The construction of the hydroelectric power plant at the Cannelton Locks and
Dam remains on schedule. When American Municipal Power started construction
of the dam, company officials estimated the first phase ending around late
July of this year.

"The first phase is about 80-percent complete," Kent Carson, Media Relations
Specialist for AMP said. "The next step is the construction of the actual
power house."

The first phase consists of excavating 1.2 million cubic yards of earth and
constructing a cofferdam. Carson said the company expects to wrap up this
phase by August 1.

"We are pleased with where we are," Carson said. "It looks a lot different
than it did."

In preparation for the next phase of construction, building the actual power
house, the company recently sent out Request for Proposals to construct the
building. Carson said the company plans to open the bids in May, and award
the bids for the power house in mid-June.

When AMP awards the bid, construction starts in earnest. It is at this point
that the number of workers start to dramatically increase. Officials
estimate the number of workers to reach as high as 400.

Background

The effort to locate a hydroelectric power plant at the Cannelton Locks and
Dam dates back to the 1960s, but the effort never advanced past the planning
stages, until now. Various companies explored the idea, but the project went
nowhere. The idea picked up steam again in the 1980s, but the companies
again lost interest in the project.

American Municipal Power purchased the right to the project in 2007  from
the previous owner, W.V. Hydro Inc., and moved forward with the project. AMP
plans a $400 million generating plant at the site near Domtar's paper mill.

In May of 2009, work started at the site when Kiewit-Traylor, a joint
venture between Kiewit Construction Company and Traylor Brothers
Incorporated, moved construction equipment to the scene. The initial
construction phase employed approximately 75 workers.

The first phase consisted of moving 1.2 million cubic yards of dirt. It also
included constructing a 530,000 square-foot cement-bentonite cutoff wall, a
marine placed rock and sand cofferdam weighing 450,000 tons and a
de-watering system.
The hydroelectric plant consists of three generating turbines that produce a
total of 88 Megawatts of electricity. AMP serves 123 utilities in six
surrounding states.

On August 5, AMP officials held the official groundbreaking ceremonies for
the plant. Kentucky Governor Steven Beshear and other state and local
dignitaries attended the event. Company officials expect the plant to go
on-line sometime in 2013.