Edmonton Seeks $82 Million in Damages Over EV Bus Failures Amid Manufacturer Proterra’s Bankruptcy

A Proterra ZX5 battery-powered electric bus was parked in downtown Miami on Feb. 2, 2023. The City of Edmonton is seeking $82 million in damages over failures in operations of electric buses acquired from the company. AP Photo/Wilfredo Lee

The City of Edmonton is seeking more than $82 million in damages from electric vehicle (EV) manufacturer Proterra, citing alleged performance failures.

Between February 2019 and August 2021, Edmonton acquired 60 electric buses from the U.S.-based company. In the contract for the bus acquisition, Proterra had guaranteed specific operation range, particularly their capability to operate in Edmonton’s severe winter climate, according to the claim. However, the city stated that the vehicles consistently fell short of meeting this range.

“Contrary to the Contract specification that the Buses would be suitably designed to perform in Edmonton’s climate conditions and would have an operating range of 328 km, or 268 km in extreme cold, the range has consistently been much shorter, even at the beginning of the Bus battery life,” the city stated in a claim filed on Feb. 2.

“On average, the bus range has been approximately 165 kilometres in the winter and, at best, 250 kilometres in warmer weather.”

The city highlighted additional issues, including gearbox failures, steering box failures, and cracking in the composite body structure, further impeding the operation of most electric buses.

“As a result of the hardware issues, more than half of the buses are regularly out of service. At most, the city has 28 of the 60 Buses on the road at any given time.”

The Epoch Times reached out to Proterra for comment, but didn’t hear back by publication time.

Bankruptcy

The City of Edmonton’s claim against Proterra stated that the company was in the process of attempting to rectify the bus range issues when it filed for bankruptcy.

In August 2023, Proterra filed for Chapter 11 bankruptcy protection, under the U.S. Bankruptcy Code. This protection allows a company to remain operational while restructuring its financial obligations.

In November, Proterra sold its assets to Phoenix Motorcars through an auction, taking effect on Jan. 11, 2024.

Days later, the company filed a motion seeking to reject certain executory contracts, including the one involving Edmonton.

The Edmonton Transit Service (ETS) said the city’s contract with Proterra was not assumed by Phoenix, therefore none of the warranty obligations, including the battery replacement, will be fulfilled by Phoenix.

“While we are unable to provide specific information with respect to the City’s plans at this time, the City is evaluating its longer-term options in order to protect our legal and financial interests,” ETS Branch Manager Carrie Hotton-MacDonald told The Epoch Times in an email statement.

In response to Proterra’s bankruptcy, the city sought $1.3 million in advance over maintenance and other issues with the buses. However, it is now requesting over $82 million, citing breach of contract and negligence.

Edmonton is among over 1,400 cities, entities, and individuals seeking claims against Proterra.

In an October 2023 letter addressed to U.S. President Joe Biden, Republican Sen. John Barrasso highlighted Proterra’s role in causing “significant financial losses for communities and investors” in Wyoming and “across the rest of the nation.”

He provided an example of Proterra’s failure in the public transit system serving Jackson, Wyoming. Referring to a September 2023 report by Cowboy State Daily, he noted that the local transit system had acquired eight electric buses from Proterra, but “none of the electric buses are running, and so the town’s transit system is relying on its diesel fleet.”

In May 2022, B.C. Transit also approved a $20 million contract to purchase 10 electric buses from Proterra. In a Nov. 9, 2023 claim filed against Proterra Operating Company, the provincial crown corporation is also seeking nearly $187,000 in damages for late delivery.

Months earlier, in August 2023, B.C. Transit stated that despite Proterra’s bankruptcy, its contract remained valid, anticipating the arrival of the vehicles in the fall of that year.

The Epoch Time reached out to B.C. Transit for comment but didn’t hear back.