Aquila Deducts Cost of Legal Fight from Payment to Peculiar

1 decade 10 months 2 weeks ago Friday, January 26 2007 Jan 26, 2007 Friday, January 26, 2007 2:03:32 PM CST January 26, 2007 in News
Source: (Copyright 2007 The Associated Press All Rights Reserved.)
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HARRISONVILLE (AP) - Aquila officials and the mayor of a small town in western Missouri are meeting today to discuss yet another dispute. The utility is withholding the legal expenses from its annual payment to public agencies in the town of Peculiar in lieu of taxes. The flap comes as Kansas City-based Aquila is locked in a court battle over the fate of a power plant it built in Cass County. It says the deduction is clearly permitted under its 2004 contract with Peculiar, which built the plant with Aquila. Local officials say they were caught off-guard when Aquila's 2006 payment in lieu of taxes came in $175,000 less than expected. They worry that local agencies wrote their budgets for this year expecting the higher payment. The quarrel is the latest chapter for Aquila's $140 million South Harper plant, which the company built in Peculiar without getting zoning approval. Cass County sued, and a judge has ordered that the plant be dismantled. The case now appears headed to the Missouri Supreme Court.

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