The Danville Utility Commission has revealed that an out-of-state project that would lessen the city’s reliance on buying electricity from the open market has increased in cost.
Construction of the American Municipal Power Generating Station in Columbus, Ohio, will cost $3.258 billion — a 10 percent increase over a January estimate, Joe King, assistant city manager for utilities, said Monday night.
King said rising global demand for steam turbines and boilers, coupled with price increases for metals and concrete have led to the rise in building cost.
American Municipal Power-Ohio is developing the 1,000-megawatt project on behalf of 81 participating member communities with a stake in the proposed coal-fired plant, including Danville, Martinsville, Bedford, Richlands and Front Royal.
If the plant is built, Danville would have a 100-megawatt stake in it, the largest share among participating providers, King said. Before construction can begin, AMP-Ohio must reach an agreement with a contractor, secure permits, and complete negotiations on state and local incentives.
The city’s decision to get a share of the project is part of a broader effort to move Danville away from having to purchase electricity on the open market. The city buys 95 percent of its power from the open market. The city also hopes to have power shares in six other plants. Stakes in those facilities would increase the city’s ownership of its electricity to 60 percent and could lower and stabilize rates the city charges its customers, King said.
—From staff reports
The power generating station would save Danville about 20 percent in electricity costs, compared to purchasing power from the open market, he added.
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