NaturEner sues SDG&E for breach of contract

NaturEner, owner and operator of three wind farms in Montana, has filed a lawsuit against San Diego Gas & Electric (SDG&E) for alleged breach of contract, claiming that the California utility has failed to make planned investments in NaturEner under the terms of power purchase agreements (PPA) between the two parties. According to NaturEner, SDG&E had agreed to invest approximately $285 million in the 189 MW Rim Rock wind farm and to purchase renewable energy credits (RECs) that would be used to fulfill the utility’s obligations under California’s renewable portfolio standard (RPS) rules. SDG&E had been purchasing the RECs since the Rim Rock facility began operating in 2012, but announced during the week of December 15 that it would no longer honor the contract because NaturEner is not satisfying certain provisions of the contracts, primarily related to the implementation of measures to prevent avian deaths. In its lawsuit, NaturEner claims that these allegations are false, and that it has implemented industry-leading wildlife conservation measures at the Rim Rock project. The lawsuit claims that SDG&E’s reneging on the contract is motivated by “buyer’s remorse,” as the price of renewable power falls below the contractually fixed price.