Pacificorp v. Lakeview Power Co.

In 1984, plaintiff Pacificorp and defendant Lakeview Power Company entered into a contract whereby plaintiff agreed to purchase the electric power that would eventually be produced at defendant’s planned cogeneration plant. In 1988, defendant sued plaintiff, claiming that plaintiff had wrongfully repudiated the contract and prevented the completion of the project. That lawsuit was settled and, in January and February, 1989, the parties entered into four written agreements. One of those instruments, the Power Purchase Agreement (PPA), provided that the contractual relationship would…