AEP To Buy Longview Power Plant

American Electric Power (AEP) has agreed to buy one of the nation’s newest, but troubled, coal-fired electric plants. It also comes with permits to build a natural gas plant.

The Longview Power Plant in Maidsville, West Virginia, near Morgantown, was completed in 2011, but has been plagued by defects, construction issues and bankruptcies.  

The plant’s single unit generates 700 megawatts of electricity.  

In 2019, however, the plant’s owners announced plans for the Mountain State Clean Energy development site that would include a 1,200 megawatt natural gas plant and a solar array that would add another 50 megawatts. Those projects have received permits but have not moved forward.  

In a statement to West Virginia Public Broadcasting, an AEP spokesperson, “These assets are strategically located to help support growing energy demand in the region and would strengthen AEP’s ability to provide reliable, around-the-clock power at affordable prices.“ 

Longview was built as a clean coal facility. “The Mountain State Clean Energy site includes key permits for a future combined-cycle natural gas plant. As demand for energy continues to grow, AEP is focused on advancing flexible generation solutions that support reliability, affordability, economic growth and resiliency.” 

In a separate statement, Emmett Pepper, the policy director for Energy Efficient West Virginia, noted that the plant has been in and out of bankruptcy in its short lifespan.  

“West Virginia ratepayers should not have to pay for power plants or other infrastructure being used for data centers. Period. This announcement seems to be in line with that,” he said. “It is my understanding that West Virginia ratepayers will not be required to pay for this planned purchase. I’m glad that ratepayers won’t get stuck with the bill on this one.” 

The AEP statement noted, “Longview will be owned and operated by AEP’s competitive generation subsidiary, AEP Generation Resources. The proposed acquisitions by AEP do not directly impact customer rates for Kentucky Power, Wheeling Power or Appalachian Power customers. Both transactions are subject to Hart-Scott-Rodino (HSR) review, and the Longview acquisition is also subject to FERC approval. We expect to submit the related filings this month.” 

Pepper offered a word of caution about the deal, however.  

“Going forward, any proposal for Appalachian Power or Wheeling Power customers to buy energy or capacity from the Longview plant should be closely scrutinized,” he said. “As always, customers should benefit from the regional grid by utilizing the least-cost power and AEP stockholders should not get sweetheart deals on the backs of West Virginia ratepayers.”