Council learns amount Tuesday
MARTINSVILLE, WV — “Martinsville’s share of costs for a power plant on which construction was halted more than two years ago is $826,102, Martinsville City Council learned Tuesday.
The city’s full ‘stranded cost’ — the cost incurred to develop a coal-fired power plant in Meigs County, Ohio, called the AMP Generating Station (AMPGS) project — is $1,305,506, according to information from AMP President/CEO Marc S. Gerken that was given to council on Tuesday.
However, that amount was reduced by $479,404 thanks to a development fee, leaving the city with the $826,102 bill, the information shows.
Martinsville buys wholesale power through AMP, a nonprofit organization, and then resells and distributes that power to city electric department customers. In November 2009, AMP quit developing the AMPGS project because contractors’ cost estimates had increased by 37 percent.
…Not included in the stranded costs are further net proceeds from litigation on the halted project, further settlements with contractors and/or equipment suppliers and disposition (or reuse) of the AMPGS site in Meigs County, according to Bowles.
Gerken’s information states the city has two choices:
• Make a lump sum payment of $826,102.
• Make a monthly payment for any period up to 15 years.”
— Martinsville Bulletin