Indianapolis airport power contract up for bid

August 11, 2012

A potentially huge contract is coming up for bid at Indianapolis International Airport. Proposals from firms seeking to manage and operate the airport’s central energy plant must be received by 2 p.m. Sept. 5.

The facility has been operated since 2006 by BHMM Energy Services, a subsidiary of Citizens Energy Group.

The plant provides steam, hot water, chilled water, compressed air and backup electricity.

“As part of our overall and ongoing efforts to control costs, we are exercising a right we’ve always had under the contract to terminate it early,” said Carlo Bertolini, spokesman for the Indianapolis Airport Authority.

“We believe the RFP process represents an opportunity to reduce expenses incurred by the IAA,” Bertolini added.

It wasn’t immediately clear how lucrative the energy services contract has been for BHMM. The Citizens unit is headed by Vicky Bailey, former president of PSI Energy and a former commissioner for the Federal Energy Regulatory Commission.

BHMM undertook an ambitious expansion of the airport’s energy plant to serve the new terminal. Previously, the plant served the former United Airlines maintenance base at the airport, which is now home to other aircraft repair firms.

For the new terminal, the airport expanded BHMM’s scope to construct a $30 million utility corridor. The corridor is a large tunnel bored under an airport runway.

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