KY PSC approves KY Power purchase of part of Moundsville WV powe - WTRF 7 News Sports Weather - Wheeling Steubenville

KY PSC approves KY Power purchase of part of Moundsville WV power plant

Posted: Updated:
  • EnergyEnergyMore>>

  • UPDATE: WV leaders applaud possible energy company expansion

    UPDATE: WV leaders applaud possible energy company expansion

    Tuesday, September 2 2014 11:05 AM EDT2014-09-02 15:05:44 GMT
    House Speaker Tim Miley, D-Harrison, said the announcement of four major energy companies partnering to build a proposed natural gas Atlantic Coast Pipeline is another step toward expanding West Virginia's economy.
    House Speaker Tim Miley, D-Harrison, said the announcement of four major energy companies partnering to build a proposed natural gas Atlantic Coast Pipeline is another step toward expanding West Virginia's economy.
  • WV Wilderness group fights against gas companies over pipeline in Pocahontas County

    WV Wilderness group fights against gas companies over pipeline in Pocahontas County

    Tuesday, September 2 2014 10:40 AM EDT2014-09-02 14:40:53 GMT
    The West Virginia Wilderness group has been fighting three gas companies for months, who want to put a pipeline in Pocahontas County .Lauren Ragland is the founder of West Virginia Wilderness and said the pipeline does not belong in Pocahontas County.
    The West Virginia Wilderness group has been fighting three gas companies for months, who want to put a pipeline in Pocahontas County .Lauren Ragland is the founder of West Virginia Wilderness and said the pipeline does not belong in Pocahontas County.
  • Dominion, Duke to build $5B natural gas pipeline

    Dominion, Duke to build $5B natural gas pipeline

    Tuesday, September 2 2014 9:20 AM EDT2014-09-02 13:20:59 GMT
    Dominion Resources, Duke Energy and other partners have proposed building a $5 billion natural gas pipeline to connect the Southeast with the prodigious supplies of natural gas being produced in Pennsylvania, Ohio and West Virginia.
    Dominion Resources, Duke Energy and other partners have proposed building a $5 billion natural gas pipeline to connect the Southeast with the prodigious supplies of natural gas being produced in Pennsylvania, Ohio and West Virginia.

FRANKFORT, Ky. (AP) — The Kentucky Public Service Commission conditionally approved a proposal Monday by Kentucky Power Co. to purchase half interest in a power plant in West Virginia to supply electricity in parts of eastern Kentucky.

That agreement came after Kentucky Power withdrew an earlier proposal to retrofit the 800-megawatt Big Sandy plant north of Louisa, Ky., with an emission-removing scrubber, opting to close the plant instead. The Big Sandy plant is along the Big Sandy River near Fort Gay, WV.

On Monday, the PSC authorized Kentucky Power to purchase a 50 percent interest in Ohio Power Co.'s 780-megawatt Mitchell plant south of Moundsville, WV. Both are subsidiaries of American Electric Power Co.

Under a 2007 federal court consent decree, Kentucky Power agreed to close the unit in mid-2015 unless it is upgraded to meet stricter air emission standards. Kentucky Power plans to close the 800-MW unit and has said it intends to seek PSC approval to convert a 278-MW unit at Big Sandy to burn natural gas instead of coal.

Although the Mitchell acquisition will be the least costly for Kentucky Power and its 173,000 ratepayers in 20 eastern Kentucky counties, the PSC noted that the shutdown of the larger Big Sandy unit will mean job losses and a sharp decline in local tax revenue.

To help offset that, Kentucky Power pledged to spend $100,000 annually on economic development initiatives, including $33,000 for job training programs through the Kentucky Community and Technical College System.

Kentucky Power also agreed to double its energy efficiency investments, which includes weatherizing homes, incrementally over the next three years from $3 million to $6 million.

The agreement includes provisions to freeze Kentucky Power's base rates until May, 31, 2015, and to withdraw a pending application to increase rates by 24 percent. It also includes a commitment by Kentucky Power to consider the purchase of 100 megawatts of wind power the next time the company seeks additional generating capacity.

The Sierra Club heralded the agreement as "an important moment in Kentucky history."

 

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.