Benton County Wind Farm LLC v. Duke Energy Indiana, Inc.

Federal 7th Circuit Court
Civil Court
Contracts
Citation
Case Number: 
No. 15-2632
Decision Date: 
December 6, 2016
Federal District: 
S.D. Ind., Indianapolis Div.
Holding: 
S.D. Ind., Indianapolis Div.

Dist. Ct. erred in granting judgment in favor of defendant-purchaser of power from plaintiff’s wind-generated power plant, under terms of contract requiring defendant to purchase all power generated by plaintiff’s plant. Record showed that defendant bid $0 for power in power auction in effort to generate space on power grid that would allow plaintiff to place its power on power grid that would, in turn, enable defendant to purchase power from defendant, and that MISO at times directed plaintiff to stop producing power at times when defendant’s bid was not accepted and when power grid was already at capacity so as to prevent plaintiff from placing its power on power grid. While defendant argued that instruction by MISO to plaintiff to stop producing power excused defendant from having to pay plaintiff for power that failed to make it onto power grid, certain clauses in relevant contract calling for defendant to obtain sufficient “transmission services” for plaintiff’s power required defendant to pay plaintiff for power that did not make it to power grid.