The Logansport City Council moved to terminate negotiations with TCS Logansport Energy Group LLC on Monday night after that company failed to provide the city with a $1.75 million franchise fee by March 31.
According to a press release, the new project will be a public-private partnership where financing of the project will be through private sector firms, including all development and construction costs. The Logansport Generating Plant would be acquired by SGP Energy Logansport, LLC. LMU employees would continue to operate the facility under a Management, Operation and Maintenance Agreement. The Generating Plant grounds would be leased from the City of Logansport on a long-term basis. The primary fuel source for the Generating Plant will be a clean burning renewable pelletized fuel identified by SGP Energy that they say is already in use in similar facilities in the United States.
An Acquisition and Development Fee of $1,750,000 will be placed in an escrow account within 30 days.
The existing Generating Plant capacity of 38.5 MW will be retrofitted to accept the renewable fuel pellets with the approval of IDEM and EPA, allowing the facility to continue to operate in compliance with current environmental emission regulations at least through January 2017. A second phase would increase capacity to 120 MW, continuing to use the renewable fuel pellets. According to the press release, these two phases are expected to result in a private investment of over $120 million dollars.
The press release states that all negotiations and agreements are expected to be completed by the end of June 2015, then community input is expected to begin.
The existing Race Street facility is scheduled to be retired in October of 2015 due to EPA mandates. 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.
An Acquisition and Development Fee of $1,750,000 will be placed in an escrow account within 30 days.
The existing Generating Plant capacity of 38.5 MW will be retrofitted to accept the renewable fuel pellets with the approval of IDEM and EPA, allowing the facility to continue to operate in compliance with current environmental emission regulations at least through January 2017. A second phase would increase capacity to 120 MW, continuing to use the renewable fuel pellets. According to the press release, these two phases are expected to result in a private investment of over $120 million dollars.
The press release states that all negotiations and agreements are expected to be completed by the end of June 2015, then community input is expected to begin.
The existing Race Street facility is scheduled to be retired in October of 2015 due to EPA mandates. 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.
