Montana wind farm operator sues California utility for breach of contract

CUT BANK, USA: NaturEner, which owns and operates three wind farms in Montana, sued a California utility on Friday for breaching contracts to invest in the Rim Rock wind farm. The lawsuit also seeks to prevent the utility from reneging on its contractual promise to buy the renewable energy generated at the facility.

San Diego Gas & Electric, a subsidiary of energy conglomerate Sempra Energy, had agreed to invest approximately $285 million in the 189-megawatt Rim Rock wind farm and to purchase renewable energy credits as part of its obligation under California law to use renewable power. SDG&E has been purchasing renewable energy credits from Rim Rock since the project began operating 16 months ago.

The utility informed NaturEner it would not honor the deal, wrongfully claiming that the company had not satisfied some of the provisions of the contracts, mostly related to the protection of eagles and other birds.

In fact, NaturEner has implemented industry-leading wildlife conservation measures at the Rim Rock project. These measures include the installation of innovative radar detection systems for eagles, and the positioning of trained avian biologists at different locations who can immediately pause wind turbines, in coordination with NaturEner's 24/7 real-time Operations Center, if there is even a slight risk of potential harm to an approaching eagle. These protections have been very effective, and no eagle has ever been harmed at the project.

NaturEner's lawsuit, filed in Montana District Court in Toole County, argues that the utility's actions are motivated by buyer's remorse, because of the falling price of renewable power.