LOGANSPORT, Indiana — A northern Indiana city council has approved a development agreement for a proposed $800 million power plant despite some doubts remaining over the project's financing.
The Logansport City Council voted unanimously Thursday night to approve the deal with an affiliate of French company Total Concept Solutions.
The agreement includes the company selling electricity from the natural gas-powered plant to the city's utilities department for less than what it now pays Duke Energy.
Councilman Chuck LaDow, who had voted against previous agreements with the company, said he is still worried about the lack of information about the project's financing but decided the agreement would be good for the city.
"I don't know who the financiers are," he told WLFI-TV. "That's an awfully big check to write."
The first phase of the plant would have generating capacity of 300 to 500 megawatts of electricity, the Pharos-Tribune reported. The agreement calls for up to 150 megawatts being available to the 18,000-person city, or about double what its utility department buys from Duke or generates from its smaller coal-fired power plant.
The developer faces a March 31 deadline to submit a $1.75 million franchise fee to the city about 40 miles northeast of Lafayette.
City Council President Joe Buck said that step will show the project's viability.
"I believe we'll get that check," he told WLFI. "When we do get that check, maybe some of our detractors will be stymied."
Republican Indiana House Speaker Brian Bosma, who is an attorney for the plant developer, told council members in June that financing details would be settled after the project's development agreement with the city was completed
LaDow said if the developer can achieve what it is setting out to do, it would be "something that would take Logansport into the 21st century and beyond."