By: Derek Hawkins//December 12, 2016//
7th Circuit Court of Appeals
Case Name: Benton County Wind Farm, LLC v. Duke Energy Indiana, Inc.,
Case No.: 15-2632
Officials: POSNER, FLAUM, and EASTERBROOK, Circuit Judges.
Focus: Contract Interpretation – Damages Clause
“In this litigation Duke takes the position that, when MISO tells Benton to stop delivering power, it does not owe Benton anything. Benton takes the position that Duke could put Benton’s power on the grid by making a lower bid (MISO accepts bids as low as negative $500 per MWh), thereby displacing other producers’ power, and that when Duke elects not to do this it owes liquidated damages under the contract. Sometimes for load-balancing or other technical reasons MISO tells Benton to stop delivering power even when the market price exceeds zero and Duke’s bid nominally has been accepted. Benton acknowledges that in this situation Duke need not pay damages.”
Reversed and Remanded