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0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation | Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Classifieds Jobs Autos Real Estate FEATURED » NEWS NOW California man dies in I-5 rollover ... Medford man wins Megabucks jackpot ... Budget tops $339 million for 2016-17 ... California man dies in I-5 rollover ... Medford man wins Megabucks jackpot ... Budget tops $339 million for 2016-17 ... NORTHWEST ENERGY PGE files lawsuit over shoddy work, unpaid subcontractors at Boardman plant Comment By The Associated Press MailTribune.com By The Associated Press Posted Mar. 29, 2016 at 3:26 PM By The Associated Press Posted Mar. 29, 2016 at 3:26 PM » Social News PENDLETON — A Portland-based electricity provider that fired the contractor building its natural gas plant in Boardman is suing the backers of a bond guaranteeing construction. Portland General Electric filed the lawsuit March 23 against Liberty Mutual Surety and Zurich North America, the backers of the plant's $145.6 million performance bond, the East Oregonian reported. Both insurers named in the lawsuit deny liability. The contractor's parent company says the contract was wrongfully terminated. PGE's lawsuit says the company has found potentially dangerous defects since taking over construction of the Carty Generating Station in December. The lawsuit also says subcontractors have asserted almost $30 million in claims against the project for work that went unpaid by contractor Abeinsa, a subsidiary of Spanish energy firm Abengoa. Construction cost estimates have risen by $156 million. PGE is seeking $180 million in damages. Without the insurance money, the company may request a rate hike. "We would have to demonstrate through the (Oregon Public Utility Commission's) public process that the costs were prudently incurred," said utility spokesman Steve Corson. Abeinsa was hired in 2013 from a pool of a dozen proposals. PGE says in its lawsuit that it advanced $5 million to Abengoa for payments to workers in November. Workers were turned away from the construction site on Dec. 14 and an attorney for the Spanish firm said the company needed immediate financial assistance. PGE terminated the contract four days later after plans for another advance stalled. Abengoa is pursuing arbitration to settle what it called a breached contract. The plant is mostly complete. Corson says defects may cause delays, but that the company is still targeting a July 2016 opening. By The Associated Press MailTribune.com By The Associated Press Posted Mar. 29, 2016 at 3:26 PM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... Business Name address Location, ST | website.com Find Southern Oregon Attractions Bars Restaurants Beauty Salons Entertainment Doctors Medical Specialists Contractors Education Lawn Services Lawyers Shopping Travel Tanning Used Cars Wedding Services ▼ Add your business here + Events Calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Propel Marketing Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Mobile Site Stay Informed Email newsletter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Your privacy is important, read our privacy policy. © Copyright 2016 Local Media Group, Inc. All Rights Reserved. Privacy Policy | Terms of Service | Local Media Group Publications Original content available for non-commercial use under a Creative Commons license, except where noted. MailTribune.com | P.O. Box 1108, Medford, OR 97501