Reliant Energy Channelview steam supply agreement dispute settlement approved

By Caroline Salls

Pittsburgh, Dec. 11 - Reliant Energy Channelview, LP obtained court approval of a steam supply agreement dispute settlement with Equistar Chemicals, LP, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the motion, the dispute arose from the calculation of steam agreement damages resulting from a March 1, 2006 outage.

Equistar filed a lawsuit seeking an estimated $37 million in damages.

Reliant said it later told Equistar that it planned to sell its business, and the company asked Equistar to cooperate with the sale process.

As a result, the parties settled the dispute.

Under the settlement, Reliant will pay $10 million to Equistar within three days of the sale closing. The sale must close by Dec. 31.

In exchange, Equistar has agreed to drop its lawsuit against Reliant.

Houston-based Reliant Energy provides electricity and energy services. The company filed for bankruptcy on Aug. 20. Its Chapter 11 case number is 07-11160.

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