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March 13, 2018

Mitchell plant replaced Big Sandy when Louisa facility was shut down

 

ASHLAND, Ky., March 13, 2018 – Kentucky Power has received authorization from the Kentucky Public Service Commission to sell up to 200,000 tons of high-sulfur Northern Appalachian coal and pass reduced fuel costs onto customers.

The coal is scheduled to be delivered in 2018 to the Mitchell Plant in Moundsville, West Virginia. Mitchell, a two-unit, coal-fired facility that generates 1,560 megawatts, is co-owned by Kentucky Power and Wheeling Power. The plant is operated by Kentucky Power and uses about 3.1 million tons of coal a year, including nearly 325,000 tons of low-sulfur eastern Kentucky coal.

 

The Mitchell Plant in Moundsville, West Virginia, is shown in this file photo. The coal-fired generation plant is owned by Kentucky Power and Wheeling Power.The Mitchell Plant in Moundsville, West Virginia, is shown in this file photo. The coal-fired generation plant is owned by Kentucky Power and Wheeling Power.

 

In its order, the Commission said the proposal “is consistent with the public interest, is for a proper purpose, and should be approved.”

“We are pleased that the Commission approved our proposal,” said Kentucky Power President Matt Satterwhite. “The Commission agreed with us that this plan is in the best interest of our customers by reducing the cost paid for coal used to generate electricity.”

In its application filed in November, Kentucky Power told the PSC that it currently had enough high-sulfur coal to operate at capacity for 53 days. The company’s target is 15 days. Kentucky Power purchases high-sulfur coal from Consolidation Coal Co. through a long-term
contract ending in 2022.

High-sulfur coal is delivered to the power plant via conveyor belt from an adjoining mine. Under the Consol contract, Kentucky Power is obligated to purchase 666,500 tons in 2018, and 500,000 tons in each year from 2019 through 2022. By gaining authorization to seek a buyer through an independent broker, Kentucky Power can reduce its fuel costs. Such costs are charged as a direct pass through to customers through the Fuel Adjustment Clause. Proceeds from any coal sold would be reflected on customer bills through reduced fuel costs.

In its order, the Commission authorized Kentucky Power to use an independent broker to find an unaffiliated third party to purchase the unneeded coal, up to 200,000 tons. The company also can sell the coal directly to an unaffiliated third party. Any sale price is to exceed the 2018 weighted average cost of high-sulfur coal under Kentucky Power’s Consol contract, as well as the market index price. If a buyer is not found, the coal could be deferred to 2019.

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Kentucky Power, with headquarters in Ashland, Ky., provides service to about 169,000 customers in 20 eastern Kentucky counties. It is a unit of the American Electric Power system. AEP serves nearly 5.4 million regulated customers in 11 states.

 

 

Comments  

0 #8 LightsOut 2018-03-18 14:31
More smoke & mirrors in an attempt to make themselves appear as a friend to its customers while trying to save money. Sorry, but this company has all but destroyed its credibility to the public especially after the last fiasco in which the public/customer s clearly saw right through it. Their next scam, ear uh....I mean "plan" is already in motion for the next request for a rate increase due to its attempt to find a coal buyer not working out. This is the foundation they are laying that will give them something to blame for the need of a rate increase. The difference now is that the customer is onto them and their underhanded methods that they employ in order to secure rate increases. Mark it down folks and remember this date in which they put their plan in motion, and it will be one of those "ah ha moments " for us soon to be duped customers.
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0 #7 In the know 2018-03-15 21:18
Quoting More Facts:
Quoting Facts:
Quoting Angela Rice:
An how is this going to help us by power passes everything on to us? Just like the retirement tax. That's the cost to blow up our coal plant as they call it retire cooling tower...

Do you actually know what the so called retirement tax is?


Yes, the retirement rider was added to every bill to pay for the remaining financial worth of unit 2 and the cost to dismantle it or retire it. For instance, you purchase a piece of equipment and you determine it should last 30 years but are forced to retire it early without getting back the return on investment, someone needs to pay the company back for the remaining life of the equipment.


You are correct. I don’t think the customer should be paying big for this though.
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+1 #6 in the know 2018-03-15 16:16
Quoting BUT:
But, isn't that what all the environmentalists around the area wanted?? Everybody wanted to quit burning coal, go to something cleaner and was told gas was the answer!! Started burning gas and the electric bill started raising every year!!! People need to be careful what they wish for!!!!

This company is not your friend. Couldn't have said it any better!!!!
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+1 #5 More Facts 2018-03-15 15:49
Quoting Facts:
Quoting Angela Rice:
An how is this going to help us by power passes everything on to us? Just like the retirement tax. That's the cost to blow up our coal plant as they call it retire cooling tower...

Do you actually know what the so called retirement tax is?


Yes, the retirement rider was added to every bill to pay for the remaining financial worth of unit 2 and the cost to dismantle it or retire it. For instance, you purchase a piece of equipment and you determine it should last 30 years but are forced to retire it early without getting back the return on investment, someone needs to pay the company back for the remaining life of the equipment.
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+1 #4 BUT 2018-03-15 13:05
But, isn't that what all the environmentalis ts around the area wanted?? Everybody wanted to quit burning coal, go to something cleaner and was told gas was the answer!! Started burning gas and the electric bill started raising every year!!! People need to be careful what they wish for!!!!
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0 #3 Facts 2018-03-14 20:52
Quoting Angela Rice:
An how is this going to help us by power passes everything on to us? Just like the retirement tax. That's the cost to blow up our coal plant as they call it retire cooling tower...

Do you actually know what the so called retirement tax is?
Quote
+1 #2 Angela Rice 2018-03-14 04:12
An how is this going to help us by power passes everything on to us? Just like the retirement tax. That's the cost to blow up our coal plant as they call it retire cooling tower...
Quote
+1 #1 In the know 2018-03-13 21:06
Hmmmm, we messed up so let’s make it seem like we are doing a good thing, NOT. This company never ceases to amaze me.
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