Last Updated on August 9, 2016 by cassnetwork
Proposals from all three finalists vying for the Logansport Municipal Utilities power contract will be reviewed to ensure that any oversights are prevented, Mayor Dave Kitchell said Tuesday.
Kitchell has asked Robert McCullough, a city consultant hired to perform oversight analysis for LMU, to determine if the proposals submitted by Next Era, Duke and the Indiana Municipal Power Agency have been accurately evaluated. Logansport City Council members voted unanimously last week to proceed with negotiations with Next Era. But McCullough has advised that several questions need to be answered before an agreement is reached.
“The indicative offers are a reasonable start to the process, but not a sufficient basis for selecting a single finalist at this time,” McCullough said in a report to the city late last month. “Additional information needs to be provided to the three counterparties reflecting actual electric loads. The information should also include a reasonable load forecast of future loads.”
The recommendation to go with Next Era was not binding, and McCullough says a final decision will be beneficial if all three power entities submit binding offers simultaneously with a set decision deadline. He said the timing of the LMU generating plant’s closure earlier this year is good for Logansport.
“Falling oil and natural gas prices have changed the entire energy landscape. Simultaneously, renewables – especially wind and solar – have become competitive options. This is a good time to be in the market.”
SOURCE: News release from Logansport Mayor Dave Kitchell