Avon Lake Superintendent, Mayor, Taking Cautious Approach on Power Plant Remaining Open

Almost four years after the coal burning NRG/Genon Power Plant was devalued, and one year after it was announced the plant would close, the city and school district received some good news today: The plant would likely remain open and operate as a natural gas plant.

Superintendent Bob Scott

Avon Lake Superintendent of Schools Bob Scott, who received the news early this morning, was cautiously optimistic.

“We’ve been in contact with (Genon spokesperson) Mark Baird almost weekly, and he’s been constantly saying nothing has changed,” Scott said June 18, following the early morning announcement from the Texas-based NRG. “But there’s still a lot of ifs in this. They still have to find the gas. How that happens, who knows.”

Scott said he and Mayor Greg Zilka would sit down with NRG this Thursday or Friday and discuss the issue.

NRG spokesperson David Gaier said the plant would function as a “peaker plant” providing most energy on high-demand days and would generate less revenue.

“Most of our revenue from the plant is from power generation, not from property taxes,” Scott said. "That will change the amount of revenue." 

The district gets millions each year from utilities generation. The district has been vocal in saying the plant’s closure would have put the district in financial jeopardy. Last November’s failed levy did not take the plant’s closure into account, but the passed May levy did.

Scott said that if the plant remains open and continues to generate revenue, the money coming in will affect renewal levies.

“We may not need as many tax dollars,” Scott said. “It will give us positive reasons to look at renewals. It will keep us flexible." 

Scott added that having a cleaner energy source and some continued revenue was a positive.

"It’s actually great news for us and for the city," he said. "Gas is much healthier."

Mayor Greg Zilka will keep commission on plant's closing viable

Avon Lake Mayor Greg Zilka said he was “very pleased” with the news, but was taking a similarly cautious approach.

He said he also received the news earlier this morning and learned the decision to keep the Avon Lake plant, as well as New Castle, PA plant open, was made last Friday, June 21.

“We’re very please to get the announcement, but until the deal is hashed out and until contracts are signed, we are operating as thought there’s no deal at all,” Zilka said.

Zilka said he has been in constant contact with Congresswoman Marcy Kaptur’s office to help keep the issue moving  along.

“On May 16 there was an auction of electrical contracts,” Zilka said. “That was an important issue in the plant possibly staying open, but I have no idea if that affected it.

“(NRG) was still evaluating until last Friday.”

“We’ve had many conversations, but we’ll still assume it will close until it’s a signed deal. There still needs to be State, and I believe Federal approval, on several issues first.

The city will continue with plans to determine what to do with the NRG plant, should it close. 

“Tonight’s legislation is to create a commission for after the plant’s 2015 shutdown,” Zilka said. “We’re allowing the commission to exist, in case this crashes.”

Still, the announcement was deemed a positive.

“We’ve been living under this cloud since February 2012 and we’re hoping that the clouds dissipate and there’s nothing but sunshine for the financial situation for Avon Lake so we can continue to provide good services in the city,” Zilka said.