Avon Lake Power Plant to Stay Open, Change to Natural Gas Plant

DEVELOPING STORY

David Gaier of NRG (Genon), which operates the Avon Lake Power Plant, said the company is beginning the process in hopes of adding natural gas as a way to fuel the plant than the current coal-burning plant, considered cleaner.

Gaier said on June 24 that the plans, announced Monday, would mean the plant, originally scheduled to close in April 2015, would operate on natural gas and be  operational by the end of 2016.

The natural gas addition would require the plant to receive permission from the Ohio EOP to run on coal until the work is complete.

“Avon Lake is one of the plants we were looking at in our fleet (of plants),” Gaier said.

The company announced in February of 2012 that they would be shutting down in 2015, in part due to the expense, estimated at $10 million to meet EPA requirements.

The company said at the time, the Avon Lake facility’s closing was “subject to further review based on market conditions.”

That review has apparently resulted in the possibility of an adding the capability  of the plant would run on natural gas .

The plants closing resulted insignificant financial consternation for the city, particularly the school district, which would lose millions each year.

The plant’s devaluation in 2009 resulted in millions of dollars lost each year, and the need, in part, for addition tax money and a levy that narrowly passed in May, following an earlier defeat.

The city has also would have taken a hit.

Councilman Rob James testified in front of Congress in 2012 as to what the plant's closing meant to Avon Lake.

"I hope that a balance can be found between environmental regulation and the ability of the facility to provide jobs, taxes and support to the community,” James said at the time. 

“In 2011, the income tax generated (from the plant) was $77,460,” Zilka said in March 2012. “Property taxes were $134,000.”

The plant hinted in 2012 that there was still a “sliver” of possibility the plant would not shut down.

The plant’s closing would have meant further devaluation as well as a question as to what would happen to the building.

“We’d come up with plan to try to keep it,” Zilka previously said. “The property will be devalued. It has tremendous potential value, but the building itself has a history with chemicals.”

Gaier said the plant in its new capacity would function more as a “peaker plant,” meaning on days when additional power is required, it would be in full operation. Since the plant will not be as fully operational as its current status, the company would likely be seeking “appropriate reductions” in the form of abatements for the reduction in revenue.

Gaier said it was too early to discuss what types of abatements the company would seek or comment on revenue the plant would generate.

The move would mean the facility would be tapped into a regional gas pipeline would need to meet another host of EPA requirements.

“We have a lot to do before then,” Gaier said.

Check back for additional comments from Mayor Greg Zilka and Avon Lake Superintendent of Schools Bob Scott.