CHARLESTON, W.Va – The back-and-forth battle over Black Diamond Power remains heated as Appalachian Power Company, the State Public Service Commission, and BDP attempt to come to a conclusion over the utility’s future.
All parties meet before the PSC on Monday for a status hearing after months of contention since the commission ordered BDP to negotiate a sale to APCo. In a series of filings to the PSC last week, the two companies unmasked more issues in the attempted negotiations.
A letter sent by BDP and dated for September 15 responded to APCo’s request earlier this month that Black Diamond be placed into receivership following the breakdown of sale talks. It states that the company opposes receivership and is pursuing avenues to maintain standalone operations with local offices.
Further explanation states BDP named Tim Loehr its new chief operating officer in June and indicated that new management has had difficulty accessing financial records. Additionally, an attachment identifies a separate company called “Black Diamond Utilities, Inc.” that could petition the PSC to purchase BDP’s existing assets.
APCo filed its response to the letter on September 18 and stated it was unaware of Black Diamond Utilities’ existence. Appalachian Power determined through public records that BDU was formed on July 2 with the newly named BDP COO Loehr as its sole director.
In addition to reiterating its stance on receivership, APCo outlined a significant debt owed by BDP as part of the power purchase agreement between the two companies. Appalachian Power alleges Black Diamond owes it $3,522,115 for power provided.
APCo is the sole wholesale power provider for Black Diamond through that agreement.