A group of Texas business leaders Wednesday
announced they have secured funding to begin Phase 1 of a
planned $10 billion energy project in West Texas.
The investors in Republic Power Partners, LP, in their partnership with the West Texas
Municipal Power Agency (WTMPA) cities of Lubbock, Brownfield, Floydada and Tulia, and
Texas Tech University have committed $40 million to conduct necessary feasibility studies for
the generation of 4,000-6,000 megawatt (MW) of electricity.
The group says the project will generate electrical power from renewable resources such as wind, solar and biomass, as well as natural gas and so-called "clean" coal.
If fully developed, the project would likely be the largest public-private partnership of its kind in the U.S.
The Phase 1 analyses will also assess the transmission systems required for a balanced,
consistent source of electricity to the WMTPA communities as well as to provide the required
environmental, preliminary engineering and design work.
”The High Plains is quickly becoming a world leader in adopting diversified energy programs
that address the energy, environmental and economic challenges facing cities across West Texas
and the Lone Star State,” said Republic Power Partners President and Manager John Crew.
“With this adequate funding, we now have the ability to aggressively develop a broad portfolio
of generation to help our partner cities directly meet these challenges.”
A special purpose entity, known as the High Plains Diversified Energy Corp. (HPDEC), has been
formed by the WTMPA to operate the project. HPDEC hopes to sell any surplus electricity
generated to new customers located in the Electric Reliability Council of Texas (ERCOT), which
controls 85% of the state’s electric power load.
Texas Tech University will supply expertise and guidance to the project through its
Wind Science and Engineering Research Center. As compensation, the university will share in
the net revenues from the project.
According to HPDEC Chairman Scott Collier, construction of energy generation and
transmission lines will be financed by revenue bonds. The debt associated with those bonds will
be repaid with revenue generated by the project. Neither WTMPA ratepayers nor taxpayers will
be responsible for any construction or operational costs, the group said.
“West Texas citizens deserve to be excited and we hope they remain supportive and patient as
the project moves full steam ahead,” Collier said.
Lubbock businessman David Alderson, who began working on the initiative two years ago as a
West Texas economic development official and currently serves on Republic Power’s board of
directors, said the project is expected to create thousands of construction and maintenance jobs
and will help establish the High Plains of Texas as a world leader in the production of diversified
energy technologies.
“Wind energy is becoming a powerful source of green jobs in West Texas. With this project,
other diversified energy technologies will generate an even more powerful source of employment
for West Texans in the near future,” Alderson said.
Many of the nation’s leading engineering and construction companies are expected to compete to
build the project.
The feasibility studies will determine the actual timeline for completion of the various phases of
the project. Electricity could be generated as early as 2012, the group said.
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