Fri Feb 03 2012
by Laura Freeman
Reporter
American Municipal Power Inc. announced Nov. 27 that is has canceled plans to build a coal-fired power plant in Southeast Ohio that would have provided electricity to Hudson and other cities.
AMP, a wholesale power supplier of electricity, cited escalating construction costs from original estimates of $3.3 billion to nearly $4 billion as the reason for the decision to not proceed with the 1,000-megawatt plant in Meigs County.
Hudson City Council had approved a 50-year contract with AMP-Ohio in October 2007 to participate in the project. Because of the change, the city is no longer under obligation to participate, said Hudson Communications Manager Jody Roberts.
AMP is looking into the development of a natural gas-fired power plant instead of the coal-fired plant.
The city will wait for AMP to finalize its new plans before deciding if it will remain involved.
"We are not obligated to participate in the converted plant," Roberts said. "We may want to be involved in it. They put together the power packages and we look at them."
The city's contract with AMP was for 6 megawatts of power from the coal-fired power plant, which would have represented about 18 percent to 25 percent of the city's normal daily power demands. It is only a small portion of the power package the city obtains from AMP, Roberts said.
Council members will discuss AMP's new direction in a workshop and decide whether to shift the city's electricity portfolio, Roberts said.
The city will decide on a long-term purchase to replace the 6 megawatts of power, Roberts said. The city will look at price and availability.
"This is one tiny piece of the big puzzle," Roberts said. "Don't put too much emphasis on this small part. This won't impact us as far as our ability to provide power or have long-term power."
Hudson was one of 81 members participating in the Meigs County project, which had come under criticism from environmental groups.
Some permits for the new plant were under appeal by the Sierra Club and Ohio Citizen Action environmental groups, but the company says that opposition had nothing to do with its decision.
The Natural Resources Defense Council says natural gas plants emit about half the carbon dioxide as a coal plant.
E-mail: lfreeman@recordpub.com
Phone: 330-688-0088 ext. 3150
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