CHARLESTON, W.Va. — Appalachian Power Company says it’s not yet practicable to propose a schedule on the possible purchase of Black Diamond Power.
APCo said that in a two-page letter to the state Public Service Commission filed Thursday.
The PSC required an update from APCo and Black Diamond after a Sept. 21 status hearing. The PSC began a general investigation into Black Diamond last year after fielding a number of complaints from its customers.
APCo said it does have a draft of a possible asset purchase agreement but it’s still doing its due diligence and isn’t yet ready to submit it to Black Diamond.
APCo’s Thursday letter said after the status hearing it began the process of appoint an internal project manager and a term of internal subject matter experts “that would review and conduct due diligence on Black Diamond Power” and “assist in determining the terms of an asset agreement purchase agreement.”
APCo said after the transaction is completed the team APCo team would be responsible “for integrating the numerous Black Diamond business processes and customer base.”
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 at the status hearing that 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.
Black Diamond, which has about 4,900 customers in parts of Clay, Raleigh and Wyoming counties, had not filed anything with the PSC by 5 p.m. Thursday.
House of Delegates Speaker Roger Hanshaw, R-Clay, is one of those watching the process closely.
“We want to be sure that, if that’s the path the companies choose, it doesn’t come with massive increases in rates to the ratepayers,” Hanshaw said last week on MetroNews “Talkline.” “That’s a situation we’re going to monitor pretty closely. I’m pleased that the Public Service Commission is taking it seriously, I’m pleased that Black Diamond Power — the first time now in a long time — is taking it seriously, and I appreciate that AEP has come to the table to offer assistance in whatever way that the commission and the company has deemed to be appropriate.”