Lower Colorado River Authority (LCRA) signed an 18-year contract for energy from the Papalote Creek Wind Farm II located in southeast Texas. The contact price was fixed for the term of the agreement at $64.75 a megawatt-hour. With wind now selling at half that price, LCRA is seeking to reduce its liability. There is a dispute between LCRA and Papalote Creek as to the cost if LCRA tries to end the contract early. This motion, filed by LCRA in federal court is intended to compel the wind company into arbitration in order to settle the dispute. LCRA sells wholesale power to dozens of Central Texas communities. A portion of the filing is provided below. The full motion can be accessed by clicking the links on this page.
Documents filed under Legal from Texas
This important ruling by the Fifth Circuit Court of Appeals involves wind power and whether utilities are mandated under Public Utilities Regulatory Policies Act of 1978 (PURPA) to purchase the energy. In the ruling, the Court found that states have the right to limit the ability of renewable energy facilities to sell power under PURPA through long-term contracts unless the facilities can provide “firm power.” This “firm power” requirement is a problem for renewable energy developers, in particular wind and solar. The ruling also reinforces the role of the States in their interpretation and implementation of the law. In this case, Exelon, which owns a number of operating wind energy facilities in Texas, argued that the utilitty was required under PURPA to sign long-term contracts to acquire the energy at prices ranging from $35 to $90/megawatt hour. The Court disagreed. A brief portion of the court's ruling is provided below. The full ruling can be accessed by clicking the links on this page.