Ameren to cut Illinois power rates as costs fall
The city would make enough money to cover the bond repayments for 50 and provide power for city services and residents. Repaying the bonds could cost $2.6 if one plant was built and $8.5 million if three plants were built.
"When we looked at this in 1983, there wasn't the public support for it," Klingner said. "Now we have interest from the utilities to buy power from us. We looked at windpower, but the utilities weren't interested and that's why it wasn't feasible."
Repaying the bonds over a 50 year period would cut into the gross revenues, which could reach $13 million annually.
Each plant will has $675,000 in operational, management and maintenance costs built in. Alderman Steve Duesterhaus, (D-2nd Ward), asked if the hydropower plants would be a major permanent job creator for the city, besides the jobs created in building the facilities.
"I don't think it's too soon to talk about how we hold this asset," Duesterhaus said.
“Those two (Clarksville and Winfield) have even greater potential because they have much more drop (in water elevation) than the ones we’ve been entertaining,” he said. That could translate into even more production of electricity.
3 comments:
Quincy's situation looks just like Canton? Why is this one feasable when Canton is not?
If the city sells the power to utility companies, how does that provide any power to the citizens of Quincy or do we just buy it back at a higher rate? I don't like that deal.
It won't result in lower taxes, do you really think they would willfully use the funds to give us a property or sales tax break?
It won't result in lower utility rates since they will sell it to any utility at market rates.
This is tax money spent to generate additional income for the city, we may see some street improvements here and there but my bet is that the biggest impact you'll see is higher municipal salaries and a larger payroll.
The council needs to be cautious with this and stipulate in advance that 100% of the revenue, if any, generated by this project needs to be reimbursed directly back to the taxpayers of Quincy. This is the only way to ensure they will not needlessly grow the size of the city government.
Post a Comment