Hamilton, Ohio - Effective immediately, the Electric Utility will idle the steam powered units (Unit 5, Unit 7, Unit 8, Unit 9) located at its Third Street Plant in Hamilton. The Electric Utility will continue to operate one gas turbine (GT 2) at the Third Street Plant and will operate the Hydro Units (Hydro 1, Hydro 2) located on the adjacent canal. Hamilton will continue to receive energy from the JV2 (Joint Venture with other AMP Members) gas turbine located inside Hamilton on Gilmore Road. This action is projected to significantly lower total Electric System costs over the next two years.
The steam units being idled are between 42 and 62 years old. These units were originally designed as base-load (24 hours per day, year-round) coal fired units. These units are more costly to staff, operate and maintain than other City resources and therefore have not operated as base-load units since 2010. Beginning in 2011, these units were operated only for summer peak shaving. Beginning in 2015, the cost to staff, operate and maintain these units significantly exceeds all offsetting cost reductions for transmission and capacity savings.
Hamilton has more than adequate energy and capacity resources from its ownership and interest in several other generation resources such as Greenup, AFEC, Prairie State and Meldahl (4th qtr 2015). These units have been and will continue to supply the City all of its energy and capacity requirements. The change in operations will only impact the system's costs and will not impact the reliability of service in any way.
This change will take the full-time staffing at the Plant from seventeen (17) to four (4) City employees. All affected employees will be given opportunities to apply for currently vacant positions within the City Utilities or other City Departments.
The City is actively exploring the feasibility of constructing a new peaking generation project within the City of Hamilton. These generating units would be highly efficient, natural gas fired units designed to be operated in peaking mode. Electric Department Management will keep Hamilton residents well informed as the feasibility/due diligence process for this potential project unfolds.