Texas Utility's Liability Capped At $60M In Wind Farm Fight

Law360 (August 27, 2019, 5:16 PM EDT) -- A federal judge on Monday capped a Texas utility's liability at $60 million for its decision to stop buying electricity from a wind farm, saying that's the only reasonable interpretation of the power purchase agreement between the parties.

U.S. District Judge Sam Sparks' ruling limiting the liability of the Lower Colorado River Authority for breaching its PPA with Papalote Creek II LLC echoes an arbitrator's 2016 conclusion that the PPA capped the utility's liability at $60 million. But that ruling never went into effect, as the Fifth Circuit said the dispute was a contract interpretation issue not covered by the agreement's...

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