Last Updated on July 21, 2016 by cassnetwork
LMU currently purchases the electricity it sells to its customers from Duke Energy, under a contract that began in 2009 and runs through Dec. 31, 2018.
The contract requires that LMU notify Duke by Dec. 31, 2016 if they do not plan to extend that contract beyond 2018.
On March 4, LMU sent a “submission framework” to interested parties and they had until March 15 to reply. The Indianapolis firm of Lewis & Kappes was hired to review and evaluate six submissions that were received.
The Logansport City Council and Utility Service Board have met in executive session (an advertised meeting permitted under Indiana law that is not open to the public) to discuss the submissions.
At last month’s Utility Service Board meeting, Lewis and Kappes gave a non-binding recommendation that the USB choose to move forward by entering into negotiations with NextEra Power Marketing Group. The other two submissions deemed viable were from IMPA and Duke Energy.
Those involved in the discussions, including the mayor, city council and utility service board members, have signed confidentiality agreements regarding the proposals.
Representatives from IMPA and Duke Energy were invited to speak at a public meeting at McHale Performing Arts Center earlier this year. The Utility Service Board wanted to give NextEra Energy Power Marketing the same opportunity, so a meeting was held July 20, 2016 at the McHale Complex at Riverside Park.
About 60 people, including city council representatives and utility service board members, attended the meeting, which was moderated by Logansport-Cass County Chamber of Commerce executive director Bill Cuppy.
NextEra Energy Power Marketing serves 70 public power customers in the U.S., including Ferdinand, Ind., which became a customer in 2014 and extended its contract for two years last month. Last night’s presentation included information on NextEra Energy Power Marketing, NextEra Energy Resources and Florida Power and Light.
NextEra Energy Resources has electric generation capacity within 25 states and Canada, and, according to its website, is the world’s largest generator of renewable energy from wind and sun. Their other fuel sources include natural gas, nuclear and oil, but about 95 percent of their electricity comes from clean or renewable sources, according to their website.
The term of NextEra Energy’s contract with Logansport would be 2019-2023. Duke Energy would continue to provide 100 percent of the energy LMU sells to its customers under the current contract that runs through 2018.
City officials and consultants say NextEra energy offered the most competitive price and also offers LMU the opportunity to pursue generating its own electricity. They also like the length of the contract.
The next step is for LMU to choose a vendor and begin negotiating a power purchase agreement that will set the price at which LMU will buy the electricity and other terms.
Lewis and Kappes has recommended NextEra Energy Power Marketing but board members can also consider the other viable submissions, such as those from Duke and IMPA.
Attorney Jim Brugh, who described himself as hired by the City of Logansport’s department of law and assigned to the Utility Service Board, said he recommended that the City Council draft a resolution to give notice now to the current provider that they are “shopping around.”
The city has entered into a contract with another consultant, McCullough Research, for its own evaluation of the proposals.
Some in attendance questioned the transparency of the process, while others indicated that elected officials, who represent the public, had been included.
Entering into a power purchase agreement will not add any additional jobs. LMU will simply be purchasing the electricity from a vendor, as it currently does, and LMU will continue to distribute the electricity to its customers and will continue to be responsible for serving power lines and addressing outages.
The Utility Service Board meets at 7 p.m. Tuesday, July 26 in the LMU Board Room on the 3rd floor of the Logansport City Building. The meeting is open to the public.