Neither of the two candidates running to replace Daniels as governor -- Republican Mike Pence and Democrat John Gregg -- has expressed the same level of enthusiasm for the project, creating a potential opening for opponents.
Pence said he's committed to working with both opponents and supporters of the project, while "honoring the commitments the state has already made."Like most of these crony capitalism deals financed by the government, it's a win-win proposition for Leucadia. The state has signed 30-year contracts to purchase natural gas at a guaranteed price that is higher than current market rates regardless of the price of gas at the time it is produced. In the unlikely event that natural gas prices are higher than the guaranteed price, Leucadia would split the profit with natural gas consumers. If the price is lower than the guaranteed price, which is the more likely scenario, then consumers will pay the difference in the form of higher utility rates. Large industrial consumers are exempt from paying the higher costs because they had the political muscle to get themselves exempt from the deal. Small industrial consumers, however, could pay as much as $250,000 in higher utility bills. Small business owners could pay $2,500 in higher utility bills.