Canadian Manufacturing

U.S. wind firm loses NAFTA challenge to Ontario power procurement process

Mesa Power will be forced to pay a portion of Canada's $2.95 million legal defence as company's claim falls short



Wind energy production in Ontario has doubled since 2009. PHOTO Harvey McDaniel

Mesa power filed the claim in 2011 under the North American Free Trade Agreement. PHOTO Harvey McDaniel

OTTAWA—Texas-based Mesa Power has lost its legal challenge under the North American Free Trade Agreement on how Ontario ran its renewable energy bidding process.

The company filed the chapter 11 NAFTA claim in 2011, accusing the province of failing to conduct an open and fair procurement process.

The wind power company, founded by oil and gas tycoon T. Boone Pickens, was claiming damages of $658 million.

Company executive Cole Robertson said in a statement that he thinks the tribunal “got this one wrong,” and is reviewing the decision.

The federal government said in a release that it worked closely with the Ontario government on the case, and welcomed the decision that confirmed Canada was in compliance with its NAFTA obligations.

The government said the tribunal also ruled that Mesa Power should pay the costs of the arbitration and a portion of Canada’s legal defence for a total of $2.95 million.

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