Published: May 09, 2009 10:41 pm      

Strategic plan gives LMU direction

It should guide utility for next five to six years

Facing tougher federal regulations, aging infrastructure and outdated technologies, Logansport Municipal Utilities recently adopted a strategic plan that administrators hope will play a significant role in outlining the utility’s future.

Superintendent Paul Hartman said the plan is intended to keep LMU competitive and at the forefront of changes in the utility industry over the next five to six years.

The plan, compiled by LMU management and staff, identifies the utility’s key strengths and weaknesses as well as threats and opportunities. It notes a series of strategies, goals and objectives to address issues in each department in order, Hartman said, for the utility to have a clear understanding of the path it needs to follow.

“Essentially in any utility that we have, whether it is water, wastewater, electric, storm water, whatever it is, there are problems that limit us to be efficient in our operation,” Hartman said. “Whatever those problems are, what we are saying here is to look at those, investigate them, try to be as efficient as we can and try not to spend as much budget monies as possible. As far as specifically what those are, we will identify those as we go along. “

The document lists goals for each of the utility’s services — from electrical distribution and the generating plant, to water, wastewater, finances and human resources — and recommendations for already identified upgrades. These include fiber optic electrical distribution system, updating and improving the wastewater treatment plant and expanding fuel options for the coal powered plant.

Hartman said he understands the utility can no longer rely on coal as its sole fuel source given tightening federal regulations on emissions levels and growing pressure for more of the plant’s energy to be derived from renewable fuels.

The plant’s switch to a new underthrow dispensing system will enable experiments with alternative fuel sources such as corn cobs and bio solids, he noted.

“The only way we can move away from coal is to change the way we distribute coal in our boilers,” Hartman said. “So we moved to the underthrows which allows us to spread the coal higher in a furnace and possibly burn a biomass. If nothing else it allows us to burn a cheaper grade of coal so it is going to pay for itself, but if we can burn a biomass, that’s an added benefit.”

John Davis, president of LMU’s Utility Service Board, said the plan is the result of LMU’s recognition that, as a business, it had to do more to remain a competitive force in the local market.

“As the government tightens the parameters under which utilities operate and as competition gets tighter for small utility operations under pressure from large utilities like Duke, we have to really have our direction set and our components all in a row,” Davis said. “It is for the benefit of the citizens of Logansport that we stay competitive.”

Other priorities include expanding LMU’s business customer base through closely working with the economic development foundation and establishing long-term cost saving contracts with fuel providers and wholesale power producers like Duke.

Hartman said Duke remains reliant on LMU to provide power during peak months and is only likely to invest in improvements at LMU’s plant if its proposed use of renewable energy will benefit Duke’s own operations.

Instead LMU will look to fund the changes with money from its own budget and any grants that are available. Hartman said LMU will be aggressive in securing the funding it needs.

“If the funds are there we will be pushing people aside to get them,” he said.

Hartman added the strength of LMU remains the dedication of the utility’s employees emphasized by the service provided during emergency situations and outages. In order to remain competitive, though, he said retaining a well trained work force is a top priority for LMU.

With this in mind, the strategic plan includes provisions to utilize the opportunities provided at the new Ivy Tech campus once it opens next year.

“Any time any business can obtain a well educated employee at least with the basics of computer knowledge it is always going to make for a better organization,” Hartman said. “Ivy Tech is going to be a great opportunity for this city.”

As LMU strives to meet these objectives over the next few years the plan will remain a key guiding document. As well as regular reports to the board, Hartman said the plan will be reviewed and updated regularly and is also likely to be extended beyond 2015.

By possessing the document, he said it is easier for LMU to see whether it is meeting its own goals as the years go.

“We’ve already got our own report card,” Hartman said. “We’ll see how we do.”

Kevin Smith is a staff writer at the Pharos-Tribune. He can be reached at (574) 732-5148, or kevin.smith@pharostribune.com