Company sued Lubbock, WTMPA but still looking to make deal - KCBD NewsChannel 11 Lubbock

Company sued Lubbock, WTMPA but still looking to make deal

LUBBOCK, TX (KCBD) -

Despite a $9 million lawsuit against a local government agency, a company called Republic Power still wants to do business with Lubbock and surrounding cities.  The company issued a public statement Tuesday morning.

The company filed a lawsuit against the West Texas Municipal Power Agency and the City of Lubbock earlier this year.  A judge dismissed Lubbock as a defendant but Lubbock is still not off the hook.  That's because Lubbock is part owner of the WTMPA along with Brownfield, Floydada and Tulia. A judge would not dismiss WTMPA, so the case is now headed to an appeals court in Amarillo.

Lubbock was sued in part because it intervened in court to stop the deal between WTMPA and Republic Power.  Lubbock argued successfully that WTMPA did not have the authority to borrow $1.5 billion backed ultimately by the taxpayers of the four cities. 

After the ruling the deal for Republic Power to buy two power generation plants in Odessa fell apart. 

"Costs totaling $9 million would not have been incurred had Republic Power known that the WTMPA did not have the power and authority to fulfill its contractual obligations, or that the city of Lubbock would take judicial action to ‘kill' the Development Agreement," said company attorney John Hubble.

"Republic Power remains committed to the lawsuit," according to the written statement.  But that is by no means the end of the story.

Lubbock and the other WTMPA cities face a critical shortage of electric power in 2019.  That's when Xcel Energy will, for the most part, stop selling wholesale power to the WTMPA. 

Republic's written statement also says, "Company officials believe it is important to continue discussions with WTMPA officials about the development of alternative sources of electric power for the region."

KCBD NewsChannel 11 has asked the City of Lubbock for a statement.  The City is typically reluctant to talk about pending lawsuits but if a statement is made, look for an update on KCBD.com

Copyright 2012 KCBD. All rights reserved.

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