Lubbock continues fight against $1.5 billion power deal - KCBD NewsChannel 11 Lubbock

Lubbock continues fight against $1.5 billion power deal

LUBBOCK, TX (KCBD) -

For the second time in two weeks, Lubbock attacks the validity of a $1.5 billion plan to provide its residents with electric power after March 31, 2019.  On that day, Xcel will, for the most part, no longer supply Lubbock Power & Light with wholesale electricity. 

In 1986, Lubbock, Brownfield, Floydada, and Tulia created the West Texas Municipal Power Authority.  In 2008, WTMPA created the High Plains Diversified Energy Corporation.

High Plains filed a petition in April asking the judge to declare that it could borrow up to $1.5 billion in the form of municipal bonds.  Such bonds are normally backed by the full faith and credit of taxpayers, although the bonds could also be structured to use power plants, for example, as collateral.

Lubbock's legal protest last week said, "High Plains' petition … omits critical information."  Lubbock does not want local taxpayers held responsible if anything goes wrong. 

Thursday, Lubbock fired another shot at the legality of High Plains' proposals.  In the second filing Lubbock says, "These proposed bonds are not authorized under Texas law."

Lubbock also says, "High Plains does not validly exist."

Who said High Plains could exist in the first place?  It was none other than former 237th District Judge Sam Medina, who is now Lubbock City Attorney.

Because of this potential conflict of interest, Lubbock hired outside counsel to handle the High Plains case. Medina can only watch from the sidelines as Lubbock challenges the very ruling he made back in 2008.

A Friday court hearing the case has been postponed.

Copyright 2011 KCBD NewsChannel 11. All rights reserved.

 

  • Local News on KCBD.comNewsMore>>

  • Recall: Death Wish Coffee's cold brew could cause botulism

    Recall: Death Wish Coffee's cold brew could cause botulism

    Thursday, September 21 2017 11:53 AM EDT2017-09-21 15:53:03 GMT
    Thursday, September 21 2017 11:56 AM EDT2017-09-21 15:56:53 GMT

    Death Wish Coffee Co. has recalled its 11 oz. cans of Nitro Cold Brew coffee because of concerns that its production process could breed botulin.

    Death Wish Coffee Co. has recalled its 11 oz. cans of Nitro Cold Brew coffee because of concerns that its production process could breed botulin.

  • Democrats want closer look at Price's private jet travel

    Democrats want closer look at Price's private jet travel

    Wednesday, September 20 2017 5:55 PM EDT2017-09-20 21:55:44 GMT
    Thursday, September 21 2017 11:45 AM EDT2017-09-21 15:45:36 GMT

    Health and Human Services Secretary Tom Price can't always fly commercial, spokeswoman says.

    Health and Human Services Secretary Tom Price can't always fly commercial, spokeswoman says.

  • A stunned Puerto Rico seeks to rebuild after Hurricane Maria

    A stunned Puerto Rico seeks to rebuild after Hurricane Maria

    Thursday, September 21 2017 3:46 AM EDT2017-09-21 07:46:11 GMT
    Thursday, September 21 2017 11:37 AM EDT2017-09-21 15:37:21 GMT

    Maria hit the island Wednesday morning as a Category 4 storm with 155 mph winds, the strongest hurricane to hit Puerto Rico in over 80 years.

    Maria hit the island Wednesday morning as a Category 4 storm with 155 mph winds, the strongest hurricane to hit Puerto Rico in over 80 years.

Powered by Frankly