By Marty Mayfield
KRTN Multi-Media
After almost two years Raton Public Service and Twin Eagle Resource Management, LLC have reached an agreement after RPS filed a lawsuit back in February 2019 claiming breach of contract and interference with prospective contractual relations.
RPS had entered into a power sales agreement with Enserco Energy, Inc. in October 2011 to purchase power until January 2023. According to the power sales agreement neither party shall assign this agreement in whole or in part, without the prior written consent of the other party, which consent shall not be unreasonably withheld, conditioned or delayed. In July 2013 Enserco assigned their portion of the power sales agreement to Twin Eagle. At that point RPS began purchasing power through Twin Eagle.
RPS then began negotiations with Guzman Energy, LLC to purchase power. Guzman had agreed to assume the RPS part of the power sales agreement, thus selling power to Raton. At this point Twin Eagle objected and failed to grant that consent, thus creating a breach of contract as set forth in the power sales agreement allowing Raton to assign their part of the power sales agreement to a third party in this case Guzman Energy.
In the lawsuit RPS alleged that Twin Eagle had interfered with the negotiations between Guzman and RPS and that Twin Eagle had denied RPS consent to assign their portion of the power sales agreement to Guzman Energy.
The two entities have been engaged in mediation sessions to try and reach an agreement. According to court records filed on January 22, 2021 a settlement has been reached. Kathy McQuery, RPS Board President, said the settlement will terminate the power sales agreement and allow RPS to move forward with looking for another power provider.
RPS Board of Directors and the Raton City Commission met on Wednesday January 27, 2021 to approve the settlement, the final step to dismissing the court case. Now that the settlement has been approved by the commission RPS will move forward with an RFP to purchase power from another provider.
