The Logansport Utility Service Board voted in favor of conditional approval of a power purchase agreement Tuesday night with a developer proposing to build a power plant in the city.
Total Concept Solutions Logansport Energy Group LLC, headed up by a France-based company, is proposing to develop the plant. The privately funded facility is estimated to cost about $803 million and would set an initial electric rate of $5.3 cents per kilowatt-hour until 2021, when rates would rise in accordance with the Consumer Price Index — All Urban Consumers. It would be powered by natural gas with the possibility of taking on refuse-derived fuel capabilities in the future. The city and Logansport Municipal Utilities, or LMU, would receive a $1.75 million franchise fee and 4 percent of the plant’s gross sales for a minimum of $5 million per contract year.
The utility service board approved a resolution adopting the agreement unanimously.
Concerns were raised at public meetings preceding the vote regarding the development agreement for the plant, which will set the terms between the city and TCS as to how big the plant will ultimately be and set milestones for construction. Those concerned said it would be difficult to approve the power purchase agreement without first being able to study the development agreement, which has yet to be completed.
Brian Bosma, an attorney with Indianapolis-based Kroger Gardis & Regas LLP, was the principal drafter of the agreement the board conditionally approved Tuesday.
Speaking before the board, Bosma reminded those present that board members’ approval of the power purchase agreement was conditional upon approval of the power purchase agreement and development agreement by Logansport City Council and the receipt of the franchise fee. The utility service board will vote on the development agreement after city council.
“You really get another bite at the apple,” Bosma told board members.