Springfield Mayor Mike Houston is defending the city’s decision to renew a contract for CWLP insurance, despite criticisms over the lack of a bidding process.
The 3 year contract with R.W. Troxell to insure the city owned utility will cost around $1.8 million per year. Mayor Houston, during an interview on WUIS’ Illinois Edition, said the local firm has been doing business with the city for 30 years with a solid track record.
"Insuring a $1.6 billion power plant is not like going to Geico and buying insurance. And it's really hard when you sit down with an insurance policy to be able to compare two insurance policies," Houston said.
Houston added that few companies will insure power plants. He says R.W. Troxell came through for the city after a power plant explosion a few years ago, which resulted in $50 million in payouts.
Some aldermen also complained the issue was brought before them with little time to consider alternatives. Coverage for CWLP was set to expire July 14th.
Here's the full interview with Mayor Mike Houston for WUIS' Illinois Edition
