Versant Power wrongfully claimed more than $2 million of renewable energy credits from a hydroelectric dam, a lawsuit alleges.
Bangor-Pacific Hydro Associates, which owns the West Enfield Dam on the Penobscot River, is accusing Versant of illegally taking its renewable energy credits for six years and selling them for “significantly more than” $2 million, according to the lawsuit filed Nov. 29 in Penobscot County Superior Court.
Bangor-Pacific asked a judge to declare the credits are theirs, not Versant’s, and award damages of at least $2 million. Under the power purchase agreement between the companies, only electricity is sold to Versant, not the renewable energy credits, the lawsuit said.
“At this time, we are reviewing the complaint and will be preparing a response,” Versant Communications Specialist Tina Morrill said.
Before the lawsuit was filed, Bangor-Pacific had demanded the return of the credits or compensation for them, which Versant ignored. Without a court order, the lawsuit said Versant will continue to collect the dam credits.
Versant believes it is “entitled to a windfall, receiving both the power generated at the facility and all [renewable energy credits] for the facility,” while paying what the lawsuit said is a low monthly total from the purchase agreement.
“These valuable [renewable energy credits] belong to Bangor-Pacific, but now that Versant Power collected and sold them, Bangor-Pacific is permanently deprived of their value,” the lawsuit said.
Bangor-Pacific sells up to 16,000 kilowatts of electricity to Versant every year.