The company that had originally been tapped to develop Logansport’s new power plant briefly reentered the picture Tuesday night when its president and general manager criticized his former financial partner and the city’s new developer at a utility service board meeting.
The Logansport Utility Service Board voted unanimously in favor of conditionally approving a power purchase agreement at its monthly meeting Tuesday night with Total Concept Solutions Logansport Energy Group LLC, headed up by a France-based company. Often referred to as TCS, the company is proposing to build the privately funded $803 million plant that would set an initial 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 proposal is being explored as a solution to Logansport Municipal Utilities’ rate stabilization initiative, whose hurdles include expensive overhauls that would be necessary for its coal plant expected from upcoming U.S. Environmental Protection Agency regulations.
LMU currently receives about 70 percent of its power from Duke Energy and generates the remaining 30 percent from its coal plant on Race Street in Logansport. For the first three months of 2014, LMU paid an all-in cost of 7.55 cents per kilowatt-hour from Duke Energy.
Up until December 2013, Logansport Mayor Ted Franklin had been negotiating with Pyrolyzer, LLC out of Boca Raton, Fla., to develop a plant powered by refuse-derived fuel with a natural gas backup. After Pyrolyzer was unable to finalize its internal structure agreements with its financial partner, TCS, Logansport City Council expanded Franklin’s negotiating authority, which he used to move forward solely with TCS.
Frank Canterbury, president and general manager of Pyrolyzer, attended Tuesday’s utility service board meeting, where he said TCS never attended meetings on agreements that were being negotiated, never provided any development funds, demanded exclusive rights to Pyrolyzer’s technology in the U.S. and never showed proof of being able to help fund the project.