transportation Committee, asked the Department of Homeland Security’s inspector general in a letter to investigate the contract’s execution, its terms, and “whether there was any political impetus behind the contract.”

The representatives noted that Whitefish is based in Zinke’s hometown and that Zinke’s son once worked for Whitefish. The letter also stated that a Whitefish financial backer, HBC Investments, was founded by Joe Colonnetta, a contributor to President Donald Trump’s campaign, as well as “many other Republican candidates.”

Zinke said in a release that “I had absolutely nothing to do with Whitefish Energy receiving a contract in Puerto Rico.” After the initial contract was awarded, “I was contacted by the company, on which I took no action,” he said.

White House spokesman Raj Shah said that the administration’s “understanding” was that the contract was awarded solely by PREPA, and they are “not aware of any federal involvement” in the deal.

U.S. Senate Democrats urged FEMA and the U.S. Army Corps of Engineers in a letter to unify efforts to restore power on the island.

They also called on FEMA and PREPA to name a top official to oversee all electrical contracts, and urged federal officials to more quickly clear crews from two companies, Fluor Corp <FLR.N> and PowerSecure, so they can begin restoration work.

Several utilities are involved in restoration, including Fluor, Whitefish, JEA, New York Power Authority, and others. Whitefish and its subcontractors have more than 300 people on the island, Luce said.

Techmanski first got in touch with PREPA following Hurricane Irma, during a bidding process to repair damages from that storm, which hit Puerto Rico two weeks before Maria, Luce said.

A copy of the contract surfaced online Thursday night, raising more questions, particularly over language blocking oversight of costs and profits.

“In no event shall PREPA, the Commonwealth of Puerto Rico, the FEMA administrator, the Comptroller General of the United States or any other authorized representatives have the right to audit or review the cost and profit elements,” said the document, published by several media outlets, whose authenticity was confirmed by Democratic staffers for the Natural Resources Committee.

House Democratic Leader Nancy Pelosi called for the immediate termination of the contract, saying “no federally-funded contract should be immune from routine oversight or circumvent a federal audit.”

Costs listed for hourly wages ranged in the hundreds of dollars and daily per diems of more than $330 for accommodations and nearly $80 for food, according to the “bid schedule” published online. The document put the cost of one-way airline flights for employees at $1,000.

Luce defended the deal, saying the company welcomed an audit or questions from Washington. “The contract was done in good faith with PREPA,” he said.

Rossello has also defended the contract, even as he ordered an audit. Initial results of the audit are expected to be released later on Friday, according to NBC News.

(Reporting by Susan Heavey, Richard Cowan, Timothy Gardner; additional reporting by Scott DiSavino, Jessica Resnick-Ault and Nicholas Brown; editing by Tom Brown and Diane Craft)

House panels seek documents on Puerto Rico utility deal

WASHINGTON (Reuters) – A U.S. congressional committee on Thursday set a Nov. 2 deadline for the Puerto Rico Electric Power Authority (PREPA) to provide information related to its $300 million contract with a small Montana firm to repair damage to the utility’s infrastructure caused by Hurricane Maria.

“Specifically, the size and terms of the contract, as well as the circumstances surrounding the contract’s formation, raise questions regarding PREPA’s standard contract awarding procedures,” the chairman of the House Natural Resources Committee, Rob Bishop, said in a letter to PREPA’s executive director, Ricardo Ramos.

Media reports that Whitefish Energy Holdings entered the contract with PREPA to fix the utility’s power grid raised questions among Democrats in Congress and others when it was disclosed that the Montana firm won the contract without a competitive bidding process.

The two-year-old company had only two full-time employees and was rapidly hiring workers to tackle the job of patching up the destroyed power grid that has left most of the U.S. territory without electricity for weeks following the destructive hurricane.

While Bishop’s letter said emergency circumstances could “necessitate” emergency relief contracts, “Transparency and accountability in government contracting, however, is not to be compromised.”

Separately, U.S. Representatives including Greg Walden, a Republican, and Frank Pallone, a Democrat, asked Whitefish in a letter to provide documents related to the contract to the Energy and Commerce committee before Nov. 9.

Whitefish founding partner Ken Luce said his company appreciated the efforts to gather information so lawmakers have “confidence in the overall process to support the people of Puerto Rico” and Whitefish’s capabilities.

And two Democratic U.S. senators urged the head of a congressional watchdog office to probe the PREPA contract, saying they were concerned about the bidding process and potential high costs.

Senators Maria Cantwell and Ron Wyden wrote a letter to Eugene Dodaro, the U.S. comptroller general at the non-partisan Government Accountability Office, a copy of which was seen by Reuters.

The senators said they were also concerned about reports of “contemporaneous communications between Whitefish and senior members of the federal executive branch, including Secretary of the Interior Ryan Zinke,” as the contract was being discussed.

A Washington Post report this week said the chief executive of Whitefish, Andy Techmanski, and Zinke acknowledged that they know each other and that one of the secretary’s sons worked at one of Techmanski’s construction sites. Both Zinke’s office and Techmanski said the secretary had no role in Whitefish securing the contract.

The Interior Department did not immediately respond to a request for comment on the senators’ letter.

Puerto Rico Governor Ricardo Rossello has defended the contract saying it was necessary to put workers in place quickly. Whitefish, which has hired workers mostly through subcontracts, has called criticism “unfounded.”

(Reporting by Richard Cowan, Timothy Gardner and Nick Brown in New York; Editing by Richard Chang and Tom Brown)

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