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ARTICLE · 04 AUGUST 2011

Mesa Power Brings Claim Under NAFTA Over Ontario's Green Energy Program

Blake, Cassels & Graydon LLP
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On July 6, 2011, by issuing a notice of intent, Mesa Power initiated the first step in a claim against Canada under Chapter 11 of the North American Free Trade Agreement (NAFTA).

CanadaEnergy and Natural Resources
Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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Copyright 2011, Blake, Cassels & Graydon LLP

Originally published in Blakes Bulletin on International Trade & Investment Group, July 2011

On July 6, 2011, by issuing a notice of intent, Mesa Power initiated the first step in a claim against Canada under Chapter 11 of the North American Free Trade Agreement (NAFTA). Mesa Power is a private Texas-based wind energy company owned by T. Boone Pickens, the famous American financier. The company argues that Ontario's Feed-In Tariff Program (FITP), created under the Green Energy Act, is a violation of Canada's NAFTA obligations because it allegedly gives preferential treatment to certain businesses and contains prohibited "buy local" requirements. The company also argues that, in general, the FITP is being implemented and administered in an arbitrary and non-transparent manner. Among the relief sought, Mesa Power is asking for C$775-million in damages. The company expects to file a formal notice of arbitration sometime

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