Bowling Green electric customers will see little immediate impact on their bills as a result of a failed
power plant project.
The city and 80 other AMP Inc. members are facing nearly $125 million in "stranded costs" as a
result of the project that was shelved in February 2011. The proposed AMP Generating Station in
southeastern Ohio’s Meigs County started out as coal-fired, was changed to natural gas-fired before
being halted.
Bowling Green’s share of the stranded costs is $3,401,865, or 2.723 percent.
Stranded costs cover such things as engineering, legal fees, planning and related operations.
The city’s Board of Public Utilities and other officials met with AMP Inc. representatives in executive
session for nearly an hour Monday night to discuss litigation related to the project. AMP Inc. is suing
the contractor, Bechtel, for more than $100 million in what could be a two-year litigation process.
BG Director of Utilities Brian O’Connell told the BPU that the project started in 2007 with a $3 billion
price tag and escalated to $4 billion in late 2009 with no guaranteed final cost.
O’Connell said the city learned of its share of stranded costs in November 2011 after the city put
together its 2012 budget. The city was given the option of a payment schedule or to keep the charge as a
line of credit until litigation was settled. The city reviewed the options with its consultant, Sawvel
and Associates.
It was determined that the city had over collected the power cost adjustment in 2011 by $1,679,000. City
officials decided to ask AMP Inc. to bill that amount by the end of 2011 and make the payment toward the
projected $3.4 million share owed by the city. Had the city not used the money for that purpose,
O’Connell said it would have to refund the amount to customers and possibly have to recollect the amount
at a later time.
The plan calls for a $1.6 million payment in 2014 and a $190,000 payment in 2015. "This will give us
time for the litigation to take its course and learn how much we will owe or how much of a refund we may
get," O’Connell said.
The board also:
• Approved a revised $3 million contract with Municipal Energy Service Agency to design, construct and
expand the Dunbridge Road electrical substation to serve the expansion at Vehtek Systems Inc. The work
will also bolster service to WoodBridge Business Park and Bowling Green State University.
• Was told work to complete the East Gypsy Lane waterline project should begin in early February.