MARTINSVILLE, WV — “Martinsville City Council on Tuesday will find out how much the city owes toward the development of an American Municipal Power (AMP) project in Ohio that never came to fruition.
Through AMP, a nonprofit organization, Martinsville buys wholesale power that then is sold and distributed to city electric department customers.
In November 2009, AMP ceased development of a coal-fired power plant in Meigs County, Ohio, called the AMP Generating Station (AMPGS) project, due to contractors’ cost estimates having risen 37 percent.
Martinsville had signed up to participate in AMPGS through buying some of the electricity that the plant would have generated.
AMP decided to redesign the Meigs County site for the production of power with natural gas, then abandoned that idea after determining it would be less costly to buy another power plant for which construction was nearly finished.
…As an AMP member that was to take part in AMPGS, Martinsville is obligated to pay part of the ‘stranded costs’ that AMP incurred in efforts to develop the plant, officials have said.
According to the agenda packet for Tuesday’s council meeting, AMP now has AMPGS stranded cost estimates for the city, plus repayment options for the council to consider.
Bowles declined to release that information before the meeting.
However, AMP previously estimated Martinsville’s share of the AMPGS costs at $1.7 million. The actual amount will be learned when the council meets at 7:30 p.m. Tuesday in its chambers at the municipal building on West Church Street.”
— Mickey Powell, Martinsville Bulletin