{"id":6674,"date":"2009-08-26T16:30:35","date_gmt":"2009-08-26T20:30:35","guid":{"rendered":"https:\/\/www.aroundfortwayne.com\/news\/?p=6674"},"modified":"2020-12-06T10:38:26","modified_gmt":"2020-12-06T15:38:26","slug":"ims-failure-to-meet-lease-terms-triggers-citys-default-notice","status":"publish","type":"post","link":"https:\/\/aroundfortwayne.com\/news\/2009\/08\/26\/ims-failure-to-meet-lease-terms-triggers-citys-default-notice\/","title":{"rendered":"I&M’s failure to meet lease terms triggers City’s default notice"},"content":{"rendered":"

\"City<\/p>\n

Press release from the City:<\/p>\n

I&M’s Failure to Meet Lease Terms Triggers City’s Default Notice<\/strong>
\nMayor Fights to Protect Citizens’ Rights, Stop Loss of Valuable Community Asset<\/em><\/p>\n

<\/p>\n

Joining forces with State Representative Win Moses (D-Fort Wayne), Mayor Tom Henry today held Indiana Michigan Power (I&M) accountable for failing to meet the terms of its lease with the City of Fort Wayne as the current provider of electricity to portions of the central city. In response to its deficiencies, the City has issued a letter of default to I&M.<\/p>\n

Both leaders also reaffirmed their determination to fight for the rights of Fort Wayne ratepayers and taxpayers, and to defend the community’s ownership of its electric utility and the opportunity it represents to serve its customers.<\/p>\n

“Fort Wayne’s electric utility is a potential $100 million community asset,” stated Mayor Henry. “Our utility was leased, but never sold, to I&M. For 35 years, I&M has had access to that asset and enjoyed the privilege of serving our customers. After such a long time, I decided it made good business sense to revisit the deal and ensure that our citizens receive fair value moving forward. I believe a little competition is good. What is important to note is that when the lease ends, I&M must return a viable electric utility system to the City. What troubles me is that I&M is not ready to do that, and the clock is ticking.”<\/p>\n

“I&M wants you to believe the Fort Wayne electric utility belongs to them, but the lease is clear,” noted State Rep. Moses. “It belongs to the people. When they talk about rates skyrocketing and poor service with a new operator, they’re using scare tactics to cover the fact they’re trying to steal our system. I&M has never paid one penny for the right to serve our customers. Their behavior is unfair. It’s also something unheard of in the industry.”<\/p>\n

With this legal notice, the City is taking action to protect its electric utility system, its rights under the existing lease, and of greater importance, its customers and citizen-owners. The letter was sent on August 20, 2009. It describes areas in which I&M has not met its basic obligations to the people of Fort Wayne.<\/p>\n

The City’s letter to I&M outlines the following defaults under the lease:<\/p>\n