Dive Brief:

• NaturEner, a privately held wind developer, and San Diego Gas & Electric (SDG&E) have sued each other for breaching contracts related to the 189-MW Rim Rock wind farm in Montana.
• SDG&E contends that NaturEner is failing to adequately protect Golden Eagles and other rare birds. The wind developer argues that it has a strong avian protection program and that SDG&E simply has “buyer's remorse” over the contract.
• SDG&E, a Sempra Energy subsidiary, agreed to invest about $285 million in tax equity financing in the project in exchange for renewable energy credits (REC). SDG&E has been buying RECs from the wind farm since it started operating in January 2012.

Dive Insight:

The outcome of this unusual suit has major financial implications. If SDG&E gets out of its contract, it would likely be able to buy replacement renewable generation at a much lower price. But if the courts agree with the utility, NaturEner's financing for the project would likely fall apart. It appears that NaturEner has the most to lose in the dispute.