Dallas-based Mesa Power Group LLC ("Mesa") has filed a Notice of Intent with the Canadian federal government indicating that it will challenge Ontario's Green Energy Act ("GEA") and Feed-in Tariff Program ("FITP") for alleged violations of the North American Free Trade Agreement ("NAFTA").
Mesa had two proposed wind projects in the Bruce transmission region of Western Ontario which were not recipients of FITP Power Purchase Agreements ("PPA") with the Ontario Power Authority ("OPA").
In its Notice of Intent filing, Mesa claimed that changes made by OPA to the rules for awarding PPAs in the Bruce transmission region violated Article 1105 of NAFTA with respect to non-discriminatory treatment of investors of another NAFTA signatory. Mesa also claimed, among other things, that the GEA contains "buy local" performance requirements that contravene Article 1106 of NAFTA.
Mesa stated that it expects to file a formal NAFTA Notice of Arbitration some time after October 3, 2011.