In Brief
MESCOM, a power distributor, disputed the termination of its Power Purchase Agreement (PPA) with AMR Power, a renewable energy generator, dated August 2006. AMR terminated the agreement citing MESCOM's defaults: delayed payment of bills for January–February 2011 (paid months later), non-payment of penal interest, and failure to open a Letter of Credit. MESCOM claimed inter-connection approval delays justified the payment delays. The Court upheld the termination, holding that: (1) Article 9.2.2 of the PPA classifies such failures as material breaches; (2) AMR followed the contractual procedure (30-day cure notice); (3) inter-connection approval was not a condition precedent to payment; and (4) subsequent power supply did not condone the defaults. Appeal dismissed.
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