Hunter
01/30/23
The private companies that are running the University of Iowa power plant as part of a 50-year agreement are now suing the university, alleging breach of contract.
The Press-Citizen reports that the deal initially included a $1.2 billion upfront payment to the University, with the UI paying the newly-formed University of Iowa Energy Collaborative $35 million annually for the first five years, with more in subsequent years.
Among the allegations in the suit are that the UI has refused to make payments, rescinded approvals for repairs to the system that it had committed to, and failed to file insurance claims for damage to the plant.
The Press-Citizen also reports that among the fees the lawsuit says the University refused to pay includes a $1.5 million compensation package for the CEO and CFO, company administrative and overhead costs, and the cost to the company of maintaining its investment-grade credit rating.
One of the most costly repairs is the overhauling of a utility system turbine, which was in bad repair due to what the lawsuit says was inadequate maintenance on the part of the University. The UI reportedly committed to the repair costs, which is estimated at $2.5 million, but has not approved any change orders for the project.
The suit seeks unspecified damages and asks the court to require the University of Iowa to follow its contractual obligations in the future.