Indiana Michigan Power’s refusal to release information about Fort Wayne’s former electric utility will lead to a court battle, according to a city-paid consultant.

Anand Gangadharan, president and chief executive officer of Novi Energy, told the Fort Wayne Board of Public Works on Wednesday that he has been unable to get information from I&M despite numerous requests. Instead of getting details on the private utility’s upgrades to the former city electricity system, for example, his company has had to rely on looking at power lines and substations in person, often from behind fences.

"It is obvious that cooperation from I&M has been minimal up to this point despite public comments to the contrary," he said.

Susanne Moorman Rowe, I&M director of communications, said assertions that her company has not complied with requests are false. She said the city has made overly broad requests for information and the company has been trying to clarify what is sought. For example, she said the city a few weeks ago asked for information regarding all 65,000 customers in the former City Light footprint, even those who have always been served by the private utility.

The city is asking for information on customers that it does not have a right to, she said, noting the company was not aware a public report would be given until hearing about it from the media.

Under a lease signed in 1974, the city’s electric power grid – formerly run by City Light – was turned over to Indiana & Michigan Electric Co. That lease expires in March. Mayor Tom Henry has said the city will seek bids from electric providers to get the best deal for residents and customers.

Novi Energy, of Novi, Mich., was hired in June for $95,000 to examine the assets of the City Light area as the city investigates leasing those assets to a new power firm. The board also approved a $33,980 contract in October with R.E. Pender Inc., of Winter Park, Fla., to help analyze the value of the city’s old electric utility infrastructure.

Gangadharan said that while I&M argues a 1980 state law gave it the right to serve electricity to all customers in Fort Wayne, it won’t use the state’s compensation formula to pay the city for customers lost.

"This is a wonderful heads we – I&M – win, tails you – the city – lose," he said. "It is also a sure path to litigation. What other course does the city have when it is being pressured to give away one of its most valuable assets."

The statements by Gangadharan are the latest in the public-relations battle between the city and private utility since Henry announced he would seek competitive bids.

The Journal Gazette published a letter from the power company’s president in July. The letter – offering reasons why the power company and not the city should assume ownership of the utility – was subsequently mailed to Fort Wayne customers.

Henry conducted a news conference last week to allege that I&M had defaulted on its lease with the city and gave it until mid-October to resolve the problems.

Both sides are scheduled for mediation this month, and City Utilities Director Kumar Menon said he is hopeful a costly legal battle can be avoided.

He said city residents should not be concerned they will lose their electric service, as it would be illegal for I&M to simply shut down.

"I do not want the public to ever fear that the lights are going to go out," he said.

Moorman Rowe said her company is also hopeful the mediation will resolve the issue. She said the company still wishes to buy the remaining assets "at a very fair and generous offer" and allow the company to continue as provider.

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