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 City of Cleveland administrators are not ready to pull the plug on controversial waste-to-energy technology.
CLEVELAND — “Council members, who assumed last week that the proposition had met its end, expressed frustration and disappointment after hearing that the administration would not eliminate it from consideration.
‘The city’s own study demonstrates that the waste-to-energy plan is an economic lead balloon,’ said Councilman Jay Westbrook. ‘Call it for what it is, and stop tormenting tax-paying, conscientious residents.’
For several years, the city has flirted with the technology called gasification, which calls for burning pellets made from compressed trash to generate electricity for city-owned Cleveland Public Power.”
— Leila Atassi, Cleveland Plain Dealer
link to article
— Leila Atassi, Cleveland Plain Dealer
COLUMBUS — “American Municipal Power and FirstEnergy are scrapping plans to build jointly a gas-fired power plant in northeastern Ohio because of increased financing costs.
The project in Eastlake, announced in November, was going to generate power during periods of peak demand, meaning it would operate only on the hottest days of the year.
…The financing issues arise from the sequester, a series of federal budget cuts that took effect in March. Among the cuts was the amount of the subsidy for Build America Bonds and other bonds that cities can use to help finance power-plant construction.”
— Dan Gearino, Columbus Dispatch
link to article
 Paul Bender, the city of Cleveland’s new head of public utilities.
CLEVELAND — “At Bender’s swearing-in ceremony last month, Jackson praised him for his range and depth of experience and said Bender will play a critical role in ensuring the future viability of the city’s utilities.
But not everyone is sold on the new director just yet.
Environmentalists say they have yet to see where Bender stands on controversial issues involving Cleveland Public Power. The city is still studying the possibility of building a waste-to-energy plant, which would burn trash to generate electricity. And the utility is snagged in expensive long-term contracts with coal-burning power plants. In one case, a plant was never even built, but the city is on the hook for millions of dollars in stranded costs. The failed plant is at the heart of a pending lawsuit, involving CPP and a consortium of other cities that signed the deal.
Bender said in a recent interview that he has only begun to review CPP’s contracts and energy portfolio. He also deflected questions about the waste-to-energy plant, stating that the mayor is taking the lead on that issue.”
— Leila Atassi, Cleveland Plain Dealer
link to article
Statewide electricity rates show dramatic differences in Ohio, sometimes even between neighbors
CELINA, OH — “Most of Ohio’s municipal utilities are members of American Municipal Power, a Columbus-based company that manages energy purchases. AMP encouraged its members to buy shares in several new power plants, including the Prairie State Energy Campus in southwestern Illinois. The project has suffered mechanical problems and budget overruns. They could contribute to future rate increases in the communities that bought into it, including Galion, Cleveland, Hamilton and dozens of others. Columbus’ and Westerville’s utilities did not buy into the plant.
Celina, which owns a small share of Prairie State, has kept its rates low by carefully managing its expenses and because it has a large industrial base for a city its size, said Mayor Jeffrey Hazel. But he gets more complaints about rates than pats on the back.
‘The majority of people, just by human nature, don’t look outside themselves,’ he said. ‘It would be rare for someone from Celina to go outside the city to see what other people pay.’”
— Dan Gearino, Columbus Dispatch
link to article
CHICAGO, IL — “ A group of four city council members, including one from Cleveland, have asked the Ohio Attorney General to launch an investigation into the controversial bond-financed Prairie State Energy Campus that opened last year after cost overruns and delays.
…Ohio-based American Municipal Power, which has a 23% interest in the coal-fired plant, and Peabody Energy Plant, the company that led initial efforts to develop the joint power agency-owned project and later sold most of its share, disclosed within the last two months that they have received SEC subpoenas.
The southern Illinois coal-fired plant, which includes a coal plant and adjacent coal mine, has come under fire for construction delays and cost overruns that drove up the price for energy beyond what public utilities had expected to pay when they bought into the project.
Public utilities in Illinois, Indiana, Kentucky, Missouri, and Ohio issued $4.5 billion of debt, up from original projections of $1.8 billion. The bonds are secured payments from more than 200 municipalities that have contracts with the project.”
— Caitlin Devitt, Bond Buyer
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Potential fraud involving Prairie State plant
CLEVELAND — “Ohio’s Attorney General has been asked to investigate ‘potential fraud’ involving a multi-billion dollar coal plant supplying power to Cleveland and scores of cities across Ohio and the Midwest.
The calls for a state probe come on the heels of an exclusive 5 On Your Side investigation in July 2012 that raised serious questions about the plant’s performance and impact to ratepayers.
In a letter to Ohio Attorney General Mike Dewine , Cleveland Councilman Brian J. Cummins, along with three other councilman from Gallion, Painesville and Martinsville, W.Va, are ‘urging’ an investigation into “any potential fraud or misrepresentations” that led municipalities to enter into long-term contracts to invest in the Prairie State Energy Campus in Marissa, Illiniois.
The letter argues that ‘the financial impact of the project is already placing small communities under severe financial distress.’”
— Ron Regan, Newsnet 5
link to article

CHICAGO, IL – “Ohio-based American Municipal Power Inc. – a part-owner of the bond-financed Prairie State Energy Campus – has received a subpoena from the Securities and Exchange Commission tied to the project, according to public documents obtained by an environmental group.
AMP – which has a 23% interest in the controversial coal-fired project — has not disclosed the SEC subpoena in any of its Municipal Securities Rulemaking Board filings and the agency did not return calls Friday to comment.
The information came from city of Cleveland documents released Friday by Ohio Citizen Action. The SEC, which does not require an issuer to disclose the receipt of a subpoena, declined to comment.
The group received the documents Friday from Cleveland’s Public Records Administrator in response to a request sent Feb. 24 via email by its executive director, Sandy Buchanan. The group sought copies of any documents held by Cleveland Public Power, the mayor’s office, and the Cleveland Department of Finance ‘related to the Prairie State coal plant…from Nov. 1, 2012 to the present.’”
— Yvette Shields and Caitlin Devitt, The Bond Buyer
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COLUMBUS — “American Municipal Power has received a subpoena in a federal investigation into an Illinois power plant.
The Columbus-based company notified its member cities of the probe in a memo sent last week. AMP members – which include cities like Galion — own 23 percent of the Illinois plant, Prairie State Energy Campus, which was developed by Peabody Energy.
…’As many of you are already aware, Ohio Citizen Action Director Sandy Buchanan is reaching out to Prairie State Energy Campus participants via e-mail. She is forwarding a link to an article’ about the SEC investigation. ‘As a reminder, OCA is an anti-coal group with a long history of putting forward slanted and misleading information.’
Ohio Citizen Action has been a leading critic of Prairie State, documenting how the plant has suffered a series of budget overruns and delays, and how the cost of power from the plant will likely lead to rate increases for the communities that bought into it.
Addressing the memo, Buchanan said she doesn’t understand why AMP did not act until after she had contacted the cities.
‘It seems to me that AMP has an obligation to notify its members about something like this,’ she said.”
— Dan Gearino, Columbus Dispatch
link to article
read the AMP memo
Prairie State plant development under scrutiny

CLEVELAND — “Now, additional subpoenas have been issued to American Municipal Power — an Ohio-based non-profit corporation that owns and operates electric facilities including Prairie State.
Cleveland Public Power is among a number of utilities that are helping finance the bonds that built Prairie State.
Some on Cleveland City Council are concerned that the ongoing federal probe could result in increased costs to Cleveland ratepayers.”
— Ron Regan, newsnet5
link to article
 The demolition of American Municipal Power’s Richard H. Gorsuch Generating Station located on Ohio 7 is under way.
MARIETTA — “The demolition of American Municipal Power’s Richard H. Gorsuch Generating Station has been catching the eye of those driving on Ohio 7 south of Marietta, as the work has moved into a new phase.
The plant is located between Marietta and Belpre next to Eramet-Marietta.
AMP closed the facility after the U.S. Environmental Protection Agency and the U.S. Justice Department filed a suit in April of 2009 for violating the Clean Air Act.”
— Marietta Times
link to article

COLUMBUS — “American Municipal Power-Ohio has been given another 18 months to make a decision on its proposed power plant in Meigs County, WOUB reports.
The Ohio Power Siting Board in 2008 approved its plans to build a coal-fired power plant in southeast Ohio. A five-year time limit was placed on that approval.
AMP-Ohio backtracked and began planning for a natural gas generating plant, and now has until September 2014 to continue preparing for its ‘natural gas combine cycle facility.’”
The Ohio Environmental Council and the Sierra Club oppose the extension, saying the board can’t allow the move from a coal project to a natural gas project, WOUB reports.
— Evan Weese, Business First
link to article
Council member says city’s funding ratio for EDC ‘is not right’
 Martinsville City Council member Danny Turner
MARTINSVILLE, WV — “Turner often has voiced criticism of the citys decision several years ago to participate in power plant projects put forth by American Municipal Power (AMP), through which the city buys wholesale electricity.
Under contracts, the city is to buy power generated at the plants for about 40 years. But one of the plants the AMP Generating Station never came to fruition, and Martinsville owes almost $859,000 in development costs already incurred on the project.
The city got involved in AMP projects to try and keep its wholesale power costs lower than market prices, which were expected to rise over time.
But market prices have dropped. Turner said it seems the city would save money for at least 10 years by solely buying power on the market.
We need to get some answers … as to whats going on with AMP, its ceased power plant project and the wholesale market, he said. U.S. Rep. Dennis Kucinich, D-Ohio, has called for a federal investigation into deals involving investments in the Prairie State Energy Campus, another AMP project in which Martinsville agreed to take part.
Turner said he does not know if the city could get out of any contracts it has with AMP. But well have to pursue that if the an investigation alleges wrongdoing has occurred.”
— Mickey Powell, Martinsville Bulletin
link to article
 Galion and three other communities were represented in the audience during the meeting. Both citizens and City Council members were there.
GALION — “A public meeting about PSEC was held Sept. 19 inside the Galion High School gymnasium. Sandy Buchanan, executive director of Ohio Citizen Action, coordinated the public meeting with the help of Galion citizen Don Faulds. According to its website, OCA is a non-profit organization founded in 1975 and lobbies for pro-environment causes; it has a history of opposing coal plants.
Faulds welcomed everyone that evening, saying the purpose of the meeting was to get everyone on the same page as to what Prairie State is because Galion and the other participant communities had been having trouble with getting information.
‘I think by the end of tonight’s presentation, more people are going to understand what the concerns have been, why we have been so interested in getting to the bottom of this and what alternatives we have,’ Faulds stated.”
— Matt Echelberry, Galion Inquirer
link to article
 David Schlissel, an attorney and consultant on electric energy and environmental issues, makes a presentation during a public meeting at Galion High School on Wednesday.
GALION — “About 100 people filed into the Galion High School gymnasium Wednesday night to learn more about a controversial Aug. 29 report regarding the Prairie State coal-generated power plant.
Galion and Shelby have contracts with the company through American Municipal Power Ohio, pacts that may cost both communities. David Schlissel, an attorney and consultant on electric energy and environmental issues, presented the report, saying Galion could end up paying $8 million more than expected for electricity through the Prairie State Energy Campus plant, while Shelby could end up paying $3 million.
Schlissel’s projections are based on a report by the Institute for Energy Economics and Financial Analysis, an organization formed in 2011 to help communities move toward using sustainable energy and to decrease the use of coal and other non-renewable energy sources.”
— Kimberly Gasuras, Mansfield Journal
link to article
— Tonya Sams, Cleveland Plain Dealer
— Rep. Dennis Kucinich, U.S. House of Representatives
— Ron Regan, Channel 5 News
— GalionLive
CPP customers already on the hook for $19 million, 2.5 million households across eight states overpaying for electricity

CLEVELAND — “Congressman Kucinich (D-OH) is calling for a federal investigation into a series of deals surrounding investments in the Prairie State Energy Campus, a new coal power plant and related facilities in southern Illinois. A new report was released detailing how ratepayers in 217 municipalities across the Midwest, including Cleveland Public Power, will bear the exorbitant cost of deals that were designed to make the municipalities bear the risk of a new multibillion dollar coal plant.
In order to build a new coal plant in southern Illinois, the Peabody Energy Corporation looked past private investment because new plants are a known financial risk. Instead, they turned to regional power agencies like American Municipal Power, who, along with their member municipal agencies like Cleveland Public power, could fund them with bonds. Nine regional power agencies were convinced to become partial owners. The deals specified that the municipalities could get stuck funding the plant even if it never produced electricity.
Now, after foreseeable and preventable cost overruns and subpar performance, ratepayers are forced to buy electricity from the coal plant, known as the Prairie State Generating Company (PSGC) even though the cost of energy on the open market is much cheaper. Cleveland Public Power alone is now expected to pay at least $19 million more than if they had not invested in it. Congressman Kucinich is demanding an investigation from the Federal Energy Regulatory Commission (FERC) to protect the ratepayers from the mistakes of Peabody Energy Corporation and the regional power agencies.”
— Nathan White, press release, office of Congressman Dennis Kucinich
link to Congressman Kucinich’s letter to Federal Energy Regulatory Commission
— Dan Gearino, Columbus Dispatch
— Ron Reagan, Channel 5 News
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Letters supporting the Fracking Emergency Medical Right to Know Act 9,241 neighbors have sent handwritten letters and made personal phone calls urging state legislators to support the Fracking Emergency Medical Right to Know Act as of June 10, 2013.
Ohio coal-fired power plants
Letters to Senator Sherrod Brown and Senator Rob Portman 6,615 members have sent handwritten letters and petitions to Senator Brown urging him to support US EPA rules that will protect our health from polluting coal plants as of January 24, 2012.
3,751 members have petitioned Senator Portman urging him to support US EPA rules that will protect our health from polluting coal plants as of January 24, 2012.
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