The Star Beacon; Ashtabula, Ohio

World, nation, state

May 9, 2013

AMP, FirstEnergy cancel plans for Eastlake power plant

American Municipal Power and FirstEnergy are scrapping plans to jointly build a gas-fired power plant in northeastern Ohio because of increases in financing costs.

The Eastlake project, announced in November, was going to generate power during periods of peak demand, meaning it would only operate on the hottest days of the year.

AMP, which is based in Columbus, is blaming federal budget cuts, which are reducing some of the financing advantages available to the city-owned utilities that AMP serves.

“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,” said Marc Gerken, AMP’s president and CEO, in a statement.

Under the November agreement, AMP was going to use its access to inexpensive financing to pay for the 873-megawatt plant and then receive 75 percent of the electricity output. FirstEnergy, based in Akron, was going to do the construction and then later buy a 25-percent share of the plant.

“With them not able to get the financing to get it off the ground, it’s just not moving forward,” said Mark Durbin, a FirstEnergy spokesman. “It was a good project, but it’s not going to work this time.”

The financing issues arise from the so-called sequester, a series of budget cuts that took effect in March. Among the cuts was the amount of the subsidy for Build America Bonds and other bonds that cities can use to help finance power plants.

In addition to the direct hit from cuts in subsidies, there are is the potential for indirect effects, as budget cuts are passed down to the states, said Rachel Barkley, municipal credit analyst at Morningstar

“When states get affected, we get some trickle-down to the local level,” she said.

AMP said in its news release that some of its already-funded projects have seen increases in costs because of the budget cuts. It did not list any specific projects.

1
Text Only
World, nation, state
  • GROUNDED U.S., other countries ban flights to and from Israel

    A Hamas rocket exploded Tuesday near Israel’s main airport, prompting a ban on all flights from the U.S. and many from Europe and Canada as aviation authorities responded to the shock of seeing a civilian jetliner shot down over Ukraine.

    July 23, 2014

  • REPORT: Retaliation by supervisors common at VA

    A pharmacy supervisor at the VA was placed on leave after complaining about errors and delays in delivering medications to patients at a hospital in Palo Alto, California. In Pennsylvania, a doctor was removed from clinical work after complaining that on-call doctors were refusing to go to a VA hospital in Wilkes-Barre.

    July 22, 2014

  • Veteran's Ducks Iraq vet cited for owning 14 therapeutic pet ducks

    An Army veteran who hurt his back during the Iraq War is worried a citation will result in him losing his 14 pet ducks, which he says are therapeutic.

    July 21, 2014 1 Photo

  • Stacked Apartment.jpg New York building shows how mod design stacks up as cool

    In a city piled high with ambitious architecture, a seven-floor structure off the beaten path boasts a distinction of its own: It’s billed as the first multistory, modular-built apartment building to open in the nation’s apartment capital.

    July 21, 2014 1 Photo

  • Scores dead in first major ground battle in Gaza

    The first major ground battle in two weeks of Israel-Hamas fighting exacted a steep price Sunday: It killed 65 Palestinians and 13 Israeli soldiers and forced thousands of terrified Palestinian civilians to flee their neighborhood, reportedly used to launch rockets at Israel and now devastated by the fighting.

    July 21, 2014

  • Traditional lottery games hold their own

    Ohio’s traditional lottery games are mostly doing well despite competition from their electronic counterparts at four racinos.

    July 20, 2014

  • HIV diagnosis rate fell by third in U.S. over decade

    The rate of HIV infections diagnosed in the United States each year fell by one-third over the past decade, a government study finds. Experts celebrated it as hopeful news that the AIDS epidemic may be slowing in the U.S.

    July 20, 2014

  • Suddenly, the sun is eerily quiet: Where did the sunspots go?

    The sun has gone quiet. Almost too quiet.

    July 20, 2014

  • Monitors try to secure Ukraine plane crash site

    International monitors moved gingerly Saturday through fields reeking of the decomposing corpses that fell from a Malaysian airliner shot down over rebel-held eastern Ukraine, trying to secure the sprawling site in hopes that a credible investigation can be conducted.

    July 19, 2014

  • Israeli bulldozers destroy Hamas tunnels in Gaza

     Israeli bulldozers on Saturday demolished more than a dozen tunnels the military said were being used by Hamas gunmen to sneak beneath the southern border of the Jewish state and carry out attacks on its soldiers and civilians.

    July 19, 2014

House Ads
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
AP Video