St. Martinville could ditch CLECO

The City Council Monday night voted to play hardball with CLECO, its longtime provider of wholesale electric power.
At the urging of contract electrical engineer Jim Poché – and with City Councilman Craig Prosper upping the ante – the council voted to ask the power company for an extension of six months on its current contract, with the understanding that if CLECO declines or demurs, the council at its June 16 meeting will consider terminating the contract.
Poché had suggested asking for a 90-day extension but Prosper convinced his colleagues to up that to half a year. “I think we speak louder if we want six months or we terminate,” he said.
The city buys power from CLECO and resells it, via its own distribution system, to homes and businesses in the city, thereby earning about $1.6 million in annual revenue.
The contract with CLECO – who for years has been the only utility company willing to sell power to St. Martinville – runs for five years. But there’s an opt-out clause at the two-year mark where the city can get out of the contract without penalty.
The clause requires notification six months in advance, and that notification benchmark is approaching.
Poché told the council the power industry has changed and the city’s options have improved, which means the possibility of lowering electric bills.