MOUNDSVILLE, W.Va. — American Electric Power says a settlement approved by the state Public Service Commission this week concerning the future ownership of the Mitchell Power Station in Marshall County provides a reliable source of energy for Wheeling Power customers.
The settlement, approved Tuesday, allows Wheeling Power, an AEP subsidiary, to purchase half of the Moundsville plant for $550 million. Another AEP subsidiary, Kentucky Power, will own the other 50 percent.
AEP Communications Director Jeri Matheney said the transaction can be completed by not raising the rates of Wheeling Power customers in West Virginia’s northern panhandle.
“We had to purchase power before. So instead of buying the power, we’re simply owning the plant. It’s virtually an even trade there,” Matheney said.
The approved settlement does not include a large ash pond on the site.
“Wheeling Power will not own part of that ash pond. It will remain under the control of AEP Generating Resources and Kentucky Power,” Matheney said.
The PSC order does address the upkeep of the Connor Run Fly Ash Impoundment and Dam. The commission said customers should be protected from any future liabilities.
Matheney said power generation and the sharing of power generating resources, like the Mitchell Plant, can get confusing at times. She said electric utilities used to have power pool agreements where they shared power among several different operating companies.
“That’s really ended so we need to have our own power for our customers,” Matheney said.
Half of the generating capacity of the Mitchell Plant will essentially cover the electrical needs in the northern panhandle according to Matheney.