W.Va. PSC Sets Hearing on Pleasants Power Proposal
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CHARLESTON -- With the clock ticking on whether to keep the coal-fired Pleasants Power Plant open past the end of May, the West Virginia Public Service Commission is quickly moving to consider a proposal that could keep the plant open another year at the expense of ratepayers.
The PSC will hold an evidentiary hearing 9:30 a.m. April 21 at its headquarters in Charleston to consider a proposal by Monongahela Power Co. and Potomac Edison Co. to keep Pleasants Power operating for at least 12 months while the companies consider a long-term solution for the plant.
"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 Charlotte Lane, chairwoman of the PSC. "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."
Mon Power and Potomac Edison are seeking an order from the PSC no later than April 25 authorizing the companies to enter into a letter of intent with Texas-based Energy Transition and Environmental Management. The companies proposed an interim solution whereby it entered into a letter of intent with ETEM to operate the plant from June to May 2024.
Mon Power and Potomac Edison would reimburse ETEM for the costs of maintaining the plant for that 12-month period, while taking on the costs of engineering, environmental reviews, and other costs. But the companies are also seeking a temporary surcharge to cover the costs of reimbursing ETEM to keep the plant open.
The surcharge would increase costs for Mon Power/Potomac Edison residential customers by $2.67 per month, $8.44 per month for commercial customers and $4,416 for industrial customers. It would raise $36 million over a 12-month period, or $3 million per month.
As part of an order issued at the end of 2022 by the PSC, the companies agreed as part of a joint stipulation agreement to conduct a feasibility of purchasing Pleasants Power. In its report released last week, Mon Power and Potomac Edison say it will take additional time to review and do their due diligence on outright purchasing Pleasant Power.
The proposal is opposed by environmental and consumer advocate groups who believe that keeping the plant operating past June will unfairly put the burden of operating the plant on ratepayers. But the Pleasants County community continues to rally around the plant, which employs more than 150 workers.
The evidentiary hearing is open to the public at the PSC's headquarters at 201 Brooks Street in Charleston. A livestream of the hearing will be available online at psc.state.wv.us and on YouTube. The public can also provide online and written comments for or against the proposal prior to next week's hearing.
Comments have already been made.
"The Willow Island facility cannot sustain and stay alive," wrote Gary Villers of Washington, W.Va. "Dragging out a slow death will make things much harder for all involved. As bad as I hate to say this, the PSC needs to step up to the plate and do the right thing and deny the rate increase."
"We are hopeful that these jobs can be retained not just for ourselves, but that they continue to exist for the next generation of workers that will follow in our footsteps," wrote Quinton McPeek of Newport, who works at Pleasants Power. "I am hopeful that with the commission's approval of the potential lease agreement, that it will provide the timeframe needed to identify a more permanent solution for Pleasants Power Station."