Aug 25 - McClatchy-Tribune Regional News - Jacob Lammers The News-Herald, Willoughby, Ohio



American Municipal Power Inc. members have approved the development of an alternative to a coal-fired plant that was canceled nearly a year ago.

During last week's meeting, Painesville -- one of AMP's 81 member municipalities in Ohio, Michigan, Virginia and West Virginia -- voted to pursue a natural gas combined cycle plant to replace the proposed AMP Generating Station that was going to be built in Meigs County.

Plans for the plant were terminated after construction costs increased 37 percent, making the plant a $4.211 billion project. Aside from environmental factors, groups such as the Sierra Club of Ohio urged member communities to cancel the project because of rising costs.

"It was important to our participants that we conduct a thorough due diligence examination of our options to ensure we recommended the course of action that would bring the least overall risk, provide the most overall value and allow them to maximize the investments they have already made," AMP President/CEO Marc Gerken said.

 Gov. Ted Strickland expressed his support of the project in a statement earlier this week.

"AMP's natural gas facility will create more than 500 construction jobs, in addition to 28 permanent jobs, in Meigs County, and will provide a necessary supply of electricity to many of Ohio's communities. I applaud AMP for choosing to build in Ohio," Strickland said.

AMP's announcement comes on the heels of Ohio's unemployment rates declining for four months in a row and a recent federal reserve study that shows Ohio has the sixth-fastest growing economy, according to Strickland's statement.

"My administration stands ready to work with AMP to expedite the permitting process and to bring these good jobs to Ohioans," Strickland said.

With the passage of the natural gas plant and other efforts, AMP officials estimate its members could recoup more than $100 million with savings from reduced power supply costs through 2020 and utilization of the Meigs County plant.

Painesville City Council voted in 2007 to participate in the project, but -- like other AMP members -- voted to cancel the project in November 2009.

The natural gas plant will produce about 600 megawatts per hour -- much less than the canceled coal-fired plant, which would have produced 960 megawatts per hour.

Painesville City Manager Rita McMahon did not return calls seeking comment Tuesday.

(c) 2010, McClatchy-Tribune Information Services  To subscribe or visit go to:  www.mcclatchy.com/