Wind Farms Sue Citigroup for Rejecting Force Majeure During February Winter Storm
A Canadian renewable energy firm is suing Citigroup for rejecting force majeure declarations during a February winter storm, and charging it over $100 million for replacement power.
Shannon Wind and Flat Top Wind - both subsidiaries of Innergex Renewable Energy Inc, operate North Texas wind farms that halted their wind turbines during an arctic deep freeze. Both had agreements to physically deliver power to Citi Energy, a unit of Citigroup, at fixed prices.
Extremely-low temperatures in February have disabled nearly half of the state's power plants, leaving 4.5 million people without heat or light for days and bankrupting at least three companies due to high wholesale power prices.
According to the Texas-state-court-filed lawsuit, the wind firms, partly owned by Starwood Energy Group Global and a fund run by BlackRock Inc declared force majeure after their turbines froze, but Citi ignored the declarations and invoiced them for electricity it bought at inflated prices.
The lawsuits ask the court to prevent Citi Group from going after the wind companies were advised that they have until Friday to pay their outstanding invoices.
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