$123 million damages for AEP

A federal judge has ruled in favour of

in its suit against

(now known as Suez Energy Marketing) regarding a contract related to a

power generating facility completed by AEP in 2004.

Federal District Court Judge Harold Baer Jr, of the US District Court for the Southern District of New York, ruled that Tractebel breached the contract and awarded AEP damages of $123 million, plus pre-judgement interest. The court, however, disallowed AEP´s claimed damages for lost profits.

The ruling relates to a contract between AEP and Tractebel, executed in November 2000, in which Tractebel received 20 years rights to 800 megawatts of power from a plant built by AEP at The Dow Chemical Company´s Plaquemine, Louisiana, chemical complex. In return for the rights to the output, Tractebel was required to take 620 megawatts and pay a fixed monthly capacity payment to AEP.

"We’re pleased that the court recognised that AEP acted in good faith in its dealings with Tractebel," said Michael G. Morris, AEP´s chairman, president and chief executive officer.