GLASGOW – It appears the Glasgow Electric Plant Board will stop pursuing legal action against the Tennessee Valley Authority and will ratify a 20-year contract between the EPB and TVA.

Mayor Harold Armstrong shared the information at Monday night’s Glasgow City Council meeting during discussion of a resolution objecting to the EPB’s decisions relating to TVA.

Barren County Economic Authority Director Maureen Carpenter learned from TVA representatives about 10 days ago that they were uncertain about offering benefits to local businesses and industries with the EPB contract in jeopardy, the mayor said.

“I called the chairman of the Electric Plant Board (D.T. Froedge) and I told him what the TVA had told Maureen Carpenter. And at that point, he said: ‘We’re trying to protect the residential customers of Glasgow, however, if the TVA will guarantee her all the tools in her bag to go forward, we will take away the lawsuit, we will ratify the contract and we will try to get down to business as usual,’ ” Armstrong said.

Reached later, Froedge said the EPB board will probably meet in a special session to discuss dropping the lawsuit.

“I’m assuming they are, but I’m reasonably in the belief they will … ” agree to drop the suit, Froedge said.

In the resolution, the city council said future economic development of the city relies on a partnership with TVA and that it would be harmed greatly if the EPB rescinded its longtime TVA agreement.

The city council also asked in the resolution for Armstrong to “ … engage in sound reason and logic to facilitate resolution of the EPB current state of affairs.”

The city council unanimously adopted the resolution.

Carpenter expressed gratitude to the city council and to Froedge.

“We are very pleased and happy with the city council’s decisive action to assist in resolving this issue. We would also like to thank the chairman of the EPB, D.T. Froedge, for his cooperation in reevaluating this issue and hopefully deciding to withdraw the lawsuit,” she said.

The city council adopted the resolution before a letter stating a joint position by BCEA and the Glasgow-Barren County Chamber of Commerce was read by City Attorney Danny Basil.

In the letter, the BCEA and the chamber said they are dedicated to supporting local business and industry.

“From this perspective, on behalf of the combined 35 board of directors of the authority and the chamber, and the 380 chamber members represented, we oppose the actions taken by the Glasgow Electric Plant Board to rescind and cancel the long-term contract with the Tennessee Valley Authority.

“If canceled, it will negatively impact economic development and local industry,” the letter said.

Both entities asked the city council to intervene and the EPB’s board of directors to resolve issues resulting in “… stability and sound judgment.”

The letter was signed by David Peterson, BCEA board chairman, and Treva Shirley, chamber president.

“We thought it was time for us to take a stance for our chamber members. We have over 350 members and we just don’t want anything to deter us from the progress that’s been made with the new factory coming in and our economic growth,” Shirley said of the letter.

A letter Froedge sent to council members Monday was also discussed.

In his letter, Froedge said suggestions have been made that the EPB lawsuit is an effort to withdraw from TVA and to rescind the 20-year contract.

“That is simply untrue. GEPB is not seeking to terminate its relationship with TVA, nor is it seeking to renege on any promises it made to TVA. Instead, GEPB is simply seeking to restore for itself an important right that it bargained for with TVA in the LTA (long-term agreement),” the letter said.

The long-term agreement included an option allowing the EPB to “reduce this commitment to just the original rolling five-year term.”

“The lawsuit challenged the validity of this waiver. Thus, the EPB is not looking to terminate its relationship with TVA, or to renege on any of its agreements with TVA. The EPB is simply looking to restore its contractual rights,” Froedge said in his letter.

He also said he does not believe it would be in the city’s best interest to accept the 20-year TVA contract and its consequences, but if the city council asks the EPB board to stand down, he is certain it will.

Councilman Marlin Witcher represents the city council on the EPB board.

Before the city council adopted the resolution, Councilwoman Chasity Lowery asked Witcher if he was willing to change his stance on the TVA relationship.

“I will do anything that would be the betterment of the community, and I think all five of the board members will feel the same way,” Witcher said.

Councilman Patrick Gaunce also asked Witcher why he changed his mind regarding the lawsuit.

Witcher said he agreed with the lawsuit against TVA because he didn’t think the EPB needed a 20-year contract.

“There’s some things that have come up that’s different,” Witcher said.

Armstrong said Froedge was trying to represent residential customers. “Whether or not we go back to the 20 years and the residential customers are suffering and economic development is good, then that’s not a total loss,” Armstrong said.

Additional payroll tax revenue could be used to establish a Homestead Fund for EPB customers struggling to pay their electric bills, he said.

“If we’re taking in $2.1 million more a year five years from now, then we can subsidize their electric bills so they won’t be out in the cold like some people thought they were going to be with this 20-year contract,” Armstrong said.