Pulling the plug on what was once a good idea

LEPA chart shows Minden (far right) with highest rates of comparable-sized cities and Ruston (far left) with lowest.

This is Part 2 of an exclusive interview with Mayor Nick Cox with comments from former Mayor Tommy Davis concerning the utility contract between City of Minden, SWEPCO and LEPA. To read Part 1, please go to https://websterparishjournal.com/2025/02/04/a-new-contract-a-new-day-for-minden-with-higher-hopes-for-lower-utility-bills/

By Bonnie Culverhouse

Former Minden Mayor and Councilman Tommy Davis remembers being on a committee in 2007 and studying the contracts presented by SWEPCO when the late Bill Robertson was mayor.

“SWEPCO had a coal-fired plant, and our rates at that time were cheaper than anybody’s around,” Davis said. “It stayed that way for a while. When global warming became a thing, regulations changed and our electricity went up.”

Minden’s electricity comes through Midcontinent Independent System Operator (MISO), “a network which Entergy is in where we got our electricity,” Davis said. “Because SWEPCO transported it, it basically doubled our transportation costs.”

Davis said, “looking back, it was a good idea at the time, but everything changed. We didn’t have any options. That was the thing about it. We just had too long of a contract. That’s what it amounts to.”

Fast forward to Monday night when the current Minden City Council unanimously granted Mayor Nick Cox the authority to sign a new contract with Louisiana Energy & Power Authority.

According to the contract with LEPA, the power will continue to be transmitted through MISO with LEPA’s power purchasing decisions as influenced by its member cities. According to Cox, Minden has been an active, voting member with LEPA for 41 years.

“LEPA also has its own power plants generating power that they sell power into MISO,” he said. LEPA is a local balancing authority in MISO.

Eliminating some of the previous players will be only one of the steps that lowers costs for citizens. The Megawatt charge will be lowered, but there are too many factors to figure an exact charge or how much lower citizens’ bills will be yet.

In the chart above, Minden is shown on the far of right of other LEPA member cities of similar size (Ruston is on the far left), indicating Minden’s utility costs are the highest and Ruston’s are lowest.

Once LEPA takes over the power helm, Cox said Minden should fall around the middle, “whereas historically we’ve been on the far right side for many years,” he said. “LEPA provides this chart every month, and I’ve never seen one where Minden isn’t significantly higher than the other members.”

As written in Tuesday’s story, the council has sought an opinion from the State Attorney General and, according to that office, Louisiana Revised Statute 33:41649(B) reads:

Municipalities may obtain water or electric current under contracts extending over a maximum period of fifteen years with private persons, on such terms and conditions as may be agreed upon by the parties. The governing authority of the municipality contracting for such water supply or electric current may bind the municipality, the greening authority and its successors in office to carry out the terms of any such contract.

By giving Cox the authority to sign a contract with LEPA, Minden could begin seeing lower bills as early as this summer.

Councilman Buddy Myles said knowing the city’s efforts will benefit every resident and business is rewarding.

“We appreciate your patience, and we’re not stopping here,” he said. We are continuously seeking new ways to save you money and improve the quality of life for everyone in our community.”

Hope of solving the crisis has been a 2-year roller coaster ride, Councilman Andy Pendergrass said.

“But our passion for seeing the people get relief has never wavered. I believe that God has heard our suffering and is delivering us from an evil that has plagued our city for far to long,” he added. “For that, we are grateful. The Mayor, council, Public Works, our attorneys, our consultants, and LEPA have worked together for over a year to bring a massive win to Minden. All deserve credit for playing their part, but at the core of this is a story of unity. None of it happens without both black and white elected officials dreaming together and working with each other to make the dream a reality.”