One of the great traits of this nation is our ability to commit to a goal and achieve our objectives. Whether it be to land a man on the moon, cure a disease, or build more fuel-efficient vehicles, America has risen to the challenges. Attention is now focused on what has been called alternative energy, a subject we heard a great deal about during the Presidential campaign. As a wholesale energy supplier, AMP is very much aware of the need to support development of clean, renewable sources of the electricity we need to power our homes, businesses and to keep our nation’s economic engines running.

AMP has demonstrated its commitment to renewable resources time and time again, building Ohio’s only utility-scale wind farm, constructing and operating the Belleville Hydroelectric Plant, financially supporting the development of landfill gas generation, and supporting a pilot fuel cell generation project.

With the emphasis placed on wind and solar generation, it seems hydroelectric power has been largely ignored in the recent discussions of alternative energy. Maybe this is attributable to the fact that hydropower is not “new and trendy” — people began harnessing the power of water to produce electricity in the 1880’s. It is also true that some environmental groups have opposed hydroelectric projects that put new dams on bodies of water. AMP’s projects are being sited on existing dams. In a time of projected generation shortages and a demand for cleaner ways of generating electricity, it is unwise to ignore this valuable resource — a resource that has gone largely untapped in our region.

Even with the practical limitations of run-of-the-river hydroelectric generation, the technology proves to be more reliable and efficient than both wind and solar, especially in the Midwest. Run-of-the-river hydroelectric projects — projects using the energy of water flowing over existing dams — achieve capacity factors of 55-60 percent. This means that of the 8,760 hours of the year, the facilities are able to capture 55-60 percent of that potential energy. Compare that to wind, which in the Midwest has a capacity factor in the 20-30 percent range, and solar in the 15-18 percent range. That’s a significant difference and one that impacts the overall efficiency of the projects.

Hydroelectric projects are less intrusive, have better base load capabilities, have lower operation and maintenance costs and a longer lifespan. The construction of hydroelectric facilities brings more jobs and economic development to our region, which is very much needed. The state of Ohio recognizes the value of hydroelectric generation – and included it in the recently adopted alternative energy standard. That’s why AMP is embarking on an aggressive hydroelectric development effort as part of our strategic response to the dysfunctional wholesale electric market through asset development. This response includes the development of new renewable and fossil fuel generation that will provide our member communities with a diversified generation portfolio, thereby reducing their current overexposure to the wholesale market.

AMP and our member communities are currently constructing four hydroelectric projects at existing dams on the Ohio River. Projects at the Cannelton, Smithland, Captain Anthony Meldahl and Willow Island, locks & dams are in various stages of construction. Additionally, AMP and our member community of Wadsworth have been granted a FERC permit and are applying for the development license for a fifth project at the R.C. Byrd Locks and Dam; and we’re working with the member community of Oberlin, Ohio, on the license application for a project at the Pike Island Locks and Dam.

Combined, the four projects under construction have a capacity of 300 megawatts (MW), added to the 114 MW of capacity at existing hydroelectric facilities at the Belleville, Hydroelectric Plant (West Virginia), operated by AMP, and Greenup Hydroelectric Plant (Ohio), operated by the City of Hamilton.

While we believe in the competitive advantage hydroelectric projects have over other renewable resources, we are actively pursuing new landfill gas and solar projects on behalf of our member communities.
The diversification of AMP member generation assets will lead to an increase in the percentage of renewable power in member portfolios. Member communities participating in all of the projects that AMP has planned or under development, including our coal-fired plants, will have an average of 21 percent of their power coming from renewable resources (hydro, wind & solar) by 2015.

These projects, as well as the fossil fuel projects under development, will also have a significant positive economic impact for the region. AMP signed a more than $423-million contract with York, Pennsylvania-based Voith Hydro for turbines and generators for the hydroelectric projects currently under construction. Each of the four hydroelectric projects under construction will employ 200-400 construction workers and 7-9 permanent employees to operate the facilities. This makes these projects even more important given the realities of today’s economy. The total investment for the four projects currently under construction is approximately $1.7 billion.

AMP is obviously very proud of the projects we have under development and we continue to strive to be a leader in efficient, responsible energy development. As a non-profit member-governed organization serving public power entities in seven states, we are driven not by profit margin, but by our continued efforts to reflect the values of our members.