Utility Asks 5th Circ. To Keep $60M Wind Farm Liability Cap

Law360 (February 6, 2020, 4:32 PM EST) -- A Texas utility told the Fifth Circuit on Wednesday that a lower court was right to limit its liability to $60 million for halting power purchases from a wind farm long before the end of a fixed-term contract based on a straightforward reading of clear contract language.

The Lower Colorado River Authority said that when it decided to stop buying power about a third of the way through its 18-year contract with wind farm Papalote Creek II LLC to avoid a high, fixed-price source, the power purchase agreement limited its payout to $60 million. Both sides were interested in limiting their...

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