CHARLESTON, W.Va. — The state Public Service Commission wants Appalachian Power and Black Diamond Power to begin talking about a possible purchase deal.
The PSC hosted a status hearing Monday. It’s been a year since the PSC began a general investigation into Black Diamond’s operations after receiving numerous complaints from Black Diamond customers in Clay, Raleigh and Wyoming counties.
After hearing a couple of hours of testimony Monday, PSC Chairman Charlotte Lane gave company representatives 10 days to report back to the commission with a timeline mapping out possible purchase discussions.
“Meet right now and come up with a schedule as to how long it will take to do your due diligence and how long it will take to come up with an asset purchase agreement or whatever form you want to take,” Lane said.
Black Diamond, which is based in Clay, purchases the power that it distributes from Appalachian Power. It currently owes the utility more than $3 million in back payments. Appalachian Power recently suggested Black Diamond be put in receivership.
Former state Treasurer Tom Loehr is now the the chief operating officer of Black Diamond. Loehr was hired three months ago. He testified Monday much has been done in the last 90 days to get a handle on where Black Diamond is and what must be done to pay its bills.
Loehr said the company was in a mess. He said right now some questions have to go unanswered.
“This information is not readily available. The Black Diamond management personnel have not provided support for the systems within Black Diamond to retain the information and compile it in a way we can give it to you,” Loehr said.
He did report progress in other areas. Loehr said an accounting firm has been hired to straighten up the financial books. He said the company is trying to get current on tax bills and other debts including the back payments to Appalachian Power. There’s also been a contractor hired to review the company’s distribution system. Loehr also added he has found the Black Diamond employees hard-working and dedicated. He said some have given good ideas about how the utility can improve service.
Lane asked Loehr if Black Diamond was still interested in possibly selling the company to Appalachian Power.
“Yes,” Loehr answered.
Lane said the PSC has a top priority.
“The commission’s concern at this point, of course, is always affordability and reasonable and just rates but we are also concerned about the service to those 5,000 customers of Black Diamond and we need that problem solved,” Lane said.
House of Delegates Speaker Roger Hanshaw, R-Clay, and state Senator Brian Helton, R-Fayette, attended the status hearing.
Loehr was West Virginia Treasurer in 1989-1990.