$31M Avangrid-Nike dispute over Texas freeze wind power payments heats up

by Pete Danko, Portland Business Journal | Source: Biz Journals | Posted 08/08/2023

Nike signed a "virtual power purchase agreement" with Avangrid for a portion of the output from a south Texas wind farm.

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Avangrid has requested an Oregon court to dismiss Nike's $31 million lawsuit regarding a Texas wind power contract and a severe freeze in February 2021. Avangrid defended its actions during Winter Storm Uri, highlighting the efforts made by its technicians to keep the turbines operational, resulting in $29.4 million in production incentives from Texas grid operator ERCOT. Nike claims it is entitled to a portion of this compensation under a "virtual power purchase agreement" struck with Avangrid, intended to secure green energy for its operations.

In response, Avangrid argues that Nike is not entitled to the incentives as per the terms of the contract, which point to a different pricing mechanism that excludes adders. Avangrid highlights the public-policy purpose of adders in emergencies and disputes Nike's claim, emphasizing that the contract language should govern the dispute. Nike, claiming support from a former Avangrid employee on the payments, faces Avangrid's assertion that such arguments do not align with the clear terms of the agreement, setting the stage for further legal proceedings between the two parties.

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Source Link: https://www.bizjournals.com/portland/news/2023/08/08/avangrid-nike-motion-to-dismiss.html

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$31M Avangrid-Nike dispute over Texas freeze wind power payments heats up

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