West Texas Municipal Power Agency’s Tuesday board meeting was supposed to discuss a nearly $9 million demand for payment from Republic Power Partners. But the power agency’s attorney couldn’t get out of Dallas because of weather.
The meeting is rescheduled for Dec. 20.
West Texas Municipal Power Agency is a joint-power agency and municipal corporation of Lubbock, Floydada, Tulia and Brownfield. Republic sent the power agency and the city of Lubbock a demand letter Nov. 23, saying the entites owe money for costs incurred from a 2008 agreement.
In 2008, the power agency created High Plains Diversified Energy Corp. to find alternative energy sources. Republic Power formed a partnership with High Plains, and in August 2008, was tasked to raise private money to finance feasibility studies on various energy projects.
Nearly three years later, a judge ruled Texas law did not grant the power agency the authority to create the corporation, which sought low-interest debt for alternative energy production, meaning the project did not legally exist, and the corporation did not have the power to condemn land and issue public debt.
Now Republic Power is seeking $8.972 million for costs.
The Electric Utility Board met as scheduled Tuesday, and discussed the matter in a closed-door session.
Lubbock Power & Light attorney Matt Wade declined comment about the closed-door session, as did Lubbock Mayor Tom Martin, who was in attendance.
Martin said the matter remains between the power agency and Republic Power.
Lubbock City Council also is scheduled to discuss the demand for payment letter in its meeting today, and the discussion will be in a closed-door session.
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