Republic Power files $8.9 million lawsuit against Lubbock - KCBD NewsChannel 11 Lubbock

Republic Power files $8.9 million lawsuit against Lubbock

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.

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