Nielsen, SteEhen From: Michael Beirne Sent: Monday, December 02, 2013 5:42 PM To: Jamie Subject: FW: Hydropower amendment? Jamie, fyi for you and Sen. Seitz.Wind folks went to Gongwer and we got a request for comment. Below are our responses. Thanks. From: Michaei Beirne Sent: Monday, December 02, 2013 4:24 PM To: ?Marcus Roth? Subject: RE: Hydropower amendment? Marcus, you can attribute the following to Jolene Thompson, OMEA Executive Director. We?re disappointed that the wind industry - which when it benefits them wants the renewable community to work together has apparently decided to cut bait when it comes to their parochial interest. It?s further disappointing since we are one of the entities they approach when they have power to market. We agree that one of the policy goals was to incent the development of new generation. However, we understood another policy goal to be to encourage a more diverse power supply portfolio. AMP and our members are believers in the bene?ts of a diverse and balanced power supply portfolio that includes fossil resources, along with a variety of renewabies, including hydro, wind, solar and land?ll gas. Hydro power has many attributes the output can be scheduled and the facilities don't need to be firmed up like wind. However, hydro facilities are extremely long-lived projects and are capital intensive compared to wind -- often above market prices for some period of time. Additionally, the hydropower industry isn?t heavily subsidized like the wind industry. Bond debt service for hydro facilities is usually for very long periods 30?35 years or more?Greenup still has debt outstanding. Additionally, the FERC and USACE requirements for hydro are significant and ongoing for the length of the license (50 year initial then 30 year renewal). AMP is non-profit and does not profit from some members use the funds from REC sales to lower the costs for power to their consumers; some simply retire their RECS. is it fair that those who have invested in expensive hydro are now denied the benefits of doing so because they did so because it was the right thing to do and there were no special subsidies or Michael A. Beirne AVP Government Affairs and Pubiications American Municipal Power (AMP) Ohio Municipal Electric Association (OMEA) 1111 Schrock Rd., Suite 100 Columbus, Ohio 43229 614-540-0835 (office) 614-309~9732 (mobile) 101 From: Marcus Roth Sent: Monday, December 02, 2013 11:39 AM To: Michael Beirne Subject: RE: Hydropower amendment? Thanks Mike. Should i attribute this to you? Since wind people are fighting this, can you offer policy rationale for adding old hydro plants to the They say the whole point of the RPS was to encourage investment in new generation, not water it down with old facilities. Also, since AMP isn?t subject to the RPS, why should the company get to profit from selling. Feel free to call if you?d rather talk than write. Thanks, Marcus Roth Gongwer News Service 6i4-221-1992 From: Michael Belrne Sent: Monday, December 02, 2013 11:19 AM To: Marcus Roth Subject: RE: Hydropower amendment? Was literally just getting ready to The Greenup Hydroelectric Power Plant is a pollution?free, 70.2 MW run-of-theuriver hydroelectric plant located on the Ohio River, near Franklin Furnace, Ohio. The facility is located at the Greenup Locks and Dam, which is owned and operated by the US Army Corps of Engineers. The facility is operated in close cooperation with the US. Army Corps of Engineers. Greenup was placed into commercial service in 1982 and has an annual capacity factor of approximately 45%. reenup, is currently owned by the City of Hamilton, Ohio. The City will sell a 48.6% stake in Greenup to AMP and acquire a 51.4% stake in Meldahl when the Meldahl facility begins commercial operation, which is expected to be in 20M. A run-of?the?river hydro plant gene-rates electricity using the power in river water as it passes through the plant without causing an appreciable change in river flow. The addition of Greenup to AM P?s power supply portfolio will directly benefit 48 municipal electric communities. Greenup produces clean, renewable energy. The proposed amendment to SB 58 would permit the facility to qualify for renewable energy credits. Five other hydro projects AMP operates and oversees construction of already qualify for renewable energy credits under existing law. AMP operates the Belleville Hydroelectric Plant, and oversees the construction of four new run?of?the?river hydroelectric projects on the Ohio River. These five projects, plus Greenup, total more than 400 MW of clean renewable energy, and an investment of more than $3 billion. Hope this helps. Let me know if you need anything else. 102