Pharos-Tribune

Letters

May 25, 2014

PUBLIC FORUM: Letters for Sunday, May 25, 2014

(Continued)

An open letter to Logansport’s Utility Service Board Members regarding the new power plant proposal:

Do not adopt Mayor Ted Franklin’s Power Purchase Agreement because:

1. You are identified as the buyer in the PPA; the seller is not identified. Indiana law requires that the real seller, not some registered name, be identified. The statute of frauds requires that the seller, as “the party to be charged,” be identified. That is so you can learn such things as: Is the seller solvent? What assets does the seller own to back up his responsibilities under the contract? Is the seller committing his assets to back up his responsibilities, or is the seller limiting his risk by forming an LLC? Does the seller have experience generating electricity on a commercial scale? What is his track record?

Under French law, French businesses must be registered. An SARL is a French version of what we call LLC. The PPA identifies the seller with a French business address as “TCS Energy Group SARL.” However, my search of the Registre du Commerce et des Societes shows that there is no business entity registered under that name.

2. The PPA is founded upon an additional contract, the Development Agreement. If you agree to the PPA, you are also agreeing to parts of the DA. It is your job to study, discuss, and understand both, inter-related, documents.

3. You should not agree to a PPA which does not require the Seller to provide its Backup Delivery Plan until July of 2016. Do not agree, in advance, to a Backup Delivery Plan that you have not seen and may not like.

4. Do not agree to what you cannot see. The PPA’s Exhibit B is blank. Without such a “description of the facility” the Seller is not required to deliver any product.

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