Wednesday, August 29, 2012

"SECRETS" one republic

Yes, there is a lot of speculation as to the city manager's abrupt retirement. The following report might or might not shed some light on recent events. Maybe she just doesn't want to hear about electricity anymore?

The next time Ward III Councilman Mike DeLeone claims he has no idea where this 30% increase in electricity cost idea's are coming from direct him to this article.

The full report  "Promises vs. Reality can be viewed at;

www.prairiestatecoalplant.org

This will explain the whole story Painesville bought in the same amount as Galion.


Report: 12 AMP power customers in Ohio to pay $135 million extra


By Dan Gearino


The Columbus Dispatch Wednesday August 29, 2012 1:56 PM

Zbigniew Bzdak
Chicago Tribune


Miners drive down to the Lively Grove coal mine near Marissa, Ill., during a shift change. The mine is operated by Prairie State Generating Co. and provides fuel to an adjacent power plant.

A dozen Ohio communities will pay a premium totaling $135 million for electricity because of contracts with an Illinois power plant, according to a new report.

The figure is an estimate of how much money the cities – including Cleveland, Bowling Green and Galion – will pay for power in excess of market prices between now and 2025.

Residents in those places are paying for Prairie State Energy Campus in southwestern Illinois, a coal-fired power plant that began operating this summer. American Municipal Power of Columbus owns 23 percent of the plant and has sold shares to 60 of its member communities in Ohio.

“Participation in the Prairie State project has created and will continue for the long term to create significant fiscal problems and stresses for the participating communities,” said the report, issued today by the Institute for Energy Economics and Financial Analysis, a pro-environment group that looks at the finances of the coal industry.

The report’s authors say the dollar figure is a conservative estimate based on disclosures about Prairie State and forecasts of market prices. They did not specify how the costs may affect customer rates, because those decisions are based on factors that can vary considerably from city to city. As with any estimate, the actual outcome could be much different from the report’s conclusions.

Galion, in Crawford County, is the participant closest to central Ohio. It purchased 10 megawatts from Prairie State and faces an excess cost of $8 million, the report says.

“In hindsight, it is clear that municipal utilities should not be involved in risky utility speculation,” said Roberta Wade, a Galion City Council member. She made the comments in a conference call organized by the group behind the report.

AMP did not have an immediate response. Previously, the company’s executives have said they are confident that investing in Prairie State is in the best interests of its members, and that the long-term benefits will outweigh any concerns.

Environmentalists have been critical of Prairie State because it uses coal at a time when the rest of the electric power industry is moving to use more natural gas and renewable energy. The Energy Information Administration reports that Prairie State was the only new coal plant in the country to come online so far this year.

The plant was started by Peabody Energy, a coal company, which then sold nearly all of its interest to municipal-power companies in several Midwestern states. AMP, which provides power to city-owned utilities, owns the largest share.

In Ohio, the 12 communities with the largest investments in Prairie State will pay a premium of $135 million, the report says.

Bowling Green and Hamilton bought the largest shares, with 35 megawatts each. They will pay $27 million each for power in excess of market prices, according to the report.

Cleveland, which bought 20 megawatts, will pay $19 million.

In April, the Dispatch reported about how the plant was behind schedule, over budget, and would sell power for prices in excess of the cost on the market. Supporters of the plant got cities to buy into the deal by saying it would produce power as stable prices that would often be lower than the market.

dgearino@dispatch.com

@dispatchenergy

19 Comments:

At August 29, 2012 at 8:08 PM , Anonymous Anonymous said...

What REALLY ticks me off about this debacle is that countless citizens spoke out to council and McMahon over and over and over again not to get us into this horrible mess. We TOLD them it was a horrible idea. We begged them not to do it. But they went right ahead--and were so cocky about the whole thing that Hada threw it in our faces when he voted "yes" by "proudly" voting yes to yet another mistake that will cost us millions and millions for many years to come--how many?--50, isn't it?--or 40?

Stupid people doing stupid things and again everyone else in Painesville has to pay for their horrendous mistakes.

The questions are starting to come out into the public, and I think McMahon is getting out while the getting is good--before the news people are following her with their cameras. Her, Hada and his bunch (and let's not forget former councilpersons Abby Delamotte and Bill Horvath who went along with them and invited all the illegals into our town)have trashed this city so badly that it is unrecognizable, and I do believe that they have ruined it forever.

Leave a forwarding address, Rita. We may have some further questions for you.

 
At August 30, 2012 at 5:29 AM , Anonymous Anonymous said...

That was well done, and I thank you for taking the time to do that. This has been a difficult issue for people to grasp. As the EPA issues newer regulations it is hard to think Painesville will still generate. The price to purchase on the "grid" is much lower than what Painesville can generate for. "power cost adjustment" on your bill, anyone ever ask about that? It is supposed to cover an increase in cost to the city. But when the plant stops generating, which is most of the time, and buys off the grid at a much lower cost than what the plant can produce, why are we still paying for this adjustment? It is a built in money maker. There is no logic here at all, try calling the utilities office for an explanation, and you will be passed around more than your patience can take.

 
At August 30, 2012 at 5:54 AM , Anonymous TERM>> said...

Two really good comments. Our powerplant can very easily be converted over to natural gas. {It has already been run on natural gas} We could use our plant for peak demand and purchase off the grid. With that said the Prairie State and the AMP-OHIO 2015-@)@) deal limits what we can purchase on the open market.
If city hall was honest the "power factor" portion of the bill should be renamed the "McMahon-Hada Factor".
Explaination? There is no explanation,pay the lady.

 
At August 30, 2012 at 6:03 AM , Anonymous Anonymous said...

Only one flaw in all this .When Romney gets elected in November all theses clean-air regulations will be revoked. There is no proof of man made climate change. Then coal will be king again11 , enough wind and solar from you tree huggers.

 
At August 30, 2012 at 6:32 AM , Anonymous Anonymous said...

Just a wild guess here. When they formulated the price we will pay for electricity from this plant did the include all the money we have already sent them? $100,000 per month when we didn't receive any power? What a legacy to leave us with.

 
At August 30, 2012 at 6:53 AM , Anonymous TERM>> said...

6:03 Only afew flaws with your thinking. President Obama's regulations isn't what's killing coal it the dramatic drop in natural gas,No, miners, transportation costs ect. That's what's killing coal. Lets just say I hope your right but I believe your wrong about climate change.
Within 20 years solar will be powering your home, I'll bet on it.
6:32 No it wasn't if you read the whole article promises vs. reality it will explain that. Now do we take that payment over the first year or the life of the plant? Whatever presently over $500,000 has been spent.
All Prairie State calculations are based on the plant running at 85% efficiency. Wonder what it's presently running at?

 
At August 30, 2012 at 7:06 AM , Anonymous Anonymous said...

The real fun has not even started on the Prairie State boondoggle.

It starts in January 2013 when the full bill comes due and everyones electric rates explode.

TERM ... You should have used the song " YOU PICKED A FINE TIME TO LEAVE ME LUCILLE " in concerning RITA leaving ... the head rat is jumping off the ship right before it goes under.

 
At August 30, 2012 at 7:17 AM , Anonymous Anonymous said...

DeLeone has no idea ?


There's a shocking statement .. LOL

Perhaps if DeLeone would get his head out if his caboose and quit drinking the AMP koolaid he might find out.

Living in candyland such as he does must be great.

 
At August 30, 2012 at 9:30 AM , Anonymous TERM>> said...

7:06 Great song idea, something tells me I will be able to use it in the future. I kept leaning to "Just walkaway Renee" something about the empty streets reminded me about downtown.
Mr. DeLeone should open his eyes and quit playing lawyer on council, Mike we already have Mr. Gurley remember?
Want to creat a mess? Put to attorneys at the same table.

 
At August 30, 2012 at 9:36 AM , Anonymous Kathy Sak said...

Term, just a thought: what's killing our coal-burning plants are the new EPA regulations on air quality and emissions. Most plants find updating their burners, etc. too costly, so they are either going to buy their power or convert if they can to gas. Converting to gas ain't a dream either, and in some instances it just can't be done. Might as well scrap the plant and rebuild. Pres. Barack Obama has publically taken credit for the new EPA rules on clean air.I'm not weighing in on whether this is good or bad - just saying.

 
At August 30, 2012 at 10:34 AM , Anonymous Anonymous said...

A couple of factors that have been overlooked on the PRAIRIE STATE boondoggle.

Future EPA mandates that will likely come along in the 30 year life span of the money pit.. may end up making it obsolete and worthless .. yet all the communities will still be paying for it.

The UMW Union and very long history of strikes .. they may not be as powerful as they once were .. but they still wield enormous power concerning underground facilities such as the one at PRAIRIE STATE.

 
At August 30, 2012 at 12:55 PM , Anonymous TERM said...

Kathy I have been told the Painesville Plant can switch over and we have burned gas in the past.
I have a story to tell you about mine workers.
Recently Mitt Romney visited the Murray Energy Century Mine owned by a Pepper Pike firm.
According to CFO Rob Moore "Rally attendance was mandatory but one one was forced." (what does that mean?)
This along with no miners getting paid on that day because employee's who voluntarily attend political events do not get paid.
Wonder if Robby got paid on that day?
Welcome to the new America people. Oh, and the mine is non-union.
Where is John L. Lewis when you need him?

 
At August 30, 2012 at 4:23 PM , Anonymous Kathy Sak said...

Ahhhh - I got nothing. I'm folding.

 
At August 31, 2012 at 8:33 AM , Anonymous Anonymous said...

September 19th, 2012 7:00 pm

Galion Ohio .. Galion High School

TOWN AMP-OHIO - PRAIRIE STATE MEETING

chaired by Sandy Buchanan of Ohio Citizens .. the group behind the PRAIRIE STATE COAL PLANT TRACKER

All the cards and all the information will finally be laid out on the table for the entire community to hear and see.

PAINESVILLE residents are more than welcome to come to this event.

Media sources and outlets from around Ohio will be there to report from it.

 
At August 31, 2012 at 1:53 PM , Anonymous Anonymous said...

Galions very own Village Idiot insist PRAIRIE STATE is a GREAT DEAL

http://www.wmfd.com/local-news/single.asp?story=51775

How much cash did Kent Carson from AMP bring this time ?

 
At August 31, 2012 at 4:51 PM , Anonymous Anonymous said...

Now that McMahon is leaving, one of the first things on the menu to look at should be the "power cost adjustment." This is an outrageous charge and we need some serious information about it, and then we need to see what the city REALLY needs from us for electricity, and we need to pay only that. If Hada cannot explain it well enough, or explain the whole charge of it, then whatever he cannot reasonably explain goes away. Enough of this back-alley stuff already. We need to know exactly what we are paying and exactly what we are paying it for.

I also hope that what is going on in Galion helps us here. I for one really appreciate the people who are fighting in Galion, and I think it will help us, too. We need to get federal investigators in here to sort out what in the world AMP did to us, and how we can get out of it. Crooks by any other name...

 
At September 1, 2012 at 10:59 AM , Anonymous Anonymous said...

PCA ( power cost adjustments ) allows AMP to claim they are selling power to communities at one cost, but actually are charging a much higher costs.

It's great scam they have going.

 
At September 4, 2012 at 6:06 AM , Anonymous Anonymous said...

The report in black and white

http://ieefa.org/report-with-cost-of-electricity-up-to-double

 
At September 5, 2012 at 12:25 PM , Anonymous Anonymous said...

Huge Plain Dealer story today ..

what took them so long ?

http://www.cleveland.com/metro/index.ssf/2012/09/cleveland_public_powers_contra.html

 

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