NextGEN sets up headquarters Downtown in campaign to court Lafayette on LUS deal

Photo by Travis Gauthier

The gist: Swimming upstream of public opinion, the firm making a play to manage LUS is widening the reach of its pitch. Bernhard Capital Partners/NextGEN Utility Systems hung up a banner, so-to-speak, with a temporary outreach center in Downtown Lafayette.

The outreach center puts boots on the ground for a growing PR campaign. This week, NextGEN also created a Facebook page and launched a phone campaign to go along with its digital billboards billing a $1.3 billion offer. Talking points from the phone campaign emphasize the $140 million in up front cash included in the deal, rate reductions and the company’s intention to site its headquarters in Lafayette. NextGEN is renting space in the Omni Center on Jefferson Street for the next two and half weeks, according to Omni Center owner Robert Guercio.

Could environmental progressives be a base of support? In a phone interview, Guercio, a Downtown entrepreneur and sustainability advocate affiliated with Bayou Electric Vehicles, bubbled with enthusiasm about the possibilities NextGEN offers, particularly in modernizing LUS. Guercio said he fought LUS for two years to get LED lighting Downtown and that the utility dragged its feet on renewable energy.

“Why is it so hard for us to do innovative things? Government is kind of clunky sometimes,” Guercio said. “This is their [NextGEN’s] specialty. We’re in business to rent the facility, but I’m also supportive of an effort to modernize LUS.”

LUS announced a $7 million LED streetlight program in 2017. The city owns its 18,000 streetlights, and the Public Works Department pays LUS for electricity and maintenance (replacing bulbs and poles, etc.). In what could be argued was an innovative approach, LUS agreed to fund the program up front because Public Works could not afford to do so. Because LEDs are cheaper to run than the city’s existing lamps, LUS will continue to charge Public Works the contract price for the more expensive conventional lighting until it recoups its $7 million investment.

Bayou Electric Vehicles team has twice unsuccessfully sought funding for Lafayette’s first EV charging station via local pitch competition 24 Hour Citizen Project. Jeff LeBlanc, who made the pitch at the event this year, said that NextGEN will give $3,000 to an upcoming fundraiser, enough for BEV to finally get Lafayette’s first EV charging station placed in front of The Wurst Biergarten on Jefferson St., another Guercio-owned operation.

LeBlanc said BEV’s sole issue is proliferating electric vehicle infrastructure in Lafayette, and it won’t be making any sort of formal statement on third party management of LUS. Speaking for himself, LeBlanc said he’s skeptical of the terms of NextGEN’s proposal, particularly the 40-year contract, though he shares some of Guercio’s frustration.

“LUS had every opportunity to get [Lafayette’s first EV charger] this done over the past two years,” he said.

NextGEN’s critiques of LUS echo others from renewable energy advocates. And that could be why the company might find common ground there. 

Who, what, when and how. It’s really unclear what NextGEN’s path to success is. Even if it successfully courts progressives, who else will carry water for the controversial proposal is yet to be seen. Mayor-President Joel Robideaux took an earful for suggesting that public opposition is uninformed, yet he has not voiced dedicated support for an offer he courted. What details a potential contract would include, beyond the exchange of money, are yet to be seen. When and how this moves past the hot air stage, either by vote of the public, vote of the council or a contract with the administration, is unknown.

What to watch for: Whether any part of Lafayette’s political class joins the campaign. Given the toxicity of the topic from the time NextGEN’s communications with the administration were revealed, there’s been no local political capital spent promoting it, outside of the mayor-president’s call to explore options.

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