Lubbock is setting the stage to sell an electric power plant on the city’s southeast side – with the City Council approving the use of a specialized law firm on Tuesday.
Lubbock Power and Light (LP&L) went out for bids on the Ty Cooke Station this summer, which is between the Slaton Highway (U.S. 84) and East 82nd Street. Bids closed on July 17 and public records revealed the prospective buyer was Adakon Energy Solutions. Nothing suggests it’s a done deal yet. The price was also not yet disclosed.
According to the bid documents, the site includes:
- 25 acres of land
- Four natural gas generation units (built from 1965 to 1978)
- Generation capacity of 137.1 megawatts
- An 8.63-inch natural gas pipeline
- A 230kV electric transmission line
- City water
- Current state and federal environmental permits
- Site can support ERCOT immediately and Southwest Power Pool with a little work
Lubbock is no longer in the power plant business since switching to the ERCOT power grid and opening Lubbock to competition among companies in the ERCOT market. LP&L only charges for the use of its wires (transmission and distribution) – mostly inside the city. LP&L constructed nearly 70 miles of transmission line outside the city to get ready for ERCOT.
The Electric Utility Board (the Lubbock Power and Light board) approved hiring the Latham & Watkins LLP law firm last week. But it also needed City Council action.
Information provided to the LP&L board said, “LP&L desires to engage Latham & Watkins, LLP on such matters because the attorneys have specialized expertise and are highly qualified.”
Matt Rose, spokesman for LP&L, said, “The sale of assets for Ty Cooke has been underway for several years. Given the complex nature of a transaction such as this, specialists have been brought in to assist in the process.”
An exact dollar figure was not listed, but instead a letter from the law firm said, “In general, our attorneys’ 2025 billing rates will range from $835 per hour to $2,850 per hour, depending upon the seniority and expertise of the attorney involved. For paralegal and other professional time, our 2025 rates will range from $305 to $1,550 per hour.”
What exactly will the law firm do?
“You have asked us to represent you in connection with sale of [a] power plant to Adakon Energy Solutions. The scope of work includes all aspects of the sale of the power plant, including, but not limited to, advice relating to real property, sale and purchase agreements, environmental issues, easements, rights of way, bonds, taxes, insurance, and any other aspect affecting the sale of the property,” the letter said.
LubbockLights.com reached out to Adakon by email and had not heard back yet by the time this article was published.
Rose said, “LP&L cannot discuss details of deliberations until negotiations have closed, and a decision has been finalized.”
Lubbock’s other power plant, Massengale, was not listed in the current set of public records.
“Massengale is not currently under consideration,” Rose said.
Massengale is decommissioned as a power plant and is not currently in use, Rose added.
One other note; Lubbock is willing to support “Black Start” status (subject to ERCOT approval). Power plants need electricity for things like water pumps to come online. Black Start means a power plant can start up on its own and provide electricity to other plants on ERCOT so they in turn can start up.
One big advantage of the Cooke Power Plant is its location. It’s already connected to ERCOT in Lubbock. But a short transmission line to Xcel Energy’s nearby Jones Power Plant would allow a connection to the Southwest Power Pool as well.
Public records indicated a final sale announcement is anticipated in October.
