Committee to recommend new routes on Jasper Power Plant
With bids running between $300,000 and $900,000 to demolish the Jasper Power Plant, the Jasper Electric Committee decided to seek another route to decommission the former asset.
According to Jasper Utilities Manager Bud Hauersperger, the soft price of steel, as well as unknown environmental variables in the demolition of the power plant drove up pricing on the project.
Bids were opened at the February Jasper Utility Service Board meeting.
- North American Dismantling Corporation of Lapeer, Mich. for $756,308.
- B. Jones of Camby, Ind. for $294,000.
- Renascent from Indianapolis for $784,850
- National Salvage and Service Company of Bloomington, Ind. for $837,000.
- Spirtas Wrecking Company of St. Louis, Mos. for $558,885.
- Brandenburg Industrial Service Company of Chicago, Ill. for $664,715.
- Bierlein of Midland, Mich. for $887,350.
Environmental concerns for those companies centered around the remediation of asbestos and other Environmental Protection Agency regulated materials. The utility had completed much of this at the turn of this century, but it only dealt with the friable material — the crumbling material like that found in insulation which can easily become airborne. A study afterward found that much of the construction material like floor tiles, inner valve seals and exterior siding still contained asbestos and any demolition would have to mitigate its presence.
Additionally, a walkthrough with contractors who brought their own environmental specialists pointed out the potential presence of PCBs (polychlorinated biphenyl), another material that has to be disposed of in a special manner.
Moving forward, the committee will recommend several actions to take to reduce the cost of maintaining the power plant.
The first will be to examine the costs of insurance and utilities to the property — estimated to be up to $20,000 a month — with the goal of reducing those costs. If they cut those costs, it could bring that monthly price down to under $6,000.
Since the power plant will likely never operate again, the committee will recommend they drop the excess insurance it has to keep it ready for operation.
Hauersperger said he felt if the city ever decided to power back up as a coal-burning power plant, the EPA would have some serious issues with permitting.
“We should make the commitment that it is not going to be a coal plant anymore and do something,” Hauersperger said.
Hauersperger reported he would like to explore some grant opportunities to clean up the environmental issues with the plant. This could assist in opening up other opportunities for the utilization of the power plant structure.
City Attorney Renee Kabrick said they could then reach out to developers to see if anyone thought it would be feasible for housing or another use.
Also, the utility will consider piecemealing parts of the power plant out for sale. Electric Commissioner Wayne Schuetter commented that as these large parts are removed, it could allow a developer or other interested party to formulate a better plan for the building.
Another issue is the extra power plant operator that has been transferred to Electrical Distribution. He is being kept on in case the plant would be utilized to produce power. If it is decommissioned, that position would no longer be necessary.
The committee will take its recommendations to the Utility Service Board at its next meeting on Monday, March 21 at 7 p.m. at City Hall.
