Dive Brief:
- American Electric Power has filed a settlement with state regulators that would allow it to transfer the coal-fired Mitchell Power Plant in West Virginia to its Wheeling Power subsidiary.
- The settlement, filed Oct. 9, outlines an agreement supported by the generator as well as consumer watchdogs and the Sierra Club. The agreement would add about $8 million to AEP's efficiency spending in the state.
- Wheeling Power would pay for 82.5% of the half share of the Mitchell plant initially, taking the full cost on in 2020.
Dive Insight:
If approved by the West Virginia Public Service Commission, the settlement would wrap up AEP's efforts to transfer ownership of coal facilities affiliates in the state. The deal calls for more efficiency spending in, and in the future AEP will issue a request for proposals when seeking long-term generation.
The Charleston Gazette reports that the settlement was reached in September but not filed with state regulators until recently. "This settlement is the culmination of more than two years of regulatory proceedings and clearly demonstrates collaboration at its best,” Jeri Matheney, a power company spokeswoman, told the Gazette.
The deal does not transfer ownership of Mitchell’s Conner Run Fly Ash Impoundment, because of a potential toxic cleanup that Wheeling would then be forced to fund.
Some environmentalists and consumer advocates remain critical of parts of the settlement, saying it keeps West Virginia too reliant on fossil fuels, especially coal.
“With the approval of this sale, West Virginia will have very little room for energy diversity, as electricity will come almost exclusively from coal,” the West Virginia-Citizen Action Group said in a press release. “It is unclear what the impact will be from increasing reliance on a single source of energy, especially in the face of new regulations to address climate change."
