State District Judge Shuts Down $1.5 Billion Regional Power Deal, Says Corporation Was Improperly Formed
A judge has shut down plans for a power deal in Lubbock worth over 1.5 billion dollars.
State District Judge John Board ruled that the High Plains Diversified Energy Corporation would not be allowed to seek the 1.5 billion dollars in financing needed to purchase two power plants in Odessa.
Judge Board said that the agency was not properly formed by the city’s governments, but rather by the West Texas Municipal Power Agency, which was created by Brownfield, Floydada, Lubbock, and Tulia, rendering them unable to apply for bonds which would be repaid by taxpayers.
The City of Lubbock opposed the power deal. The contract with Xcel Energy to continue selling power to the West Texas Municipal Power Agency expires in 2019.