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Saturday, November 07, 2009
Ind. Law - "I&M fight costs Fort Wayne $300,000 for lawyers"
Benjamin Lanka reports today in the Fort Wayne Journal Gazette in a story that begins:
Fort Wayne has paid nearly $300,000 to attorneys since last year to battle Indiana Michigan Power over the value of the former City Light electric utility.The city released its I&M legal expenses Friday, nearly two months after they were requested by The Journal Gazette. The expenses show the city has employed three firms to help it manage the often contentious negotiations with the private utility.
The largest recipient has been the Baker & Daniels law firm. Tim Haffner, the city’s corporate counsel, works for that firm and has been a part of the electric negotiations since last year. His firm received $197,464 through Tuesday.
The city also hired Michael Cracraft, of Hackman Hulett & Cracraft, because of his experience working with utility law. The Indianapolis firm earned $79,592 since 2008.
The final attorney hired was Wayne Turner, of Bingham McHale, who will lead the city’s litigation efforts against I&M. The Indianapolis firm earned $14,881 from the city, the bulk of that coming this year.
Haffner said hiring different firms was necessary to match the array of attorneys to be used by the utility.
Kumar Menon, City Utilities director, said the money for the attorneys is being paid from proceeds from the city’s lease with I&M. Under the lease signed in 1974, the city’s electric power grid – formerly run by City Light – was turned over to Indiana & Michigan Electric Co. That lease expires in March.
Mayor Tom Henry has said the city will seek bids from electricity providers to get the best deal for residents and customers, prompting public sparring between I&M and the city.
At stake in the negotiations is how much I&M is willing to compensate the city for its former electric utility. City officials previously said the difference between the sides was between $50 million and $100 million.
The private utility sued the city last month in the case, but both sides said they hope to reach a deal through mediation.
Posted by Marcia Oddi on November 7, 2009 08:36 AM
Posted to Indiana Government | Indiana Law