Lawsuit claims Tx Panhandle wind farm not financially responsible after winter storm causes frozen turbines
A wind farm in the Texas Panhandle filed a lawsuit, claiming it should not have to pay JP Chase Morgan $71 million after February’s historic snow storm.
The lawsuit claims the storm was an unforeseeable circumstance that caused shortages of electricity when their wind turbines froze.
The wind farm, located in Deaf Smith and Oldham counties, entered a hedge contract with JP Morgan in which the institution agreed to pay a fixed price for stated quantities of electricity from January 1, 2020 through December 31, 2031.
However, court documents say the wind farm was not able to deliver enough electricity when the storm caused the turbines to freeze.
The owners of the wind farm is now looking for judicial declaration that should relieve the wind farm of its requirements during the period of time after the winter storm.
Owners of the facility in Oldham and Deaf Smith counties say the turbines iced over and couldn’t operate for about 10 days.
Their electricity was to go to JP Morgan Chase for resale downstate. At that time, rates went up astronomically because other producers including plants fueled by natural gas were crippled by supply and demand in the record low temperatures.
The wind owners say it was an act of God that allows them not to meet contract demands.
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