AMP, FirstEnergy decide not to build 873-MW peaking plant
Originally published May 9, 2013
|American Municipal Power Inc. and FirstEnergy Corp. have decided not to proceed with plans to jointly develop an 873-MW natural-gas fired peaking plant in Ohio, the utilities said May 7. AMP cited "uncertainty regarding a number of issues, several of which could affect AMP's financing for the project." As an example, "the future of tax-exempt and tax-advantaged financing is in question" and some of AMP’s projects have already seen increased interest costs because of the federal sequester, the joint action agency said.
"We appreciate our excellent working relationship with FirstEnergy and look forward to a continued business relationship with them," AMP President and CEO Marc Gerken said. "This project had a lot of positives and some challenges, but the financial uncertainty today, on top of continued regulatory uncertainty, heavily impacted AMP's decision."
The nonbinding memorandum of understanding between the two utilities called for FirstEnergy to supervise construction of four combustion turbine units that would be capable of producing 873 MW. AMP was to provide the construction financing and own 75 percent of the generation output upon completion, while FirstEnergy would fund and own the remaining 25 percent.
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