Council approves LEPA as next power supplier for Abbeville

Later this year, the existing electrical contract for Abbeville is set to expire.
Initial negotiations about re-signing with the current provider, Constellation, would have resulted in a 45% increase for the contract, a move city officials did not entertain.
During its last meeting of 2023, the Abbeville City Council moved toward a provider that presented a more manageable offer. The council voted to adopt a resolution authorizing Mayor Roslyn White to execute all necessary documents to proceed with Louisiana Energy & Power Authority (LEPA) as the power provider for the city.
“Our existing contract is coming to an expiration in May of 2024,” White said during the meeting on Dec. 19. “The original quote provided by our existing supplier was at a 45% increase with more risk.
“That was not acceptable.”
The city issued a request for proposals for a new supplier last August.
“We didn’t receive a lot of quotes,” White said, “because the market is very volatile right now.”
Three potential providers did show interest, including LEPA.
“After a lot of talks, conversations and negotiations,” White said, “it is my recommendation that we transition to LEPA.”
Created by the State Legislature in 1979, LEPA is a joint agency of Louisiana cities and towns, each maintaining its own independent municipal power system. According to LEPA, it works with its member communities to provide stable sources of electricity at the lowest possible cost.
“I think it is going to be a better fit for us,” White said. “The 19 municipalities in LEPA all own their own (electrical) system. We will be one of the member communities, and we would purchase power together, kind of like a co-op.”
On June 1, LEPA will begin to provide power to the city.
“If we were to buy power from LEPA this month,” White said at the meeting, “it would be at 9% over the current contract. That’s $9 for every $100 that homeowner has (on the bill). Through this process, we have basically reduced a 45% to a 9% increase.
“It’s the best that we could do in the market.”
White added that the city will work to do what’s best for its residents.
“We’re going have to do a lot of work to insulate our customers and try to provide some buffers in case of any fluctuation,” White said, “but this is the best option that we can get right now in this market.”
Councilman Francis Touchet Jr., who has served on the council since 2002 and took part in the negotiations on the previous contract with Constellation, said the current reality is what the market will dictate.
“I have prided ourselves that Abbeville was the city with the cheapest electricity,” Touchet said. “I will tell you that we had a sweet deal 12 years ago. That sweet deal is no longer here. We will have to communicate to the public constantly. The market is going to be what dictates what is going to happen with electricity. For the past 12 years, that wasn’t the case because we knew more of the variables that were there than we will now know.”
Touchet echoed the mayor, saying the city had reviewed every available option.
“We have looked at this,” Touchet said, “and I will tell you, we have no other choice.
“LEPA is providing us with the best deal.”
Through continued negotiations, Constellation did provide a counteroffer that would amount to a 19% increase.
“That was only for a one-year extension,” White said.
Councilman Brady Broussard Jr., who served on the electrical committee, thanked LEPA General Manager Kevin Bihm and Assistant General Manager David Bergeron, who attended the meeting.
“It was a pleasure to work with you,” Broussard said. “It was a pleasure to hear the commitment you have for the city of Abbeville. This is the best our citizens and businesses can get at this time. We’re happy to give them that, with your proposal.”
More steps need to be taken, including approval by LEPA’s board as well as other paperwork. June 1 is Abbeville’s scheduled start with LEPA. Councilman Carlton Campbell asked if the headline would read, “Utility bills will be increasing.” White said that there is a chance that may not be the case.
“With LEPA, there is a chance it could decrease,” White said. “You don’t know until you go live with the contract.
“It just depends on where the market is right before we transition on June 1.”