4 Gas Turbines

FirstEnergy Corp. and American Municipal Power (AMP) have a deal to build natural gas-fired combustion turbines in Eastlake, OH, at the site of the company's existing coal-fired Eastlake power plant. AMP would pay for the project, but sell a 25 percent share back to FirstEnergy when the new facility begins operation in early 2016. FirstEnergy, in turn, would operate and maintain the turbines. Neither FirstEnergy nor AMP could estimate cost of the project, though an AMP spokesman said the cost would probably be less than a typical turbine placement because these will be installed at an existing power plant.

                 Location: OH   Lake
                 Startup Date: 2016
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                 Primary Fuel: Gas
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Contractor	Contractor Comment
No contractors listed for this project.

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No NOx control information available.

FirstEnergy and AMP Sign Memorandum of Understanding to Build New Natural Gas Generation in Eastlake

FirstEnergy Corp. (NYSE: FE) and American Municipal Power, Inc. (AMP) have entered into a non-binding memorandum of understanding (MOU) to site, build and operate a natural gas peaking facility located on the grounds of FirstEnergy's existing Eastlake Plant in Eastlake, Ohio. The proposed project is subject to regulatory approval.

As part of the non-binding MOU, FirstEnergy would supervise construction of the four combustion turbine units that are capable of producing 873 megawatts (MW). AMP will provide the construction financing and own 75 percent of the generation output upon completion, while FirstEnergy will fund and own the remaining 25 percent of the output in 2016. Plans call for the facility to be operational in early 2016.

Adding new generation is expected to reduce or extend the timeframe for some of the previously announced transmission projects planned by FirstEnergy by alternatively addressing reliability concerns resulting from power plants being deactivated in the region due to new U.S. Environmental Protection Agency rules.

"This project is expected to reduce our estimated transmission spending for projects related to plant deactivations by about $200 million through 2016," said Mark T. Clark, executive vice president and chief financial officer, FirstEnergy. "Our estimated transmission spend could then be in the $500 to $700 million range, with approximately $150 million of that total to be incurred in 2013."

Plant construction is expected to begin in the latter half of 2014 and will take approximately 15 – 20 months to complete. It is expected that up to 150 temporary construction jobs will be created for this project.

FirstEnergy's Eastlake Plant was selected for the new combustion turbines due to its existing transmission system interconnections and the fact it is located in a region that could be impacted by the deactivation of older power plants. Earlier this year, FirstEnergy announced that nine older, coal-fired power plants, including the Eastlake Plant, would be deactivated as a result of the U.S. Environmental Protection Agency's new Mercury and Air Toxics Standards (MATS) and other environmental regulations.

American Municipal Power, Inc. (AMP) is a nonprofit organization that supplies wholesale power supply for municipal electric systems. AMP serves 129 members - 128 member municipal electric communities in the states of Ohio, Pennsylvania, Michigan, Virginia, Kentucky and West Virginia, as well as the Delaware Municipal Electric Corporation, a joint action agency headquartered in Smyrna, Delaware. Combined, these publicly owned utilities serve approximately 625,000 customers.

FirstEnergy is a diversified energy company dedicated to safety, reliability and operational excellence. Its 10 electric distribution companies form one of the nation's largest investor-owned electric systems, serving customers in Maryland, Ohio, Pennsylvania, New Jersey, New York and West Virginia. Its generation subsidiaries control more than 20,000 megawatts of capacity from a diversified mix of scrubbed coal, non-emitting nuclear, natural gas, hydro, pumped-storage hydro and other renewables.