Federal probe into Cleveland coal plant deal requested following exclusive 5 On Your Side report

Ratepayers allegedly paying millions more in bills

CLEVELAND - The Federal Energy Regulatory Commission is being asked to investigate allegations that ratepayers in Cleveland and 217 municipalities across the Midwest are on the hook for a new coal fired power plant.

The call for a federal probe of  the Prairie State Power Plant follows an exclusive 5 On Your Side investigation in July that raised questions about the deal that was charging ratepayers for electricity that was not being produced.

Congressman Dennis Kucinich requested a federal investigation into the plant in a letter sent to regulators September 18, 2012.

In the letter, Kucinich called for an investigation into "any and all agreements between owners of the Prairie State Generating Company, such as American Municipal Power, and the owners' member municipalities such as Cleveland Public Power."

Kucinich cited a new report released by the Institute for Energy Economics & Financial Analysis that alleges electric customers in Cleveland and across the Midwest will pay "more than 100 percent of the original promised cost of electricity."

The Prairie State coal plant is located in Southern Illinois and was built with bonds raised by Cleveland and other municipalities.

It came under scrutiny when the plant fell behind schedule that resulted in costly overruns.

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