Judge Awards TXU Nothing in Wind Case

A Dallas judge has reversed an earlier jury verdict and ruled that Dallas-based TXU Corp. is not entitled to any damages in a contract dispute with wind farm operator FPL Energy. The dispute centered on claims that FPL Energy had not supplied levels of wind energy from three West Texas wind farms as agreed upon in a contract. The contract dispute began in 2004 when TXU Corp sued FPL Energy, claiming that the company’s Indian Mesa and Pecos wind farms had failed to meet their contracts. The lawsuit originally sought $46 million in damages and interest

FPL counterclaimed, alleging that they could not satisfy the contract because TXU had clogged high-voltage transmission lines intentionally, preventing the delivery of electricity produced by FPL’s turbines. In June 2007, a jury awarded $8.9 million to TXU. The jury verdict was overturned by Judge Bruce Priddy, who ruled that TXU should take nothing in the case.

“The judge correctly looked at the facts of this case and saw that TXU is not entitled to any damages,” said FPL Energy’s lead counsel Mike Lynn. “This is an important victory for the wind energy industry. Wind energy is a competitive and promising source of clean and renewable electricity for Texas, and it deserves a level playing field.”

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