Fall 2007 through 2008
The City of Fort Wayne and Indiana Michigan Power (I&M) began discussions preparing for the expiration of the 1974 City Light Lease. Because the expiration of the Lease was complex and resolution would not be easy, the City and I&M successfully agreed to extend certain notice periods under the Lease and assembled knowledgeable teams to address the unique and challenging legal and practical issues presented.
January 2009 through November 2009
The parties' negotiation teams met on multiple occasions and held discussions throughout 2009. Near the end of 2009 as the Lease's expiration date approached, and City and I&M went to the Allen Superior Court to preserve their respective legal positions. Judge Stanley Levine ordered the litigation stayed and directed the parties to negotiate their differences on a confidential basis with a courtappointed mediator, John Whiteleather.
December 2009 through February 2010
Over a three-month span, the mediator successfully conducted three intensive and lengthy mediation sessions with the City and I&M negotiation teams. The last of these mediation sessions produced a breakthrough – an understanding on a framework by which the parties believed they could resolve their differences concerning the Lease.
March 2010 through September 2010
With continued oversight by the mediator, the negotiating teams worked hrough a long list of terms and provisions for the transfer of all retail electric utility rights and property to I&M and a businesslike plan for the payment of compensation to the City. In addition to informal discussions with the mediator, the City and I&M teams met in person and by telephone on multiple occasions through September 2010 to hammer out difficult issues.
Ultimately, the teams were able to negotiate a final and mutually acceptable resolution to all issues under the Lease. The terms are set forth in a Settlement Agreement, executed on Oct. 28, 2010. The Settlement Agreement must be approved by the Fort Wayne City Council and by the Indiana Utility Regulatory Commission. The City and I&M are jointly seeking those approvals for the ultimate benefit of the citizens of Fort Wayne and I&M's customers.
Citizens Square200 East Berry St.Fort Wayne, IN, 46802, USA Tel: (260) 427-8311 or 311 locally
"Today (Oct. 28, 2010) is a good day for the people of Fort Wayne," said Mayor Tom Henry. "This settlement will strengthen Fort Wayne and better position us for economic growth. Not only does it provide an important income stream, it ensures that I&M continues to provide quality service to the area."