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Texas wind farms sue Citigroup for allegations of storm



(Reuters) – A Canadian renewable energy company sued Citigroup Inc. on Wednesday for dismissing force majeure statements during a winter storm in February, billing it over $ 100 million in compensation, according to lawsuits filed in a state court in Texas. [19659002] Shannon Wind and Flat Top Wind, a subsidiary of Innergex Renewable Energy Inc., operates North Texas wind farms that stopped their wind turbines during a freeze on the Arctic road. Both had agreements to physically supply power to Citi Energy, a unit of Citigroup Inc., at fixed prices.

Unusually cold temperatures knocked out nearly half of the state's power plants in mid-February, leaving 4.5 million people without heat or light for several days and bankrupting at least three companies due to high wholesale electricity prices.

The wind companies, which are partly owned by Starwood Energy Group Global and a fund run by BlackRock Inc., declared force majeure after their wind turbines froze. But their lawsuits in a Texas court claimed that Citi ignored the declarations and billed them for electricity they bought at inflated prices.

BlackRock declined to comment and Starwood had no immediate comment. Innergex did not immediately respond to a request for comment.

Citi said that the agreements require that disputes be resolved by courts in New York and applied to New York law.

"We are not aware of any legitimate basis for these cases. to be filed in Texas, "Citi said in a statement.

Citi billed Shannon Wind for $ 39.5 million for four days of electricity and billed Flat Top Wind for $ 79.3 million for seven days of electricity, according to the complaints filed in Harris County District Court, Houston.

The invoices represent more than their expected revenue for the full year, the lawsuits say, claiming that Citi Energy "incorrectly neglected" them and are ready to exclude both projects.

The lawsuits asked the court to prevent Citi Group from taking further action after the wind companies were asked to pay their invoices until Friday.

Citi billed replacement power at $ 9,000 per megawatt hour, compared to approximately $ 22 to $ 26 per megawatt hour under their contract. Catalog

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