Area pols cheer power-plant rebirth

The company said that development of the Meigs County site depends on the successful final negotiation of appropriate tax abatements, economic and infrastructure incentives, construction contracts and pricing, as well as a successful effort by AMP to subscribe the project to its member municipal electric systems.

On Aug. 19, a meeting was held for AMP generating station participants, who voted to pursue conversion of the AMP Generating Station project in Meigs County to a NGCC (natural gas combined cycle) resource to be developed under a lump-sum, turnkey, fixed-price contract.

AMP reportedly selected the Meigs County site near Letart Falls, previously the site of the organization's planned coal-fired facility, as the primary site for a self-build NGCC facility in April 2010.

"Policy-makers at the local, state and federal levels have indicated their support for a natural gas project in Meigs County, and we will work with them to finalize the abatements and incentives, including anticipated site infrastructure incentives from the state of Ohio," AMP President/CEO Marc Gerken said. "AMP and our members made some tough decisions in the past year, and I applaud their efforts, patience and confidence in each other and the organization they own."

A number of politicians praised the news after it was announced. U.S. Rep. Charlie Wilson, D-St. Clairsville, who represents both the Athens area and Meigs County, said the facility is a huge win.

"This facility means more jobs and more energy resources will be located right here in Meigs County," he said. "I have always maintained that our region is perfect for energy generation; we have the right experience and the right workforce for the jobs this plant will bring."

AMP announced that construction of the facility is slated to create more than 500 jobs, and AMP expects the operation of the plant to generate 28 permanent jobs. (The coal-fired plant proposal was slated to generate 1,000 jobs in construction, and 160 for operations.)

The hoped-for additional coal-mining jobs, expected to come about as a result of the previous coal-fired power plant proposal, obviously won't be a factor in the natural-gas power plant.

Wilson said that he understands that the development of the plant depends on the right combination of tax abatements and economic incentives.

"I will continue to do whatever I can to make this project a reality for our area," he said.

Other officials echoed this sentiment.

Ohio Gov. Ted Strickland said his administration stands ready to work with AMP to expedite the permitting process and to bring these jobs to Ohioans.

"I applaud AMP for choosing to build in Ohio," he said. "Their decision, on the heels of last week's news that Ohio's unemployment rates have declined for four months in a row and a recent Federal Reserve study that shows Ohio has the sixth-fastest growing economy, is another clear sign that businesses are investing in Ohio."

State Rep. Debbie Phillips, D-Athens, said she is thrilled that AMP is taking the next step in securing Meigs County as the site for this new facility.

"This facility will create jobs in the area, tap into a rapidly expanding market, and make use of our area's natural resources in a way that benefits surrounding communities," she said.

In November last year, AMP announced that the coal-fired plant previously planned for the site would have to be modified or cancelled due to big increase in the estimated cost of building it. This is when AMP announced it was looking into possibly building a natural-gas burning facility.

The company said that the contractor had increased its cost estimate by 37 percent between May and November 2009, making it economically unfeasible to proceed.

A wide range of environmental and citizens groups launched campaigns to challenge the AMP facility. National green groups The Sierra Club and The National Resource Defense Council teamed up with the Ohio Environmental Council and appealed pollution permits issued by the Ohio Environmental Protection Agency.

The EPA had issued AMP all the necessary permits to begin construction, and hearings on the environmentalists' appeals were still pending before AMP canceled the project.

The project also saw controversy over questions of air-quality issues and government support that increases Ohio's reliance on coal.

It's uncertain to what extent the environmental concerns will be mollified by the switch to natural gas.