Logansport City Council 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 firm and often referred to as TCS, 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.
Logansport Municipal Utilities, or 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.
Council members approved on the first of two readings an ordinance ratifying and confirming the power purchase agreement 5-2, with Jeremy Ashcraft and Chuck LaDow dissenting.
Moving the project forward is conditional upon city council and the utility service board’s approval of a development agreement, which will set terms between the city and TCS as to how big the plant will ultimately be and set milestones for construction. It is also dependent on the receipt of a $1.75-million franchise fee from TCS.
The Logansport Utility Service Board voted unanimously in favor of conditionally approving the agreement last week.
Logansport City Councilman Bob Bishop expressed his support for the project as a solution to the plan proposed by the Obama administration earlier this week to cut carbon dioxide emissions from existing power plants 30 percent by 2030.
Bishop added the plant sets out to lower electric rates, retain LMU jobs, add new jobs and increase the total assessed value and tax base of the city.