Skip to comments.Republic Power files $8.9 million lawsuit against Lubbock (Texas)
Posted on 03/06/2012 7:00:17 PM PST by Army Air Corps
LUBBOCK, TX (KCBD) - The City of Lubbock received official word on Tuesday morning that it is being sued for more than $8.9 million by a company called Republic Power.
In a sense, the story begins in 1983 when Lubbock, Brownfield, Floydada and Tulia created the West Texas Municipal Power Agency. WTMPA buys wholesale power on behalf of the cities.
Republic Power says starting in 2008, it had a partnership with WTMPA to purchase two power plants in Odessa. It goes on to say the City of Lubbock had a 92% majority interest in WTMPA and could have objected at the time of the partnership. Instead, it says the City of Lubbock waited for a bond validation hearing last year when Republic had invested nearly $9 million into the deal.
In the bond validation hearing, the City argued that its own entity, WTMPA, had no authority to take on taxpayer debt in the deal so a judge killed it.
The lawsuit says, "WTMPA expressly represented and warranted that it had all the requisite power and legal authority to enter into the Development Agreement..."
Republic says it's out millions of dollars and the City of Lubbock and/or WTMPA should pay.
Although the City has not filed its side of the story in court records, Mayor Tom Martin says, "We consider this lawsuit to be totally frivolous, and we expect to win the case."
City has retained the law firm of Vinson and Elkins.
Copyright 2012 KCBD. All rights reserved.
Personally, having lived under a muni power district, I find them to be an abomination.
They cheat. There is no level playing field, and the taxpayer (and rate-payer) is always there to pick up the pieces when they screw up.
I would LOVE to be under a municipal power district. My parents live in a town with a Board of Public Utilities and their bill is RIDICULOUSLY cheap compared to what I pay under the free market.
Seriously, even in 100 degree temps, they rarely have a bill for utilities combined over 80 bucks a month. Most often it is around 40 bucks. Meanwhile, just on electricity we spend twice that in the hot months.
Maybe I am talking about something that’s different...is a board of public utilities the same thing as a municipal power district?
I will say this, LP&L does operate more like a joint stock company wherein the customers are shareholders. We also receive rebates when power generation costs drop during a billing cycle.