Texas Justices Blow Away $29M Wind Energy Credit Penalty

Law360, Houston (March 21, 2014, 5:34 PM EDT) -- The Texas Supreme Court said Friday that an Energy Future Holdings Corp. unit’s contract for renewable energy imposed an unreasonable $29 million penalty against a predecessor of NextEra Energy Inc., rendering the damages provision unenforceable.

Partially reversing a Fifth District Court of Appeals ruling, the high court said that Energy Future subsidiary Luminant Energy Co. LLC unfairly benefited from the agreement's liquidated damages provision applying to underdelivery of renewable energy credits, because it forced FPL Energy LLC to pay a penalty far above the market value...
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