West Virginia Public Service Commission Chairman Mike Albert is urging Appalachian Power Company and other parties to reach a settlement as soon as they can on the company’s coal debt case.
The PSC was set to begin an evidentiary hearing Tuesday morning on Appalachian and its sister company Wheeling powers’ plan to securitize its $300 million debt from the high cost of coal that began in 2009. State lawmakers approved a bill last year that opened door to allow the debt to be paid off by selling bonds and then paid back over a several year period.
APCO attorney William Porth told Albert all interested parties are close to a final settlement on the case.
“We should be able to finalize that in fairly short order,” Porth said. “The effort requiring a little more time is a proposed financing order, which the commission is aware, is a very long and detailed document.”
Appalachian Power Communications Director Jeri Matheney said Monday the bonding of the debt is the best option for the company.
“With the securitization we’ll be able to spread out the cost and not increase rates for customers,” Matheney said.
Chairman Albert said the sooner the settlement the better.
“I think we’re in a posture of maximum flexibility. By the same token, the longer it is before we get that the further out is the date in which we can sit down and have a hearing on it,” he said.
The settlement will involve the state Consumer Advocate’s Office, those who are owed the money for the coal and a citizens group among others.
PSC Chairman Albert told Appalachian Power and others he plans a full hearing on the terms of the settlement and he hopes it can be before the end of March.
“If there is a stipulation we want a full presentation made and we want the opportunity to have our consultants examine the stipulation and determine whether or not in their expert opinion it’s fair and reasonable,” he said.
