In a press release issued late yesterday afternoon, Logansport Mayor Ted Franklin says a solution to Logansport’s long-term electric generation has finally been resolved. The wording in the press release is similar to one Franklin issued in April when he announced that the city was negotiating with S.G. Preston Company.
Franklin said in April that SGP Energy Logansport LLC would lease the current electric generating plant and retrofit it to accept renewable fuel pellets, allowing it to operate through at least January 2017. In April, Franklin announced a two-phase project -- yesterday, he outlined three phases. He says the second phase will progress to a natural gas component. According to Franklin, these two phases will provide enough generation to supply Logansport its full power requirements, at least 100 MW. The final phase will utilize renewable pelletized fuel in a new facility.
Franklin said in both news releases that the Logansport Generating Plant will continue to employ LMU employees under a third party Operation and Maintenance agreement, retaining and expanding the current number of jobs at the existing Logansport Generating Plant and all project generation facilities.
R. Delbert LeTang, CEO of SG Preston Company, says a “best in class group of partners has been assembled” -- from premier engineering firms to an industry leading operations and maintenance provider to a global group leading financing partners.”
In April, Franklin said he hoped to conclude negotiations in June and commence community input. Once approved by the Utility Service Board and Logansport City Council, the project would transition to preliminary design, environmental reviews, and approvals from the various governmental entities regulating the public power industry, throughout calendar year 2016. An executive session of the LMU Utility Service Board is set for 9 a.m. October 13, with a special meeting at 10 a.m. that morning.
In April, Franklin said the City of Logansport is currently under contract to purchase its electric supply requirements from Duke Energy through December 31, 2018, and is not required to provide notice of future intent with regard to electric supply requirements until December 31, 2016.
Copies of documents related to the project were not immediately available, and yesterday’s release makes no reference to a $1.75 million acquisition and development fee announced in April that was to be placed in an escrow account for the city within 30 days,
This is S.G. Preston’s second proposed project in Logansport. In December, the Logansport city council approved a $550,000 forgivable loan for the company for a $400 million facility that would produce bio-diesel.
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