Construction under way at LEPA plant

Thursday’s groundbreaking ceremony of the Louisiana Energy and Power Authority natural gas-fueled power plant marked a milestone in a process that began with conversations four and a half years ago, LEPA General Manager Cordell Grand said.
After the groundbreaking photo opportunity at the power plant construction site on Youngs Road next to the horse arena, LEPA held a ceremony and reception at the Morgan City Municipal Auditorium.
Morgan City Mayor Frank “Boo” Grizzaffi said the groundbreaking was an important event for LEPA and the six participating member communities.
LEPA member municipalities Morgan City, Houma, Jonesville, Plaquemine, Rayne and Vidalia will get power from the plant.
Actual construction of the plant began Wednesday.
The city of Houma has the largest share of the plant at 40.9 percent stake in the plant while Morgan City has 15.6 percent share of the 64-megawatt plant. The plant will cost $120.77 million to build.
“The foresight of these six members to try to keep the utility rates efficient is what it’s all about,” Grizzaffi said. “This will be the most efficient plant built in south Louisiana in the last 40 years,” Grizzaffi said. The future of energy costs is bright for the city, he said.
Terrebonne Parish President Michel Claudet said the decision was easy for Houma to participate in the project. The natural gas that will power the plant is low-cost, and the plant will provide Houma with increased power generation for the future, Claudet said.
Grand said the plant has taken awhile to get to the groundbreaking. The most difficult part of the process is getting people from different areas together to do what is necessary to accomplish a common goal, Grand said.
LEPA was formed in 1979 with a main mission being to help member communities do together what they could not do alone, Grand said.
The project to construct the power plant is a good example of communities working together to accomplish a common goal, Grand said. “Conversations about a new plant started back in November of 2009 at an operating committee meeting,” Grand said.
Officials decided that Morgan City would be the right fit for the power plant, and in October 2010, the participating communities got together to jointly fund the development of a project through the issuing of bonds, Grand said.
In the spring of 2011, LEPA hired engineers to look at different potential sites over about a year’s time period, Grand said. In early 2013, LEPA started advertising contracts for bid, Grand said.
LEPA Board Chairman Hyram Copeland, mayor of Vidalia, said the plant is a product of LEPA communities being able to control their own destinies. “I predict in the future in the years to come, we’ll build more of these to furnish electricity for the remaining amount of LEPA cities,” Copeland said.
Plaquemine Mayor Mark Gulotta, who is in his 22nd year as a LEPA board member, said, “Up until a short time ago, I never really thought we’d ever build a project. I thought we would talk about building a lot of projects … But to really do it is amazing.”
The plant will give member communities the ability to keep power costs cheaper than surrounding areas, Gulotta said. The communities have been through some difficult years, such as 2008, when natural gas prices skyrocketed, Gulotta said.
Rayne Mayor Roland Boudreaux said he was elated for the city of Rayne to be part of the project.
Grand said, “It’s going to have economic value for the constituents of these cities for many years to come.”
The plant is projected to be finished in late 2015.
In attendance at the groundbreaking were Tony Calderone, Robins and Morton director of operations; Cedric LaFleur, LEPA chairman and former Morgan City mayor; Dennis Chianese, Burns and Roe senior project manager; Frank “Boo” Grizzaffi, Morgan City mayor; Joe Vumbaco, Energy Resource Consulting Group managing partner; Tom Bourg, Houma/Terrebonne Parish utilities director; Hyram Copeland, Vidalia mayor; Cordell Grand, LEPA general manager; Michel Claudet, Terrebonne Parish president; Mark Gulotta, Plaquemine mayor; Jason Akers, Foley and Judell Law Firm bond attorney; Roland Boudreaux, Rayne Mayor; and Tim Matte, former LEPA board member and former Morgan City mayor.