Less revenue coming in normally leads to less profits, which is exactly what happened.

With AEP, only the state can allow any increase in utility rates, and they have to demonstrate to PUCO why the increase in rates is justified. They can’t do that, so no increase in rates for AEP customers.

1. First they have to understand what was done.

2. Then they have to take AMP to court on fraud charges to throw out the contracts. This was a clear conflict of interest on former finance director Mike Weiland part. AMP relies on unsophisticated small town city councils. Most of which members are not finance experts, experts on the law and contracts.

3. Then Galion needs to sell the utility for once and all, and stop the madness.

This is Praire State coal plant.

http://www.prairiestateenergycampus.com/pages.asp?pagemainlevel=6&pageid=57

The dam project

http://www.mydailyregister.com/view/full_story/2932839/article-AMP-river-projects-include-Byrd-Dam?

This is how AMP gives their contracts. This was a study provided to the city of Cleveland for their municpal system. Go all the way down to section 8.2.

http://www.ohiocitizen.org/campaigns/coal/BREI%20Consulting%20Engineer%20Report%20FINAL%20101607.pdf

The new prairie state coal plant in Illinois

9.952 megawatts

16 megawats from the new generating plant in southeast Ohio

Then additional megawats from a hydro dam project on the Ohio river.

Under the terms of the contract, these are must buy, not option to buy. Galion must buy these set amounts.

Galion is also on the hook for the EPA fines and the enviromental clean up of the soon to be closed Gorsuch coal plant in southeast Ohio.

Only two cities in Ohio told AMP to go jump in the lake over their contract terms. Yellow Springs and Westerville.

Yellow Springs is home to Antioch college and after looking at the contract the faculty at the college advised city council not to do it.

Westerville city council chair is a vice president of AEP. Looking at the numbers and terms, they told them in polite terms, ” you people are crazy.”

http://www.westerville.org/Default.aspx?tabid=422

1 megawat = 1000 kilowatts

So the May average was 7,045 megawatts.

Take a wild guess what is going to happen when Galion is forced to buy 27.752 megawatts regardless of whether it is needed or not.

That will be 4 times the amount that was actually used in May.

you have not paid attention.

Former finance director Mike Weiland who came from AMP. Under the guise of his leadership, convinced the city council at that time to sign up for 3 new contracts with AMP. Weiland has now left Galion to scurry back to AMP.

In roughly 18 months these contracts will begin to kick in.

These contracts are for 50 years. They force the city of Galion to purchase 27.752 megawatts of electricity everday. This is not an option to buy that amount, this is being forced to buy under the terms of the contract. In 2008, the city of Galion averaged only 11.7 megawatts of total usage. This was before so many families left town, this was before PECO left, this was before the full brunt of the recession took hold. That figure now is probably closer to 10 megawatts a day.

Galion will be ” FORCED TO BUY 270% MORE ELECTRICITY THAN IT NEEDS ”

The city can not run a negative figure in the utilities, so that means the customers of the utility will pay it.

Not only did he convince city official to these contracts, but then he also convinced city official to become owners of these new plants and Galion is responsible for all the cost over runs, liabilities etc.

What in the world is Galion buying power from a plant in Illinois ? The city will be shortly and it’s price tag is already twice as much as originally told it would be.

This is Prairie State, hundreds of miles away from Galion.

http://www.chicagotribune.com/news/local/ct-met-coal-plant-20100710,0,3046966,full.story

This is the most urgent matter facing Galion.

Mike Weiland left ticking time bombs for Galion.