New report says coal plant a bad deal
By Nick Dutro, ndutro@advertiser-tribune.comA new report released by the Sierra Club Thursday found there is no economic reason for AMP members to participate in the proposed building of an AMP coal plant in Meigs County in southeast Ohio. Republic, Sycamore and Carey are members of AMP.
The report, titled "New Insights Into the Proposed AMP Generating Station: October 2009," analyzes recent market trends and concludes ratepayers in AMP member communities are "on the hook" for electric power they may not be able to afford.
"It's beyond time for AMP's members to get together and cancel the project before it's too late," Nachy Kanfer, a representative of Sierra Club, stated in a news release.
"Under no circumstances could this plant now be a good deal for AMP ratepayers," Kanfer said.
According to a news release, the AMP plant originally was proposed in 2006 as a $1.5 billion project that would provide electricity to municipal utilities across Ohio, Michigan, Pennsylvania, West Virginia and Virginia. Though construction of the project has not yet begun, costs already have increased to about $3.9 billion, including financing.
Kanfer said their report found Ohio may not see an increase in electric demands in the near future, and may even see a decrease for demand within the next few years.
Kanfer said this is not because of economic reasons, but instead because any increase in electricity demands would be offset by energy-efficient products and standards.
Republic has purchased a share of 0.1 megawatts of the plant's output.
Kanfer said Republic had total electric sales in 2007 of 3,293 megawatt-hours. Their 0.1 megawatts can be expected to produce 745 megawatt-hours per year, meaning roughly 22-23 percent of their power would be coming from the AMP plant.
And because members are required to sign a 50-year contract, Republic would be locked into its share, regardless of increases or decreases in population.
Philip Brenner, mayor of Republic, declined comment.
Sycamore, Clyde and Carey also are to have shares in the AMP plant.
According to representatives from Sierra Club, the contract also states municipalities are responsible for payment if others back out, regardless of whether a municipality needs the extra share.
The study was commissioned by Sierra Club to look at the environmental factors of the plant. Kanfer said "it is no secret Sierra Club is concerned with environmental issues," but the club felt it was important to look at the economic impact as well.
"Canceling this coal plant is good for the environment, but it is also best for people's finances," Kanfer said.
Kanfer said Sierra Club suggests the AMP plant be canceled, with the funds used for researching renewable and energy-efficient sources.
"Some of these trends, like the recession, are short term. Some are not, like laws that reduce electric demand," Kanfer said. "There are certain mandates and laws that will require [energy-efficient products]."
Kanfer said Sierra Club does not suggest municipalities back out of the deal, as they would be penalized as per their agreement. Kanfer suggested residents and officials instead go to AMP with their concerns before their annual meeting next week in Cleveland.
"I would definitely encourage people to re-examine their agreement," Kanfer said.
A number of elected officials in AMP municipalities are reconsidering their stance on the agreement, fearing they did not ask the right questions and now are locked into a project they cannot afford.
"I don't see us in the next 50 years still relying so heavily on coal," said Andrew Flock, a city council member in Painesville. "There are too many variables to allow this contract. ... I'm not in favor of having residents pay a higher cost for energy, because that was the whole point of building the power plant."
On the Web:
Sierra Club
sierraclub.org/coal/oh
