MORGANTOWN – The state Public Service Commission has scheduled an evidentiary hearing to consider Mon Power’s and Potomac Edison’s interim solution and proposed surcharge regarding their potential acquisition of the Pleasants Power Station.
The hearing is set for 9:30 a.m. April 21 at PSC headquarters in Charleston and will be live-streamed on the PSC website and YouTube channel.
“It is important that we consider the companies’ proposal, which is intended to prevent the Pleasants Power Station from discontinuing operations on May 31 and the employees losing their jobs,” said PSC Chairman Charlotte Lane. “Further evaluation is required before a long-term decision is made, but it is prudent to at least consider this interim action in the meantime.”
Pleasants was owned by Ohio-based Energy Harbor, a former FirstEnergy subsidiary with three nuclear and two coal plants. In December, Energy Harbor transferred and then leased back Pleasants from Texas-based Energy Transition & Environmental Management (ETEM), which acquires operating and retired industrial properties with environmental challenges.
ETEM plans to demolish the plant and remediate the site but Energy Harbor will keep it open through May 31.
The interim solution involves Mon Power and ETEM entering into an arrangement for up to 12 months to keep Pleasants open while it considers and negotiates the purchase and conducts the regulatory proceedings.
Mon Power would need to execute a letter of intent regarding the arrangement, starting June 1, that would need a PSC OK.
Mon Power would also establish a temporary surcharge to customers to cover the costs – mostly labor – of keeping the plant open. This would add $2.67 per month to a residential bill, $8.44 per month to a commercial bill. True-ups would follow to ensure only actual costs are covered. This also would need PSC OK.
It is also asking PSC for consideration of further analysis and longer-term components of the purchase (and possible closure of Fort Martin outside Morgantown) in a near-future PSC proceeding.
Mon Power said it previously believed that Energy Harbor would operate Pleasants through the fourth quarter of this year, but falling energy prices led it to decide to close the plant May 31. There are no current coal or lime contracts for the plant.
Energy Harbor planned to end employment by July 15, Mon Power previously told the PSC, but the Legislature’s passage of SB 609 in March has ETEM reconsidering demolition. SB 609 says, “No existing coal, oil, or natural gas fueled power plant shall undertake any decommissioning or deconstructing activities prior to obtaining approval” from the state Public Energy Authority.
Now, Mon Power said, ETEM is willing to consider a sale of Pleasants, a transaction that would allow transitional operation of Pleasants for possibly up to five years before demolition, or a forward sale of Pleasants with the deal to close after the site is remediated.
Problems associated with shutting down and then restarting Pleasants, Mon Power said, include lack of employees to restart it; re-firing cold boilers, turbines and transformers; and possible failure of fans and pumps.
If Pleasants is going to keep running past May 31, Mon Power told the PSC, if must notify PJM, the regional grid operator, by May 1.
In response to the PSC setting the hearing, Mon Power said on Friday, “The analysis [of the possible purchase] is ongoing and not yet finalized. The company is willing to continue with its analysis and has proposed an option to keep Pleasants available and in operational condition since the plant is expected to cease generating electricity no later than May 31, 2023. We will wait for a response from the PSC on our proposal.”
PSC said in its hearing announcement that the public is invited to submit comments regarding their concerns, opinions and suggestions related to the case. Submit comments on the PSC website by clicking on “Submit a Comment” and then following the prompts to submit a formal comment. They may also mail written comments to: Karen Buckley, Executive Secretary, Public Service Commission, P.O. Box 812, Charleston, WV 25323. Reference Case No. 22-0793-E-ENEC in written correspondence.
West Virginians for Energy Freedom has previously voiced concerns about the Pleasants purchase. Speaking for the coalition, Emmett Pepper, policy director for Energy Efficient West Virginia, said on Friday, “The deadline set by the PSC to voice concerns is April 14, so we would urge ratepayers to make their voices heard. People can make comments at energyfreedomwv.org or on the PSC website.
“The proposal is to increase electric bills for families by about $36 a year, to subsidize a plant that won’t be needed,” he said. “The $36 per year number is based on the plant not running. If it’s actually operated, then it will cost Mon Power customers even more.”
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