The city of
At a press conference Thursday,
“The city and I&M have signed a settlement agreement to end the disputes surrounding the city light lease,” said Mayor Tom Henry.
It's an announcement
“With this agreement, we very much look forward to continuing to serve the citizens of
The agreement means I&M will pay the city almost $40 million over 15 years with $5 million upfront.
I&M will claim all the city light lease assets and will be the exclusive electric service provider in
“I&M gets a good package, and the city gets a value that we can utilize for the citizens of
The city will also get access to money I&M paid over the years to rent the utility, putting a total of about $75 million in the city's pocket.
“Very few other cities in the nation, let alone the state, can claim that,” said Kumar Menon, director of Fort Wayne City Utilities.
The settlement, if it's approved, also means the city and Indiana Michigan Power will avoid an expensive battle in court.
City leaders expect it will be approved, first by city council.
“There may be some discussion and more detail come forward, but I would expect council to fully approve this agreement,” said Councilman Tom Smith (R-1st District).
After city council, it's on to state utility regulators. Their approval will seal the deal and open the door for
“We have economic certainty in this region, we have financial stability coming to the city,” said Menon.
The agreement will be introduced at city council November 9.
Mayor Tom Henry says the city will hold several public information sessions about the agreement. He also promises citizens will help decide how to spend the millions of dollars the city will get.