Published On: Thu, Dec 19th, 2013

PSC approves APCo acquisition of John Amos 3 generation unit

The Public Service Commission of West Virginia issued an Order this week approving the petition to allow Appalachian Power Company (APCo) to acquire two-thirds of the John E. Amos 3 generation unit. There will be no impact on rates as a result of the transaction. Because of a significant deficit in generating capacity to serve their West Virginia customers, last year APCo filed a petition with the PSC to allow the transfer to APCo of 867 MW of generating capacity presently owned by Ohio Power Company (OPCO), an affiliate.

In the same Order, the Commission deferred ruling on a proposed merger of Wheeling Power Company (WPCo) into APCo stating the companies must provide a longer-term, achievable and economic plan to serve the WPCo load before the merger is consummated. The Amos acquisition will resolve APCo generation capacity deficit without the merger until 2015 when APCo has scheduled the retirement of certain other generation facilities.

The Commission deferred ruling on APCo’s proposal to acquire one-half of the Mitchell Power Plant. The Mitchell acquisition, which requires the approval of both the Virginia State Corporation Commission (VSCC) and the West Virginia Commission, has already been denied by the VSCC. In its Order this week the West Virginia Commission stated that “reliance on a transaction that is critical to an overall long-term capacity plan but which cannot go forward because of regulatory roadblocks in other jurisdictions, is not realistic or reasonable at this time.”

Interveners in the cases included the Consumer Advocate Division (CAD); West Virginia Energy Users Group (WVEUG); the West Virginia Citizen Action Group (CAG); the Sierra Club; the West Virginia Oil and Natural Gas Association (WVONGA); and the West Virginia Building and Trades Council. AFL-CIO; and Steel of West Virginia. APCo and WPCo together serve over 478,000 customers in West Virginia

More information, including a copy of the Commission Order may be obtained from the PSC website www.psc.state.wv.us and referencing Case Nos. 11-1775-E-P and 12-1655-E-PC.