COLUMBUS, OH — “The report stated that a $900 million cost overrun to build the plant helped balloon prices well above the market rate for electricity. Contracts signed by American Municipal Power, a co-op representing cities in six states, and other utility companies also had exposed 82 municipalities to debt costs for the plant before it was even operational.
Wade said Galion had no business speculating on energy prices.
‘In hindsight, it is clear that municipal utilities should not be involved in risky energy speculation,’ she said. ‘Private investors can certainly make the decision to invest in energy speculation, but it is just not appropriate to gamble with the public’s money.’
The plant’s adjoining coal mine was supposed to cut transportation costs, but IEEFA’s report claims the mine will not have 30 years’ worth of coal to supply Prairie State. Once the mine is closed, municipalities could be on the hook for eight years of debt service on the coal reserves, as well as the cost of a new coal source.”
— Jon Cassidy and Carten Cordell, Ohio Watchdog.org