CHARLESTON, W.Va – Appalachian Power Company is encouraging the state Public Service Commission to place Black Diamond Power into receivership following a breakdown in purchase discussions.
The PSC ordered Black Diamond to negotiate a sale to APCo earlier this year after an investigation that resulted from multiple complaints filed against the utility. Appalachian Power reported in August that those discussions ceased when it found out Black Diamond engaged a still unnamed third party in sale negotiations.
In a letter filed with the PSC on Friday, APCo outlined its continued concerns with Black Diamond and stated its support for Black Diamond’s being subjected to the receivership process. The letter stated that no sale negotiations actively took place and only two “due diligence” calls occurred, neither of which included Black Diamond owner David Musser.
APCo supports the receivership process to allow for a court-supervised investigation of Black Diamond financial and business operations. Black Diamond’s last correspondence with the PSC on August 31 stated it hoped to provide an update on a sale agreement within two weeks.
The PSC launched an investigation into Black Diamond Power last October following two formal complaints and nearly 50 informal complaints made against the utility. The PSC will hold a hearing with all of the involved parties on September 21.
Black Diamond serves around 5,000 customers in Raleigh, Boone, and Clay counties.