Oct. 23--American Municipal Power and an environmental group are at odds over the chances of electric rates increasing for Painesville customers.

On Thursday, the Sierra Club released a report indicating that electric rates could increase for AMP members like Painesville, which was one of 81 municipalities that decided to participate in a proposed southern Ohio coal-fired plant.

"It's beyond time for AMP's members to get together and cancel the project before it's too late," said Nachy Kanfer, an Ohio representative of the grassroots organization. "Under no circumstances could this plant be a good deal for Painesville ratepayers."

In 2007, Painesville City Council voted to participate in the construction of this plant. The city's share amounts to 13 megawatt hours, or about 1.3 percent of the plant's 960 megawatt hour capacity. Cleveland, Bowling Green and Shelby also voted to participate in building the plant.

But no contract has been established yet detailing construction or operational specifications. And Painesville City Manager Rita McMahon previously said council has not entered into any negotiations.

The AMP Generating Station in Meigs County was first proposed in 2006 when electricity rates were climbing. Kanfer said that's no longer the case because of the current recession, though he did concede that it could be a short-term effect.

A long-term solution that could cut electricity rates is Senate Bill 221. Ever since its passage, the bill has worked to establish energy efficiency standards and greenhouse gas emission requirements.

Kanfer said the proposed plant could lock member communities into higher electric rates than what the current market is projecting.

The notion that AMP members could be locked into higher electric rates is simply a scare tactic, said Kent Carson, AMP's senior director of communications.

"The Sierra Club has never tried to understand this organization or project," Carson said. "It's being built because our members are being overexposed to the wholesale electric market."

If anything, Carson said the plant will stabilize electric rates for its member communities and keep them immune from the market's volatility.

Painesville Councilman Andrew Flock participated in a teleconference Thursday, detailing the report's findings.

Flock said he's worried about the increased cost of the proposed plant. In 2006, the plant was projected to cost $1.5 billion, but Kanfer said that's increased to $3.9 billion.

"Would you ever sign a contract to buy a house without knowing how much it would cost to fix up?" Flock said. "That's what AMP asked us to do with this coal plant. It's not common sense.

"I'm not in favor of residents paying an increased rate on electricity."

Painesville and other communities can forgo building the plant if they come to a consensus, Kanfer said.

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