Martinsville Bulletin, Inc.
P. O. Box 3711
204 Broad Street
Martinsville, Virginia 24115
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| Local residents opposed plan at hearing |
Pam Sullivan, vice president of marketing for AMP-Ohio, answers a question from former Martinsville City Council member Gene Teague at Thursday’s public hearing on AMP-Ohio’s proposal that Martinsville join other cities in operating power plants in an attempt to lower their electricity costs. (Bulletin photos by Mike Wray) |
Friday, December 21, 2007
By MICKEY POWELL - Bulletin Staff Writer
Martinsville City Council on Thursday held off a decision on the city’s potential investment of $140 million in electric power plants.
The council voted unanimously to table the issue until its Jan. 22 meeting following a motion from Councilwoman Kathy Lawson that was seconded by Vice Mayor James Clark.
City Manager Clarence Monday recommended tabling the issue. No local residents who spoke to the council on the subject Thursday were in favor of the proposal.
“I really think the council should think about everything” it has heard from American Municipal Power-Ohio and city residents before making a decision, Monday said.
Martinsville has until the end of January to decide whether to invest in the plants, said Pam Sullivan, vice president of marketing for AMP-Ohio, which is spearheading the projects.
AMP-Ohio is a nonprofit organization acting as an agent for Martinsville and many other member cities in their efforts to find the lowest power prices on the wholesale market.
“Market power rates are expected to continue increasing over time,” and if that happens, city residents can speculate their bills will go up, Monday said.
For that reason, the city is considering participating with AMP-Ohio in three power plant projects in Ohio and Illinois. Two projects are coal-fired plants. The other involves three smaller-sized hydroelectric dams.
AMP-Ohio is expecting about 85 member cities to take part in the projects.
Even if it participates, Martinsville still would have to buy most of its power on the market, officials have said.
To participate in the projects, the city would have to invest $3.5 million a year for 40 years, which equals $140 million. The investment includes the purchase of electricity from the plants as well as debt service, according to officials.
Officials have reasoned that by being part-owner of power plants, the city eventually would start paying below-market rates for electricity.
The council heard from seven city residents during the hearing. Six voiced their opposition to the power plant investment. Former mayor Gene Teague asked questions but did not state his opinion.
Teague asked if the city would be able to buy any excess power generated by the plants if it does not invest in them.
“There won’t be any excess capacity,” Sullivan said.
Teague also mentioned the idea of the city eventually getting out of the electricity business and turning over its electric system to another utility operator, such as American Electric Power.
“It’s something we have to consider,” he said.
After the hearing, Teague said the city eventually might want to consider selling its electric system if officials think city residents ultimately will pay more for power for many years into the future than people elsewhere who buy their electricity from private utility companies.
AEP customers in Henry County currently pay less than city customers for residential electric service. If private enterprise can sell power for less than the city electric department, why is the city in the electric business, asked Danny Turner of East Church Street.
Councilman Ron Ferrill said the electric department generates revenue for the city and can respond to power failures sooner than utilities based out of town.
Ted Balabanis of Root Trail suggested that the city hold a referendum on the power plant investment.
“I would be very cautious about a decision that affects our children and grandchildren,” he said.
Balabanis added that new forms of energy technology are being developed rapidly and could be considered in the future.
“A lot of technology is out there that has yet to be explored,” said James Crigger Sr. of Askin Street, who is on the Martinsville Planning Commission.
Jim Clark of Spruce Street said future government regulations could affect the projects, “increasing the cost or shutting them down completely.”
Referring to the coal-fired plants, he said, “ultimately the city could be left holding a bag containing a $140 million debt and a lot of soot.”
James Lavinder of Meadowview Lane asked if council members know about factors such as AMP-Ohio executives’ salaries. They said they did not, and Sullivan said such information should be on AMP-Ohio’s Web site.
Council members and Monday told the Martinsville Bulletin earlier this week they had heard only negative opinions from residents about the city participating in the power plant projects.
As of 3:15 p.m. Thursday, there were 877 responses to an informal online poll that the Martinsville Bulletin conducted on the issue. Of the responses, a total of 605, or 69 percent, were opposed to the city investing in the plants while 272, or 31 percent, were in favor of the investment. The poll is not scientific. |
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