"STORY IN YOUR EYES" moody blues
Someone in another post question if the residents got a "partial" hearing on our city fathers and mothers sending AMP-OHIO over 2.1 million dollars to if your honest, to stop the bleeding. There were a few comments from the front table that "we're saving the city money." All your saving is the interest on two million dollars waiting for a court decision that doesn't look to promising presently.
I and many others have had a hard time explaining what "stranded costs" meant? Plus the standard answer it's in litigation.
The ordinance claim that the payment be made at Council's request.. I'm guessing in executive session? Then it was shoved into the last ordinance of the year. No three readings. with the claim of it being an emergency.
Plain Dealer, News-Herald never questioned the administration on over two million dollar's leaving the city coffers?
Then on the front page of the little weekly paper the The Lake County Tribune an article written by Marian McMahon (no relationship to former city manager) entitled "Stranded costs to be paid upset residents" In it she told the story of the city's involvement with stranded costs.
She then took the time to explain in the article (Note: Regarding stranded costs: utility companies have argued, since they were required to build new electric plants to meet actual and future needs of customers but customers were no longer required to purchase electricity from a particular supplier, utilities building plants could not count on recouping their investments, which were then "stranded" Ohio law gives the utilities the chance to collect those stranded costs.)
Now AMP-OHIO talked us along with many other of their community members to finance a new electric generating plant in Meigs County, Ohio Other towns with municipal power like Painesville will finance as well as be customers of and AMP-OHIO will oversee building and operation of this plant. The cost of the plant tripled in cost leaving AMP-OHIO on the hook for costs? Well not really. Now because of the "take or pay" contract signed by Painesville with AMP-OHIO we as well as the other communities they are on the hook. Our share presently 2.1 million plus legal fees.
Now we can all say we all make mistakes....... At the same time AMP-OHIO with all this was going on AMP-OHIO got Painesville involved with another power plant Prairie State which was sold to Painesville as a "Turn Key ready operation."
Prairie State As best as I can figure out Painesville will send $200,000 per month to AMP-OHIO our cost of power will cost close to $58.00 per MWH. and we can use it at that high cost or sell it on the open market presently at $30.00per MWH.
I can't swear by these figures and getting information is near impossible. As you can see Painesville could lose a ton of money.
Speaking of money, Painesville's Electric Fund cut a check to AMP-OHIO for 2.1 million. Payed cash for the new substation 3.2 million and the Finance Director claims we still have over 12.2 million in the electric fund? Anybody but me thinking about being overcharged?
Last year we also sent out our number one turbine and had it reconditioned for over $250,000 O.K. why do that and not generate power at the Electric Plant. What does that staff do all day?
In the coming council meeting we as residents must ask the administration, "what's the plan?"
ALL HAVE A HAPPY AND EXPENSIVE NEW YEAR!