IBJNews

Indiana senator seeks gas plant contract review

Back to TopCommentsE-mailPrintBookmark and Share

Indiana Senate President Pro Tem David Long said Thursday the state needs to review its plans to buy synthesized natural gas from a $2.8 billion plant slated for construction in Rockport.

The Fort Wayne Republican said "the world has changed" since lawmakers first approved a plan that guarantees Indiana Gasification LLC has a buyer for its product over the next 30 years — a prospect that looked good a few years ago when natural gas prices were high but has caused some lawmakers to second-guess that deal with an infusion of new gas on the market because of increased fracking.

"Obviously, just the fact the world has changed since this idea came into being requires us to take another look at it," Long said, calling for either the regulators on the Indiana Utility Regulatory Commission or state lawmakers to review the deal.

He stopped short of saying it should be revoked.

"I'm not willing to say that just yet, but I think we all have questions given the price of natural gas is so much lower now due to the fracking and everything 's that's going on around the country," he said. "What looked like it had a real potential when the price of gas was so much higher, now we have to bring the question whether it makes sense."

The statements from Long and others seeking to review the deal has placed Indiana Gasification on the defensive in a continuing battle with the southern Indiana utility Vectren, which has argued the project would cost Indiana ratepayers more than $1 billion because of a spike in rates from the more expensive synthetic natural gas.

"If the Legislature has read the IURC order, which covers shale gas comprehensively, and feels there is a reason to renege on the process they established, it will be viewed as a very negative sign," said Indiana Gasification project manager Mark Lubbers, referring to the IURC's prior approval of the deal. The state's Court of Appeals overturned that approval last year, sending the issue back to the Legislature and the IURC.

"We have trusted that the state was good for their word," Lubber said. "This isn't a game; we would be investing $750 million of our money and borrowing another $1.9 billion we will be obligated to repay. We regarded Indiana as a stable committed partner. Being so easily frightened into second guessing is not the kind of thing you want to see when you are investing nearly $3 billion."

Sen. Doug Eckerty, R-Yorktown, has introduced legislation that would restructure a 30-year contract agreed to between the Indiana Finance Authority and Indiana Gasification. House Speaker Brian Bosma, R-Indianapolis, said Thursday he supports reviewing the deal.

ADVERTISEMENT

  • Whoosiers
    1. Puff out chest. 2. Act like you care. 3. See name in paper. 4. Accept kickback. 5. Repeat ad infinitum. Yes, all is well in Hoosierhell.
  • Don't beleive every thing Vectren tells you
    Vectren has been against this gas plant from the beginning. They have done every thing thing they can to prevent this plant from being built. But Vectren has done nothing to keep the price of gas down,in gact they have made some very bad business decision that have kept the prices high. Vectren is not in favor of jobs an low prices they only want what is good for them. They have politiced every politician in Indiana an now that Mitch is gone the Rebublicans are going to take those donations and do what Vectren wants them to do.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Good Day I am Mr (Victoria Wright) from United state of America, i stayed in NEW YORK, and i have a broke up business, until i found this company email who help me to gain a loan for business,, and now i want to used this short medium to congratulate the below company for the fast and safe money they loan to me without any form of collateral, i loan 500,000USD from the company to save my business and lots more, i saw their mail on the internet, everyone always give testimony for what they did, so i quickly contacted them and they all did everything for me without stress and my money was sent to my account just 3 days later, i was surprise and i feel so glad, now i have a standard business control agent who help me, now i will advice those who need urgent loan to contact him at the bellow email:zenithfirm12@gmail.com

  2. NOTICE:This is to inform the general public that Vampires are real. My name is James Franklyn.,am an agent of vampire,am here to introduce our new world trend to you,a world of vampire where life get easier,we have made so many persons vampires and have turned them rich,you will be assured long life and prosperity,you shall be made to be very sensitive to mental alertness,stronger and also very fast,you will not be restricted to walking at night only even at the very middle of broad day light you will be made to walk.In case you are wildly oppressed by some unscrupulous persons we can still help you fight them.Your protection is assured immediately you join.Just contact the bellow email if you are interested we are here to attend to you anytime you want us. Contact the bellow email for more details. Email:vampirescreed@hotmail.com Sincerely: James Franklyn.

  3. Bravo! Someone else that is willing to speak the truth! Bravo!_____NBCSN is available in almost 2 MILLION more homes than just a few years ago, but Indycar STILL gets less total viewers than it did just a few years ago when NBC took over Versus. Attendance and ratings cratered with the end of season races (just when the title battle got "interesting" HAH!__________And now...new race in Basilia, where Miles celebrated the "rich history" of Indycar racing there. Rich history? What, 7 events in the 100 years of AOW? Yep, some history. Well, at least its an oval. It's not??? Are you kidding me??? Gosh darn road racin furriners.

  4. PURITY RAY LOAN OFFER........ Have you been denied by your banks,or are you in need of of an urgent loan to pay of your bills we are capable of giving loans @ cheaper rate to interested individuals, student, companies and members of the public in need of finance to settle bills, we do offer considerable loans which you can count on. For more information on our various types of loan,then you will have to contact PURITY RAY LOAN FIRM, to help you achieve your desire LOAN APPLICATION FORM TO BE FILLED BORROWERS INFORMATION * Full name:………………………. * SEX * ……………………………. * Country………………………….. * State:……………………………. * Land:…………………………….. * Occupation:…………………….. * phone number:…………………. * Telephone: ………………………….. * Age:………………………………. * Amount needed as loan:……… * Loan Duration:………………….. * Propose of Loan:……………….. * Annual revenue:………………… * Monthly Income:……………….. * Guarantee:………………………. * Payment: monthly or annually Email.....purityrayloanfirm@gmail.com Thank you and God bless Mr Purity Ray PURITY RAY LOAN FIRM we tend to serve you better

  5. Problem: most of the people responding to this article don't know about this service AT ALL! Why? Lack of awareness. This isn't IndyGo. This is CIRTA: might as well be the mattress company because they are asleep at the wheel - something like 3 directors over the last year? Playing with federal grant money is great! This "region" wants commuter rail service, has spent MILLIONS on Transportation studies yet can't even support a commuter bus line? This is largely for suburban riders to get to downtown - not for "service people to work in our hotels and restaurants" ! Get your head out of your backside!! These are professionals, students etc. that don't want to fight traffic, save some money on parking, gas, stress.... if CIRTA would put their federal money into widely promoting the sevive to Greenwood, Fishers & Carmel instead of finding directors and studies - this would be a successful service. Our family uses(d) it daily for the last several years - but the recent uncertainty & now unreliability due to cuts from Carmel has been a problem. Now, costs us an additional $350/month for gas & parking ( $4200/year) plus vehicle wear, service, environmental impact ... YES - this REGION needs this this type of service in order to keep growing and getting the people it needs to fill skilled positions in downtown Indianapolis. Think outside of your own car !!!

ADVERTISEMENT