Besicorp announces federal court denial of motion for anti-trust preliminary injunction against Rochester Gas & Electric.KINGSTON, N.Y.--(BUSINESS WIRE)--Nov. 7, 1995--In a ruling issued November 2, U.S. District Court for the Western District of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of denied a motion for a preliminary injunction A temporary order made by a court at the request of one party that prevents the other party from pursuing a particular course of conduct until the conclusion of a trial on the merits. A preliminary injunction is regarded as extraordinary relief. brought by Kaminc/Besicorp Allegany L.P. ("Allegany") as part of an antitrust Antitrust The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade. suit against Rochester Gas & Electric Corporation ("RG&E"). The suit, filed on Jan. 27, 1995, is based upon RG&E's refusal to accept power from the Allegany project. RG&E was ordered to purchase power from Allegany at the SC5 tariff rate which is RG&E's avoided cost as measured at the time of delivery. RG&E refused to take power when Allegany declared commercial operations on Dec. 21, 1994. Allegany filed an antitrust lawsuit alleging that RG&E was using monopsony monopsony In economic theory, market situation in which there is only one buyer. An example of pure monopsony is a firm that is the only buyer of labour in an isolated town; such a firm would be able to pay lower wages to its employees than it would if other firms were and monopoly powers to drive Allegany out of business. The Allegany project has been operating pursuant to a Temporary Restraining Order temporary restraining order: see injunction. issued on Mar. 20, 1995. The Court has now delivered its opinion that Allegany would not suffer irreparable ir·rep·a·ra·ble adj. Impossible to repair, rectify, or amend: irreparable harm; irreparable damages. [Middle English, from Old French, from Latin harm if a preliminary injunction is denied. Michael F. Zinn, president of Besicorp, which owns 50% of the Allegany project, had the following comments: "We believe that the judge made a most unfortunate error. The Allegany project simply cannot survive selling power at SC5 tariff rates. Allegany cannot purchase fuel, and cover its other operating costs operating costs npl → gastos mpl operacionales let alone make any interest or principal payments on its debt, therefore, the Allegany project is clearly in grave danger Grave Danger is the name of the last two episodes in the of the popular American crime drama , which is set in Las Vegas, Nevada. This two parter was directed by Quentin Tarantino and was aired on May 19, 2005. . Allegany is presently evaluating all of its options in discussion with its lenders." "Despite the Court's ruling, we still regard RG&E's behavior as predatory, anti-competitive and bad for the ratepayers. RG&E continues to generate power from its own facilities at substantially greater cost than power is available from Allegany, and yet RG&E persists in representing Allegany's power as expensive by comparing Allegany's long term fixed prices to the present cost of excess power now available from other utilities on a short-term, interruptable basis." "Allegany built a new $100 million clean power facility in reliance on the 25 year contract with RG&E, which has been approved by the New York State Public Service Commission. We remain confident that Allegany will prevail in the ultimate resolution of all claims, and be able to convince the proper court that the Allegany power contract is a binding and enforceable obligation of RG&E." CONTACT: Besicorp Group Inc., Kingston Michael F. Zinn, 914/336-7700 |
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