FERC approves power sales contract for 190-MW Ohio River projects

American Municipal Power-Ohio has secured federal approval of a proposed power sales contract that will help finance construction of three Ohio River hydroelectric projects totaling more than 190 MW.

The Federal Energy Regulatory Commission approved the contract March 4, providing for the sale of power from the 84-MW Cannelton (No. 10228), 72-MW Smithland (No. 6641), and 35-MW Willow Island (No. 6902) projects to municipalities from several states, for a period extending beyond the expiration of existing project licenses. (HNN 11/17/08)

The contract covers a period about 16 years beyond the 2041 expiration date of the Cannelton license, about 19 years beyond the 2038 expiration date of the Smithland license, and 18 years beyond the 2039 expiration of the Willow Island license. AMP-Ohio said extending power sales would ensure the projects remain economically attractive.

AMP-Ohio is a non-profit, wholesale power and services provider for about 126 municipalities that own and operate electric systems in six states: Kentucky, Michigan, Ohio, Pennsylvania, Virginia, and West Virginia. It said it plans to contract with more than 70 municipalities for the delivery of project power from the three projects.

AMP-Ohio said the contract would help it: secure project financing; ensure debt recovery and lock in long-term power sales; and guarantee the availability of funds for project maintenance and provide long-term, reliable power supply to the licensee’s customers. It also said the contract would enhance its ability to maintain a high bond rating and obtain future bond financing for modernizing the projects, covering relicensing costs, and other expenses.

The contract would provide participating municipalities with a right to a share of the power and energy from all three projects. Additionally, participants would pay charges to be pledged from the participant’s system revenues to secure repayment of bonds issued by AMP-Ohio.

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