Michigan utilities awarded financial damages for work performed on pumped hydro plant

AI Summary

• •Michigan utilities Consumers Energy and DTE Energy were awarded financial damages in a jury verdict against Toshiba for "defective" work on an upgrade to a pumped hydro facility.
• •This case underscores the significant financial and operational risks associated with equipment supplier performance in large-scale energy infrastructure projects, particularly for long-duration storage assets.
• •Developers and IPPs should prioritize stringent due diligence on equipment suppliers (OEMs), robust contract terms, and comprehensive quality assurance protocols to mitigate risks of defective work and ensure project reliability and financial viability.