Staff Report

COLUMBUS — American Municipal Power-Ohio and Voith Siemens Hydro have executed a contract for turbines and generators on what AMP-Ohio calls a “significant” hydroelectric project that will add more than 200 MW of emission-free generation to the region and has the potential to bring green manufacturing jobs to Ohio.

AMP-Ohio President and Chief Executive Officer Marc Gerken said the organization will develop three run-of-the-river hydroelectric plants at existing dams on the Ohio River. The sites are Willow Island Locks and Dam near Waverly, W.Va., Cannelton Locks and Dam near Cannelton, Ind. and Smithland Locks and Dam in Livingston County, Ky. Combined, these three projects have an expected capacity of 208 MW.

AMP-Ohio, which is planning to build a coal-fired electric generating plant in Meigs County, has executed a contract with Voith Siemens Hydro to manufacture eight bulb turbines and generators for the three projects. The contract was awarded following the evaluation of competitive bids by AMP-Ohio and its owner’s engineer, Montgomery Watson Harza.

Voith Siemens Hydro President and CEO E. Mark Garner said Voith Siemens Hydro will manufacture many of the turbine components in York, Pa. and is also considering the possibility of opening a new Ohio manufacturing plant contingent upon appropriate state incentives.

“Voith Siemens Hydro is thrilled to be part of this exciting development of renewable energy in the United States,” Garner said. “These projects represent the largest order in our 131-year history in the United States. The order value will exceed $300 million. We will create many new jobs in York, Pa., with this important order.

“We recognized AMP-Ohio as a leader in developing these new hydro projects at existing dam sites,” he added. “And for these generation additions at existing dams we will do the complete mechanical, electrical, automation and balance of plant supply. This clearly demonstrates our ability of total plant expertise beyond equipment know-how.”

Gerken added: “AMP-Ohio is a leader in the development of renewable resources in our region. We understand the importance of a diversified power supply portfolio and work closely with our members to achieve it. Building on our experience in constructing and operating the Belleville Hydroelectric Plant (on the Ohio River at Belleville, W.Va.), we are pursuing an aggressive plan to significantly increase hydro capacity in the region as a part of an asset-based strategy that include fossil fuel, hydroelectric and other renewable resources such as wind and landfill gas generation. These projects will not only increase the capacity of emission-free electric generation, but will also bring jobs to the region.”

As a wholesale power supplier to municipal electric systems in six states, Gerken said AMP-Ohio is committed to developing projects that diversify member power supply portfolios and reduce exposure to the volatile wholesale market.

Eighty-five AMP-Ohio member communities are participating in the hydroelectric projects and have executed contracts to purchase power from the facilities. AMP-Ohio is working with its member communities on the development of addition projects on existing dams with the goal of adding a total of more than 350 MW of hydroelectric capacity.

“These projects and the commitment made by AMP-Ohio member communities show the priority that public power places on renewable generation,” Gerken said. “The energy of water flowing over the dams on the Ohio River has been largely untapped. Harnessing this energy will service the dual purpose of mitigating our members’ exposure to increasing wholesale market prices and bring much needed generation into the region.”

Gerken said AMP-Ohio is also in final negotiations with contractors to begin cofferdam construction at the three sites and anticipates the new generation facilities going on-line in 2012.