POWER PLANT FRANCHISE FEE DEADLINE PASSES

Yesterday was the deadline for the City of Logansport to receive a $1.75 million check from TCS Logansport Energy Group LLC. The City Council and Utility Service Board met in executive session at noon. In a press release e-mailed just before 5 p.m., Mayor Ted Franklin said negotiations with TCS Logansport Energy Group had not resulted in an agreement. Franklin says he still wants to find a way to pursue a public private partnership to finance a project that will generate electricity at a rate of less than 5.5 cents per KWH through the use of pellets made from refuse-derived fuel. He says four private sector providers have expressed an interest in exploring some options.

One option Franklin outlined in the press release is repowering the existing generating plant and expanding its capacity to 120 MW using renewable fuel -- he says it would be a partnering effort by two of the firms that originally responded to the city’s request for proposals issued in late 2012. Another option is to repower the plant to 120 MW using co-generation, or to repower it using renewable fuels, with research and development provided by established state universities. Another option Franklin listed is purchasing wholesale electricity under long-term electric rate agreements. He says the city and LMU will continue to evaluate all proposals and it’s expected that negotiations would be completed within 90 to 120 days. Community input would then commence, with final approval or decisions by the Utility Service Board and Logansport City Council. Then, the project would transition to preliminary design, environmental reviews and permit approvals from the Indiana Department of Environmental Management.

According to the mayor, the existing electric generating facility on Race Street must be closed no later than January 31, 2016 as a result of EPA mandates, and the facility is scheduled to be closed this October. The city is currently under contract to purchase its electric supply requirements from Duke Energy through December 31, 2018 and has until the end of 2016 to provide Duke with notice of future intent with regard to electric supply requirements.

A previous agreement with Pyrolyzer LLC fell through early last year and the city signed a letter of intent with TCS Logansport Energy Group in January 2014. Last summer, the city council and utility service board approved development agreements and purchase power agreements with TCS Logansport Energy Group LLC, but said the documents were contingent upon receiving the $1.75 million franchise fee.

City officials had continually reassured the public that receipt of the franchise fee would recoup the funds the city council had allocated to pay consultants to pursue the project. The Logansport City Council meets Monday, April 6 at 5 p.m. in the city council chambers on the third floor of the Logansport City Building.