APRIL 29, 2003

John Wiese of Conectiv Energy personally stopped by the Jackson Township Municipal Building to talk with the Township Manager and Board of Supervisors on the Hinckston Power Plant Project which was proposed for a site just off of Dishong Mountain Road. Last summer PHI acquired Conectiv Energy. An announcement was made by Conectiv and it's parent holding company that two new generation projects were cancelled. Those projects are the East Donegal Plant in Lancaster County and the Hinckston Run Power Plant proposed for Jackson Township, Cambria County.

The power plant project was estimated to be in excess of 600 million dollars and would have created an economic boom for notonly Jackson Township but the surrounding areas in Cambria & Indiana Counties. It was projected that 600 temporary construction jobs would have been created over a two year periodand 50 permanent jobs once the plant would be in operation.

The reasons given for the cancellation of the project were as follows:
~A downturn in the economy
~Very distressed energy market
~Unprecedented volatility in the oil and gas industry

Jon Wiese of Conectiv expressed his sincere gratitude to the Board of Supervisors, Township Manager, Cambria County and theresidents of Jackson Township who have been very supportive of the power plant project. The turbines were near completion and were scheduled to be delivered in a few months. Also the last major permit, the air permit would have been in place by July. Asof today, The PaDEP was notified that the air permits are withdrawn from further review. Approximately 5 million dollars was already invested in the site. PHI / Conectiv cancelled the order for the turbines and is writing off a loss of 93 million dollars for the two proposed projects. Although no land purchases were made to date, everything was in place to move forward on the purchase. To date only options to purchase the land were paid for. Jon Wiese of Conectiv expressed his sincere thanks to the community and Township officials for being excellent to work with. He praised Jackson Township for being extremely cooperative and was impressed by their willingness to work with them on this project.

To say the least, this is a great loss of potential jobs, tax revenue and spin-off business for the community. On the other hand, other projects are still moving forward. Those include the reopening of the Pennzoil plant in Mundys Corner by the new owners, Warren Oil. The Warren Oil plant could have up to 50 employees within two years. Also moving forward is the proposed reopening of the old Bethlehem Mine along Swigle Mountain Road.The proposed mine will be called the Madison Mine and will create approximately 75 full time jobs. Also in the works is a landfill gas conversion plant that will convert landfill gasses into gas that can be used for residential and business use. That 13 million dollar project is being developed by Crouse & Company. Last but not least, the proposed New Route 22 project isslated to begin this Fall. That project will cost $35 million to expand and improve the road through Jackson Township.

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Jackson Township Supervisors
Dave Hirko / Manager