By Jerry Carter. A Washoe County Business Court Judge recently entered an Order on Application Granting Preliminary Injunction. The plaintiff mining company built a power plant at a cost of more than a half a billion dollars. The mining company contended that if the defendant power company installed series compensation equipment at a neighboring substation, the equipment could cause sub synchronous resonance (“SSR”) effects on the power plant which could result in catastrophic generator failure. The Court found that the mining company enjoyed a reasonable probability of success on its claims for bad faith and for breach of contract, and that irreparable harm would result in the absence of a preliminary injunction.
The preliminary injunction states:
“Defendant, SPPC, and Intervenor, GBTS, are hereby individually and jointly enjoined and prohibited from operating or energizing series capacitors on the 345 kV transmission line from the Falcon substation to Robinson Summit substation at more than 35 percent compensation until such time as Plaintiff, NNEI, has installed, tested and commissioned blocking filters for the TS Power Plant generator, which is anticipated to be complete by June 30, 2014. The Court has been advised that the blocking filters will be tested and commissioned during the month of June 2014, which will require that NNEI and SPPC cooperate in energizing and/ or shutting down the TS Power Plant and/ or series compensation equipment as needed to complete the testing process. The parties are ordered to cooperate with each other in that process. Nothing in this order shall be construed to preclude SPPC, in cooperation and coordination with NNEI to avoid inadvertent damage, from energizing the 345 kV transmission line from Falcon substation to Robinson Summit substation at 70 percent series compensation from April 19, 2014, to May 31, 2014, during which time the TS Power Plant is scheduled to be offline for scheduled maintenance and installation of the blocking filters.”
“The Court anticipates and orders that this injunction will remain effective from the date of entry, until such time as the blocking filters are installed, commissioned and operating as designed in order to fully protect the TS Power Plant from the SSR created by the use of series compensation equipment.”