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Layout 1 Table of Contents
2
Letter to Members
4
Map of AMP-Ohio Members
6
The Year in Review
28
AMP-Ohio Board of Trustees
30
2007 Financial Data
83
Supplemental Information
94
AMP-Ohio Executive Management
95
AMP-Ohio Member Electric Systems at-a-Glance
Cover photos:
(top) Public Square in Cleveland, Ohio, at night.
(bottom) An early spring morning in downtown Bedford, Virginia.
(inserts, from left) An OMEGA JV2 gas-turbine generating unit; artist rendering of the Prairie State Energy Campus;
transmission lines for OMEGA JV5's Belleville Hydroelectric Plant; an OMEGA JV6 wind turbine. AMP-Ohio is the Columbus-based nonprofit wholesale power
supplier and services provider for 122 member municipal
electric systems 81 in Ohio, 26 in Pennsylvania, seven in
Michigan, five in Virginia, two in West Virginia and one in
Kentucky.
1
Owned and governed by its member communities,
the organization is dedicated to providing member assistance
and low-cost power supply. AMP-Ohio also serves as project
manager for groups of municipal electric communities
participating in joint ventures to share ownership of power
generation and related facilities.
AMP-Ohio is closely aligned with two other municipal power
organizations. The Ohio Municipal Electric Association (OMEA)
is the legislative liaison for Ohio's municipal electric systems.
The Ohio Public Power Educational Institute (OPPEI) is the
nonprofit foundation that provides educational services for
municipal electric employees and informs consumers and the
general public about the benefits of public power.
1
as of July 1, 2008 2
2007 Letter to Members
Years ago, when someone asked about AMP-Ohios mission,
we would point to the way that one organization could serve
the interests of both big-city Cleveland and small-town
Custar, which had barely more than 100 customers. That,
we could tell questioners, showed how diverse this
organization was.
But given the growth of this organization over the past
dozen years, using such a measure doesnt begin to show
the diversity in population, interests and needs of the 122
municipal electric systems that comprise the AMP-Ohio
membership.
The past year saw continued growth in the geographical
area of this organization, with the addition of new member
communities in Pennsylvania, Virginia and Kentuckythe
last adding a sixth state to the membership area. This
growth in membership benefits all AMP-Ohio member
communities, both through economies of scale in terms of
the energy control center and power supply planning and
in helping to increase the organizations stature on a
regional and national level with regard to policy discussions.
But the bigger area of growth continued to be the number
of projects that AMP-Ohio found itself playing a part in to
meet the needs of those member communities.
From the beginning, the key role of this organization has
been to provide for the power supply needs of member
communities. And from the beginning, our message has
always been that communities needed to protect their
interests through a diversity of energy supply sources.
At one point, short-term wholesale power was plentiful
thats just a memory now, but even then we were urging
AMP-Ohio member communities to have assured long-term
contracts or resources available to mitigate the effects of
escalating prices.
In 2006, the organization set forth a strategic plan calling
for AMP-Ohio to be the energy supplier that provides the
greatest value to our member communities, and that was
our highest priority in 2007. We continued to move forward
with the American Municipal Power Generating Station
project in southeastern Ohio that will provide reliable,
affordable power for participating member communities.
We also increased our share of the Prairie State Energy
Campus project now under construction by Peabody Energy,
moving from 300 MW to 368 MW. Both of these projects,
along with new hydroelectric, wind and landfill gas genera-
tion, are important components of AMP-Ohios power supply
strategy to reduce our members over-reliance on the volatile
wholesale electric market.
Both of these facilities will employ the latest technologies
available for coal-fired generating facilities, making them
among the cleanest facilities in the nation and significantly
cleaner than the sources of electricity they will replace when
member communities become less dependent on the
wholesale energy markets.
While these plants will serve to meet the base load needs
of many communities, AMP-Ohio also recognized the need
of member communities to provide further sources of
renewable energy to their residential and commercial
customers. Building on the positive record of the Belleville
Hydroelectric Plant that is the centerpiece of Ohio Municipal
Energy Generating Agency Joint Venture 5, the organization
is developing three additional run-of-the-river generating
facilities on the Ohio River, and is working with member
communities to secure federal licenses to develop two other
generation projects on the river.
Together, those five hydroelectric plants at the Cannelton,
Smithland and Willow Island locks and dams (currently
under development) and R.C. Byrd and Meldahl locks and
dams (permits pending) have the potential to produce
more than 300 MW of electricity. By any measure, this is a
significant addition to the regions renewable resources
and it highlights AMP-Ohios continued commitment to a
diversity of power supply resources.
Additional green resourcesboth wind generation and
landfill gas generationare also in the planning stages.
AMP-Ohio has been a leader in both these areas, building
what were the firstand remain today, the onlyutility
scale wind turbines in Ohio and contracting to purchase
approximately 40 MW of landfill gas generation. The
organization has plans to add up to 100 MW of generation
from these two sources in coming years.
Planning for new power supply sources was, of course, not
the only way that AMP-Ohio worked to provide added value
for member communities. Other departments also provided 3
significant services to member communities both large
and small.
Our finance department produced a savings of more than
$9.5 million for 41 Ohio member communities by selling
Electricity Purchase Revenue Bonds to prepay for 171 MW of
a power supply contract secured through J. Aron in
November 2005. Completed in August, this transaction
was later nominated for Deal of the Year by The Bond Buyer
financial publication.
To meet the needs of the organizations ongoing projects,
the finance department also facilitated the expansion of
AMP-Ohios line of credit. It is another mark of AMP-Ohios
rapid growth that not one, but two expansions occurred in
the final three months of the year. In October, AMP-Ohio
closed on a $350 million syndicated bank line of credit
agreement that replaced a $150 million arrangement. Then,
in December, this was superseded by an amendment that
increased the line to $450 million, with a feature that allows
it to be increased to $550 million at any time over the
remaining five-year term.
Recognizing the growing concerns of member communities
and their constituents about environmental issues,
AMP-Ohio took two significant steps beyond what it had
already committed to. In May, the organization obtained
membership in the Chicago Climate Exchange (CCX), which
is North Americas only voluntary, legally binding rules-based
greenhouse gas emission reduction and trading system.
In early 2008, AMP-Ohio executed its first trades in the
CCX market.
In November, the board of trustees again stepped forward
in the environmental area, approving a contract with
Vermont Energy Investment Corporation (VEIC) to help in
the development of an energy efficiency program available
to all member communities. Alongside the new generation
assets being developed, the plan developed by VEIC will
provide an important component of our future resource
planning. While legislation in some states will mandate
such programs for investor-owned utilities, we believe it is
important that public power voluntarily assume a leadership
role in this critical area of energy policy.
Summing up, it was a very productive year for the organiza-
tion, and thats one way for us to look at 2007. But a better
way to view the years effortsand the one we have
chosenis to see 2007 as a stepping stone for 2008 and
beyond, laying the foundation for power generation, energy
efficiency and environmental efforts in the years ahead.
Marc S. Gerken, PE
Dan Preising, PE
AMP-Ohio President/CEO
AMP-Ohio Board Chairman
Dan Preising, PE, AMP-Ohio Board Chairman and Marc. S. Gerken, PE, AMP-Ohio President/CEO New Wilmington
S
Grove City
L
Ellwood City
K
Girard
Phillipi
B
Richlands
D
Glouster
New Martinsville
Gorsuch Station
Woodsfield
St. Clairsville
Jackson
Belleville Hydroelectric
Plant OMEGA JV5
Greenup
(Hamil