An AES Corp. (AES:US) unit sued an Idaho wind-farm developer for allegedly failing to fully pay for 32 turbines and related equipment it agreed in May to buy for $34.6 million.
Exergy Development Group of Idaho LLC didn’t fulfill the agreement after an initial delay resulted in a renegotiated payment schedule and a price increase of more than $3 million, according to a complaint filed at the U.S. court in Boise on Aug. 22.
AES New Creek LLC is seeking an award of unspecified money damages including interest from Boise-based Exergy, according to the complaint. Exergy’s chief executive officer said payment is forthcoming.
In a statement today, Exergy CEO James Carkulis attributed the slow payment to a case pending before the Idaho Public Utilities Commission which “has made project financing reluctant to close on Idaho projects for several months.”
“We have put a substantial down payment on these turbines and we fully intend to complete our purchase and use them in other projects,” Exergy’s CEO said. “We have projects under development in 17 states, Argentina and Canada, over half of which shall be online by the end of 2013.”
Exergy made a non-refundable payment of more than $1.7 million when the contract was signed on May 30, according to the AES complaint.
According to its website, Arlington, Virginia-base AES Corp. is a 31-year-old developer and operator of traditional thermal power plants as well as solar- and wind-power generators with operations in 27 countries on five continents.
AES rose 5 cents to $11.56 in New York Stock Exchange composite trading.
The case is AES New Creek LLC v. Exergy Development Group of Idaho LLC, 12cv433, U.S. District Court, District of Idaho (Boise).
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