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NORCON POWER v. NIAGARA POWER

92 N.Y.2d 458 (1998)

705 N.E.2d 656

682 N.Y.S.2d 664

Norcon Power Partners, L.P., Respondent, v. Niagara Mohawk Power Corp., Appellant.

Court of Appeals of the State of New York.

Decided December 1, 1998.

Attorney(s) appearing for the Case

Swidler & Berlin, Chartered (John R. Ferguson and Timothy A. Ngau, of the District of Columbia Bar, admitted pro hac vice, of counsel), Lankenau, Kovner & Kurtz, L. L. P., New York City (Sharon L. Schneier of counsel), Paul J. Kaleta, Syracuse, and Brian K. Billinson for appellant.

Chadbourne & Parke, L. L. P., New York City (Thomas J. Hall, Brian A. Miller and Christine P. Searl of counsel), for respondent.

Lawrence G. Malone, Albany, and Jonathan D. Feinberg for Public Service Commission of the State of New York, amicus curiae.

Chief Judge KAYE and Judges SMITH, LEVINE, CIPARICK and WESLEY concur.

BELLACOSA, J.

The doctrine, known as demand for adequate assurance of future performance, is at the heart of a Federal lawsuit that stems from a 1989 contract between Norcon Power Partners, L.P., an independent power producer, and Niagara Mohawk Power Corporation, a public utility provider. Niagara Mohawk undertook to purchase electricity generated at Norcon's Pennsylvania facility. The contract was for 25 years...

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