By Rupert Howell

Asset manager Sandra Darby who works at LSP Energy was optimistic Monday about the power plant’s future following the February 10 filing of reorganizational bankruptcy emphasizing property taxes due are considered secured claims saying Monday, “It’s the first thing paid when we emerge (from bankruptcy).”

Ken Thorp is plant manager and he, Darby and other employees work for NAES who run day-to-day operations at the plant.

Darby has more than employment interest as she also serves as South Panola School District’s board of trustees president, a title she received last month. South Panola has budgeted approximately $1.8 million of the $4.5 million owed in property taxes.

The City of Batesville has approximately $800,000 budgeted.

Panola County likewise budgeted the remainder, $1.86 million, with almost half a million of that in the road and bridge fund and the balance in the general fund.

Darby confirmed published reports indicating cash flow issues beginning with mechanical failure of a combustion turbine in May 2011 when LSP faced  substantial costs, as well as a reduction in revenue.

That failure led to the rebuilding of one of the turbines, but the outage continued through 2011 and into 2012 because, following the repair, came continued mechanical problems court filings stated. Two of three turbines have been down at times.

In December of 2011 it was determined that a replacement rotor installed in October was faulty. The rotor has again been replaced and Darby said the plant is running at near capacity as of February 14.
Darby also noted that payment to Panola Partnership, a 30-year agreement which began a decade ago as a way to compensate for initial state enticements and infrastructure, of approximately $31,000 per month were current through February and would be paid in March with no interruption.

The plant’s owners are seeking a Debtor in Possession loan of $20 million while the company gets ready to sell.

Otherwise, “It’s business as usual—nobody’s laid off,” Darby continued stating that local vendors had all expressed interest in continuing to work with the company and noted that the main objective of owners and managers is to sell the plant.

As a school board member Darby would like to see taxes paid by May so that the 2012-2013 budgeting process can begin on time.

 “The sooner the better,” she stated although a federal judge will likely have control of that date.

She explained that the facility was sitting in a good position with all three units having recently been totally reworked.

She also cited the plant’s location with the ability of both Tennessee Valley Authority and Entergy to export the generated electric power through their lines while three different natural gas lines serve the facility by importing competitively priced natural gas to fuel the boilers.

Darby knows that local government and entities are anxiously awaiting results of the bankruptcy and sale.

The plant has changed hands three times  with a change in upper-level management as recently as last year although the local staff remained intact.

Meanwhile Darby as employee and school board trustee is, “. . .thinking positive. Hopefully good things are going to come from this.”

(Unsuccessful attempts by this reporter to contact LSP Energy last week were mainly due to an incorrect listing in the current telephone book and the writer’s unimaginative attempts to find a correct listing. I apologize for any inconvenience caused or inferences implied–Rupert Howell)