CLEVELAND — Sixty-eight municipal members of AMP (American Municipal Power) are participating in the Prairie State Coal plant. These communities signed “take-or-pay” contracts for a total of 368 megawatts of power from the plant (one megawatt equals 1,000 kilowatts).
Beginning in March 2012, AMP has been charging the communities a monthly amount of $20.22 per kilowatt of power for Unit 1 of Prairie State. Because the plant is supposed to have two units, these charges amount to a formula of $20.22 x the total number of kilowatts for the municipality x .5.
So, for example, the City of Painesville, with 9,952 kilowatts contracted for Prairie State, is being charged $100,614.72 per month. ($20.22 x 9,992 x .5).
Attached is a chart of the monthly charges for each AMP community.
Over the past few months, AMP’s Board of Directors has made several changes to how they will charge the communities. The most recent communication, dated May 17, 2012, says they will charge them $20.22/kw/month until Unit 1 becomes commercially operational. The memo states they will charge a “demand rate” of $24. 566 /month/kilowatt when Unit 1 becomes operational. The ”demand rate” is a component of the “postage stamp rate” that the communities are obligated to pay for the power from the plant.
The May 17, 2012, memo says that Bechtel will pay liquidated damages because the plant is behind schedule, but it does not explain what is covered in the liquidated damages and what is not, and does not explain what is included in the monthly charges for the communities. It also gives no start date for Unit 1.
— Sandy Buchanan, executive director, Ohio Citizen Action