Craig Kleinhenz


AMP-Ohio News Room


AMP-OHIO PRESIDENT/CEO ACKNOWLEDGES OHIO GOVERNOR’S SUPPORT FOR ADVANCED COAL GENERATION
Release Date: 2009-06-09 
AMP-OHIO PRESIDENT/CEO ACKNOWLEDGES OHIO GOVERNOR’S SUPPORT FOR ADVANCED COAL GENERATION

For Immediate Release
June 9, 2009

Contact:
Kent Carson
Phone: 614/337-6222
Cell: 614/578-5389
kcarson@amp-ohio.org

AMP-OHIO PRESIDENT/CEO ACKNOWLEDGES OHIO GOVERNOR’S SUPPORT FOR ADVANCED COAL GENERATION
(COLUMBUS)—American Municipal Power-Ohio (AMP-Ohio) President/CEO Marc Gerken today praised the administration of Ohio Governor Ted Strickland for its support of the advancement of clean coal technology in the state and the AMP-Ohio project, which will bring significant jobs and economic development to the state. Governor Strickland and Ohio Air Quality Development Authority (OAQDA) Executive Director Mark Shanahan today announced a $30 million bridge loan to AMP-Ohio in support of the approximately $3 billion American Municipal Power Generating Station (AMPGS) project. The loan is from the advanced energy portion of the Ohio Bipartisan Job Stimulus Plan.

The AMPGS project, which is slated to begin construction fourth quarter 2009-first quarter 2010, is an approximately 1,000 MW coal-fired generation facility being developed in southern Meigs County. The facility will utilize Powerspan’s ECO SO2 ammonia-based scrubbing technology for state-of-the-art control of sulfur dioxide emissions with co-benefits for control of mercury and particulate matter. Powerspan also shows great promise for the ability to efficiently capture carbon dioxide in the future. A commercial pilot of their carbon capture technology is currently underway at the Burger plant. The AMPGS facility is being designed with the footprint and alignment of equipment to facilitate future carbon capture. The $3 billion investment will bring 1,600 construction jobs to the state during the four-and-a-half-year construction cycle; and 165 permanent operating jobs. The AMPGS facility will bring more than $20 million annually in to greater Meigs County economy.

“The AMPGS project is a clean coal technology project that will be the first large-scale commercial deployment of Powerspan ECO SO2 technology,” Gerken said. “The support for this project, and its use of Powerspan technology, shows tremendous foresight and a commitment to develop technology that will responsibly use coal as an affordable and reliable fuel source. The AMPGS project is being developed as a part of a diversified generation asset development effort that also includes the development of more than 380 MW of new run-of-the-river hydroelectric generation, as well as other renewable resources. The AMPGS project will be the cleanest facility of its type in the region and one of the cleanest in the nation. The use of Powerspan not only gives us the ability to control emissions to best available control technology (BACT) standards, but will significantly reduce the amount of waste coming from the facility. AMPGS creates jobs and represents a major investment in the State of Ohio and the Meigs County area. This is a good project and we appreciate the support and acknowledgement of the state,” Gerken said.

The Powerspan ECO SO2 system is ammonia-based as opposed to the more traditional limestone-based scrubbing systems. The process yields an ammonium sulfate byproduct that will be processed into a valuable fertilizer. AMP-Ohio has a memorandum-of-understanding with Maumee, Ohio based The Andersons Corp. to supply urea as feedstock and process and market the fertilizer product.

A total of 81 AMP-Ohio member communities are participating in the AMPGS project, including 69 Ohio communities, which collectively serve more than 300,000 Ohio customers. These business and residential customers will benefit from the reliable and stabilized power supply cost provided from the power plant. The AMPGS facility is scheduled to begin commercial operations in 2014 and will provide stable power supply to AMP-Ohio members’ business and residential customers.

######

About AMP-Ohio – AMP-Ohio is the Columbus, Ohio-based nonprofit wholesale power supplier and services provider for 128 member municipal electric systems in Ohio, Pennsylvania, Michigan, Virginia, West Virginia and Kentucky. The organization provides a diverse mix in its wholesale generation resources, which in addition to fossil fuel, includes wind, hydroelectric, landfill gas and distributed generation. www.amp-ohio.org

 


AMP-OHIO EMPLOYEE CRAIG KLEINHENZ RECOGNIZED FOR EFFORTS
Release Date: 2009-05-29 
AMP-OHIO EMPLOYEE CRAIG KLEINHENZ RECOGNIZED FOR EFFORTS

For Immediate Release
May 26, 2009
Contact: Kent Carson
Phone: 614/337-6222
Cell: 614/578-5389
kcarson@amp-ohio.org

AMP-OHIO EMPLOYEE CRAIG KLEINHENZ RECOGNIZED FOR EFFORTS
(COLUMBUS)—Power Supply Planning Engineer Craig Kleinhenz was recognized May 19 as American Municipal Power-Ohio’s 2009 “AMP-Ohio DNA Award” recipient. Marc Gerken, AMP-Ohio president/CEO initiated the annual award last year to recognize an employee who advances AMP-Ohio’s vision and mission as established through its strategic planning process. AMP-Ohio’s vision is “To be public power's leader in wholesale energy supply,” and its mission is “To develop, manage and supply diverse, competitively priced, reliable wholesale energy to public power through strategic partnerships and member-focused relationships.”

To accomplish its vision and mission, AMP-Ohio employees must believe in, and demonstrate, the core values of the organization: cooperation, integrity, innovation, action-oriented, effective communication and member focused. These values serve as the organization’s “DNA” and are a critical foundation to its ability to succeed and serve member communities. As such, Gerken believed it appropriate to establish a program that would recognize employees who best demonstrate the values/DNA of AMP-Ohio as a way to highlight to both its staff and members the importance of the key organizational criteria it strives to meet.

This year, Gerken asked the staff to nominate their fellow workers for the award. They were asked to provide not just a name, but the reasons why their nomination should receive the award. “Among those nominated, several received more than one nomination, making my task of selecting the winner even harder,” Gerken said at a full staff meeting, where the selection was announced.

Kleinhenz, a native of Wilmington (Ohio), came to AMP-Ohio in 2005 as a power coordinator and moved to his current position later that year. As a power supply planning engineer, he completes project development studies that examine generation and transmission options for the organization and member communities, and implements and manages projects. Kleinhenz is a graduate of Ohio State University with a degree in mechanical engineering, and is enrolled in the MBA program at Capital University. He currently lives in the Columbus suburb of Hilliard.

Kleinhenz said he was genuinely surprised to receive the award, noting that there were other employees he was thinking of as Gerken listed the nominee’s attributes before announcing the recipient. “Obviously, I’m very pleased to get an honor like this from my peers,” he said.

######

About AMP-Ohio – AMP-Ohio is the Columbus, Ohio-based nonprofit wholesale power supplier and services provider for 126 member municipal electric systems in Ohio, Pennsylvania, Michigan, Virginia, Kentucky and West Virginia. The organization provides a diverse mix in its wholesale generation resources, which in addition to fossil fuel, includes wind, hydroelectric, landfill gas and distributed generation. www.amp-ohio.org.

 


ZELIENOPLE, PENNSYLVANIA IS NEWEST AMP-OHIO MEMBER COMMUNITY
Release Date: 2009-05-28 
ZELIENOPLE, PENNSYLVANIA IS NEWEST AMP-OHIO MEMBER COMMUNITY

For Immediate Release
May 26, 2009
Contact: Kent Carson
Phone: 614/337-6222
Cell: 614/578-5389
kcarson@amp-ohio.org

ZELIENOPLE, PENNSYLVANIA IS NEWEST AMP-OHIO MEMBER COMMUNITY
(COLUMBUS)—The Borough of Zelienople, Pennsylvania is the newest member community of American Municipal Power-Ohio (AMP-Ohio) following action this week by the organization’s Board of Trustees. The addition of Zelienople brings AMP-Ohio’s total membership to 127 with 29 member communities in Pennsylvania.

AMP-Ohio will become the wholesale power supplier for the borough’s approximately 2,200 customers on July 1, 2010, when Zelienople’s existing contract with another energy supplier expires. The community has a peak demand (the highest total amount of electricity used at any one time) of approximately eight megawatts.

The Borough of Zelienople is approximately 25 miles north of Pittsburgh and within 15 miles of current AMP-Ohio member communities Ellwood City and Wampum. Ellwood City was the first Pennsylvania community to become an AMP-Ohio member in 1998.

“We look forward to working with Zelienople,” said AMP-Ohio President/CEO Marc Gerken. “AMP-Ohio now has more than a decade of working with western Pennsylvania communities. Further, our more than 35 years of experience as a nonprofit power supplier for municipal electric systems will complement the borough’s work on behalf of its residents. The economies of scale created by the further expansion of our membership benefits everyone in terms of power supply planning and dispatch services.”

######

About AMP-Ohio – AMP-Ohio is the Columbus, Ohio-based nonprofit wholesale power supplier and services provider for 126 member municipal electric systems in Ohio, Pennsylvania, Michigan, Virginia, Kentucky and West Virginia. The organization provides a diverse mix in its wholesale generation resources, which in addition to fossil fuel, includes wind, hydroelectric, landfill gas and distributed generation. www.amp-ohio.org.

 


APPA Letter to Eric Solomon, Assistant Secretary for Tax Policy, on Tax-Exempt Bonds
Release Date: 2008-06-27 
APPA Letter to Eric Solomon, Assistant Secretary for Tax Policy, on Tax-Exempt Bonds

American Public Power Association
1875 Connecticut Ave, NW
Suite 1200
Washington, DC 20009


June 19, 2008


Mr. Eric Solomon
Assistant Secretary for Tax Policy
Department of the Treasury
1500 Pennsylvania Ave., NW, Room 3120
Washington, DC, 20220

Dear Mr. Solomon:

The American Public Power Association (APPA) appreciates the opportunity to respond to a letter you recently received from William Thompson, Comptroller of the City of New York, regarding tax-exempt financing for coal-fired power plants. APPA is the national service organization representing the interests of the more than 2,000 state and locally-owned electric utilities collectively serving over 45 million Americans.

We strongly disagree with Mr. Thompson’s characterizations of the assumptions, analyses, and activities of public power utilities in planning and constructing new coal-fired power plants. His letter has much more to do with advocacy for a certain perspective on the issue of global climate change than it does with federal policy on the use of tax-exempt financing.

As you know, public power utilities, as units of state and local government, use tax-exempt bonds to construct and improve the infrastructure necessary to provide electricity. Such infrastructure includes generation facilities as well as transmission and distribution lines. Continued access to tax-exempt bonds is critical for public power utilities to continue to provide such services in a cost-effective manner to their customers. As the demand for electricity continues to grow, new generation and transmission facilities will be increasingly important. The Energy Information Administration estimates electricity demand will increase 30% by 2030.

The municipal bond market has consistently been low-risk and reliable and remains so today. All three major credit rating agencies continue to say that the outlook for the public power sector is stable and its credit ratings are strong. For example, in October of 2007, Fitch said that its average public power system rating is “A” for utilities selling at wholesale and “A+” for those utilities providing retail service. Moreover, this strong performance stands in stark contrast to the difficulties faced in recent years by many investor-owned utilities and independent power producers.

APPA and its members understand that future climate change legislation could affect the cost of coal-fired electricity. In today’s political climate, the uncertainty of federal regulation and cost will affect all sources of power. Nuclear, natural gas, hydropower, wind, solar and coal all have risks and uncertain costs associated with their use in electricity production. However, limitations on state and local governments’ ability to fund power plants through tax-exempt financing would require other methods of raising revenues to offset increased financing costs, (increased property, sales, and other local taxes), and/or a reduction in essential services—an unacceptable option when that service is electricity.

Mr. Thompson cites the fact that the Rural Utilities Service (RUS) has suspended low-interest loans to rural electric cooperatives for coal-fired power plants. However, that is because RUS lacks a mechanism to reflect the risks associated with such plants. These risks for public power utilities, though, are already taken into account and determined by credit rating agencies. Thus, if a project was very high risk, a local government would have great difficulty securing financing. In addition, the very principles of local control – open meetings and decision-making, public disclosure of information, and accountability to locally elected officials – mitigate high-risk outcomes.

American Municipal Power (AMP)-Ohio, the entity mentioned in Mr. Thompson’s letter, carefully considered the cost of potential CO2 regulation as part of its planning and feasibility analysis for the coal-fired plant it is proposing. Fitch gave AMP-Ohio’s project revenue bonds a rating of “A” in May 2008.

Public power utilities are not wedded to one source of energy, and, in fact, most rely on a diverse portfolio of resources. AMP-Ohio is a case in point. In addition to the coal-fired plant they are proposing, they are also investing in wind energy and additional hydropower. At the same time, in some areas of the nation coal is the most affordable and abundant option. Our members’ first priority is serving their customers in a reliable and cost efficient manner.

Given all of the reasons cited above, we do not believe it is necessary for Treasury to conduct a review of the risks associated with tax-exempt bonds. We appreciate your help in the past on issues related to public power and we thank you for your time and attention to this matter.

Sincerely,

Mark Crisson
President & CEO

 


Bond Sale For AMP-Ohio Portion Of The Prairie State Project A Success
Release Date: 2008-06-20 
Bond Sale For AMP-Ohio Portion Of The Prairie State Project A Success

For Immediate Release

June 20, 2008

Contact:
Kent Carson
614/337-6222
614/578-5389 (cell)
kcarson@amp-ohio.org

BOND SALE FOR AMP-OHIO PORTION OF THE PRAIRIE STATE PROJECT A SUCCESS


American Municipal Power-Ohio (AMP-Ohio) sold long-term, fixed-rate bonds for the Prairie State project to investors June 18-19. The bonds provided capital for AMP-Ohio’s portion of the Prairie State Energy Campus (PSEC) project currently under development in southern Illinois.

Retail sales took place June 18 and institutional sales on June 19. At close, bond sales raised approximately $761 million, with $97 million coming from retail sales and the remainder from institutional sales. Orders were received totaling over $962 million but were limited to the $761 million in order to assure levelized debt service for the participants. The bonds carry an A rating across the board with rating agencies with an interest rate of approximately 5.22 percent. This falls below the interest rate estimates in the feasibility study developed for the Prairie State project of 5.5 percent.

“This was certainly a great day for AMP-Ohio and for public power,” said AMP-Ohio Chief Financial Officer Robert Trippe. “We were able to raise significant capital for this important project in a volatile credit market. The tremendous investor interest demonstrates an acceptance of coal-fired generation projects by Wall Street. Our strong credit rating and the efforts AMP-Ohio has put forth through the years developing relationships with financial institutions and mutual fund managers has paid off, and our credit scoring program, which enhances the financial stability of our member communities, was recognized by the rating agencies and investors. I want to recognize the efforts of JP Morgan Securities of New York for the job they did for us in underwriting and pricing.”

More than 80 AMP-Ohio member communities are participating in the PSEC project.

#####################

 


Draft Permits For AMPGS Facility Issued by Ohio EPA
Release Date: 2008-06-18 
Draft Permits For AMPGS Facility Issued by Ohio EPA

For Immediate Release

June 18, 2008

Contact:
Kent Carson
614/337-6222
614/578-5389 (cell)
kcarson@amp-ohio.org

DRAFT PERMITS FOR AMPGS FACILITY ISSUED BY OHIO EPA


The Ohio Environmental Protection Agency (OEPA) has released a draft permit-to-install (PTI) for the American Municipal Power Generating Station residual solid waste landfill (AMPGS Landfill) and the draft National Pollution Discharge Elimination (NPDES) permit for the facility. AMPGS, an approximately 1,000-MW, coal-fired generating facility proposed to be located in Meigs County, Ohio, by American Municipal Power-Ohio (AMP-Ohio) and project partners Blue Ridge Power Agency and Michigan South Central Power Agency, will supply power to customers in five states.

The Landfill PTI must be obtained from the OEPA before a residual solid waste area for the AMPGS plant can be established. AMP-Ohio filed the application for this permit on May 4, 2007. AMP-Ohio hosted a public informational meeting on the application, as required by the OEPA permit process, on June 4, 2007 in Meigs County. and a second public information meeting in Meigs County on April 16, 2008. The AMPGS Landfill will receive non-hazardous combustion and process generated waste material from the electric generating facility, primarily fly ash and bottom ash. No hazardous or infectious waste will be placed in the landfill. The total area permitted for waste disposal is approximately 133 acres divided into several phases of development.

The NPDES permit is required for any discharge of treated wastewater from the AMPGS facility. AMP-Ohio filed the application for this permit on May 4, 2007.

“The AMPGS facility continues to move forward on schedule,” AMP-Ohio President/CEO Marc Gerken said. “Receipt of these two draft permits is another milestone in the development, and while we still have a long way to go, we remain proud of this project and the significant progress we’ve made to date. We are also grateful for the tremendous support this project and AMP-Ohio have received from Meigs County, it is truly appreciated.

OEPA has scheduled public information session/public hearing on both permits on August 5, 2008 at the Southern Elementary School. Information about the draft permits, hearing and public comment period is available at the OEPA Southeast District Office, (740) 358-8501.

The estimated $2.9 billion AMPGS facility will require approximately 1,600 construction workers at peak and approximately 150 full-time employees once in operation. The facility is conservatively projected to bring approximately $20 million to the local economy on an annual basis.

In June 2007, AMP-Ohio announced its commitment to the use of Powerspan ECO-SO2 emissions control technology on the proposed AMPGS. Developed and patented by Powerspan Corp., the ECO-SO2 technology achieves outlet emissions levels at or below those of best available control technologies and produces a valuable fertilizer co-product instead of the synthetic gypsum produced from traditional limestone scrubbing technologies. The AMPGS facility will use the ECO-SO2 technology to control sulfur dioxide emissions with co-benefits for control of mercury and particulate matter. The Powerspan system will be designed with features that allow for future expansion to make the plant CO2 capture ready. Carbon capture with the Powerspan process is going to be tested later this year at FirstEnergy’s RE Burger plant and AMP-Ohio is participating in that study.

The OEPA issued the final air permit-to-install for the facility in February, 2008 and the Ohio Power Siting Board issued the Certificate of Environmental Compatibility and Public Need in March.

###########

 


AMP-Ohio Closes On Equity Ownership of Prairie State Project
Release Date: 2007-12-31 
AMP-Ohio closes On Equity Ownership of Prairie State Project

For Immediate Release
December 20, 2007
Contact: Kent Carson

614/337-6222
614/578-5389 (cell)
kcarson@amp-ohio.org

AMP-OHIO CLOSES ON EQUITY OWNERSHIP OF PRAIRIE STATE PROJECT

(COLUMBUS) American Municipal Power-Ohio (AMP-Ohio) has finalized arrangements for an equity ownership of the Prairie State Energy Campus. AMP-Ohio has completed a transaction with Peabody Energy to purchase 368 megawatts of the project, which includes an additional 68 megawatts of power, more than 23% of Prairie State’s generating capacity. Project ownership of the 1,600 MW supercritical power plant is fully subscribed. The effective date of the transaction is December 20, 2007.

“Participating in Prairie State is core to our strategy of securing a clean, low-cost, long-term supply of electricity to serve our 123 member communities,” said AMP-Ohio President and CEO Marc S. Gerken. “The addition of this new base load electric generation is critical to meeting our customers’ demand for reliable, affordable power and gives our organization its strategically needed base load capacity in the MISO territory.”

The Prairie State equity partner group includes the Illinois Municipal Electric Agency (IMEA), Indiana Municipal Power Agency (IMPA), Kentucky Municipal Power Agency (KMPA), Missouri Joint Municipal Electric Utility Commission (MJMEUC), Northern Illinois Municipal Power Agency (NIMPA), Prairie Power Inc. Southern Illinois Power Cooperative (SIPC) and Peabody Energy subsidiary Lively Grove Energy Partners.

Prairie State is a planned 1,600 megawatt supercritical electricity generating station that will be among the cleanest U.S. coal-fueled power plants generating low-cost electricity to more than 2.5 million people throughout the Midwest and eastern United States. The power plant will begin operation in the 2011-2012 timeframe.

The engineering, procurement and construction management (EPCM) contractor, Bechtel Power Corporation, was given full notice to proceed with construction on October 1, 2007. Development and construction of the multi-billion Prairie State Energy Campus will occur in phases, beginning with the civil work, which will be followed by the mechanical and electric work. Initial hiring has already begun and will continue through its peak of more than 2,300 in the second quarter of 2010.

######

 


 

© Copyright 2005 - AMP-Ohio, All Rights Reserved.