Powering Down: Ohio Community Reckons With Coal Plant Closure

Brick buildings line the wide sidewalks of Main Street in downtown Coshocton, Ohio. On a recent spring day the dogwood trees are blooming. Bright red and white tulips dot the grassy public square, home to the local courthouse and a gazebo.

There are barber shops, an optometrist, a florist, a railroad-themed steakhouse is open for lunch. A trendy public art installment features a small roller coaster designed and built by the local high school and a marquee that blinks “be nice to others.”

But there are also vacant buildings.

Paula Wagner has lived in Coshocton for more than 40 years. She taught Spanish at a local high school for 35. Standing on Main Street, she says Coshocton has been a wonderful place to live, but it isn’t thriving like it once was.

Credit Brittany Patterson / Ohio Valley ReSource
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Ohio Valley ReSource
A train runs through downtown Coshocton, Ohio.

“We still have some businesses, but I think every time one of these big businesses goes out, it takes so many people too,” she said. “They have to move to find jobs outside of town, or they’ll move their whole family.”

In recent years, thousands of jobs have been lost as major employers like General Electric, automotive mat maker Pretty Products, and a WestRock paper mill have closed their doors in the region.

Now, Coshocton is bracing for another blow. At the end of May, two of the three remaining units of American Electric Power’s Conesville Power Plant went dark. The last unit will shutter in May 2020, years earlier than expected. Coshocton is joining the growing list of Ohio Valley communities where coal plants are powering down.

“It’s an integral part of the community,” Denise Guthrie, owner of Mercantile on Main, said of the power plant, which has been operating here for over 60 years. Her shop has for 20 years sold vacuum cleaners and cotton quilting materials. Guthrie, a Coshocton native, greets everyone who comes through her doors like she knows them, largely because she does. Many of her customers, or their families, have worked at the power plant.

“We’re hurting,” she said. “You can physically see that there’s empty buildings, and that’s hard …I remember what it was, you know, but that was the past.”

Guthrie knows first-hand what that loss looks like. Her husband was laid off when the paper mill closed.

“It’s like, bam, bam, bam, you know, our community is hit, you see that,” she said.

Located in eastern Ohio, Coshocton has a mix of rural landscape and industrial labor common to much of Appalachia. It has rolling green hills and the occasional farm stand, but it’s also a place where people take pride in making things. And like so many communities in Appalachia, coal mined here, then later burned here to make electricity, shaped the fabric of this community, and helped give rise to its industrial roots.

In recent years, the community has tried to diversify.

“We have a lot to offer,” said Guthrie. Local wineries have banded together to create a wine trail, and a brewery has opened. Visitors can visit historic Roscoe Village, a restored 19th Century canal town, and hunting and fishing opportunities abound. Coshocton County is home to Kraft Heinz, the country’s largest bacon manufacturer, and American flag producer, Annin Flagmakers, as well as more than a dozen smaller manufacturers.

County and local officials haven’t been sitting idly by as Conesville’s retirement approaches. But as many communities in Appalachia have found, the loss of a coal-fired power plant is a major blow, even in places like Coshocton that are used to dealing with loss.

“I will say, we’re resilient, we’ll survive, we’ll find jobs, somehow we find jobs, we find new opportunities,” Guthrie said. “But it is a concern.”

Closing Conesville

The Conesville power plant began burning coal to create electricity in 1957. Over time, the plant grew to include six coal-fired boilers and could generate 1,590 megawatts of power.

The plant was a significant purchaser of Ohio coal, much of it mined by now-bankrupt Westmoreland Coal Company. At its peak, the plant employed 600 workers.

Plant Manager Ryan Forbes has worked at Conesville for 12 years. He will now oversee its closure.

“I’ve had four family members make lifelong careers here at Conesville, so it’s definitely close to me,” he said.

Shortly after he took the job, AEP announced it was moving up the timetable for the plant’s closure by two years.

Units 5 and 6 at the plant, which were originally scheduled to shut down in 2022, are closing now. Unit 4 is scheduled to close in May 2020. As of June 1, Forbes said, the plant will have 95 workers. They started the year with 160. About 25 employees have found other jobs elsewhere within the AEP system, and some are retiring.

Coshocton is not alone in facing a future without a coal-fired power plant. According to the U.S. Energy Information Administration, from 2007 through 2018, more than 500 coal-fired generators, representing roughly 22 percent of all coal-generated electricity capacity, retired. In the Ohio Valley alone, 34 coal-burning facilities closed from 2009 to 2017.

Cost is the biggest force in the decline of coal, as renewable sources and gas-fired generation are proving cheaper and more flexible.

And there are more closures to come. Utilities have announced the retirement of at least 36.7 gigawatts of coal-fired capacity through 2024 — 117 units in total, according to a recent study by the Institute for Energy Economics and Financial Analysis. Increasingly, utilities are moving up retirement dates for their old coal burners.

Communities in the Ohio Valley are expected to be hit especially hard. In addition to the Conesville closure, utility FirstEnergy Solutions is shuttering three power plants over the next four years. The Bruce Mansfield power plant in Beaver County, Pennsylvania, W.H. Sammis power plant in Jefferson County, Ohio, and Pleasants Power Station in Pleasants County, West Virginia, are all set to close by 2022. The Tennessee Valley Authority voted in February to close the last of the coal-burning units at its Paradise power station in Kentucky, after switching to a new natural gas generator two years ago.

Credit Alexandra Kanik / Ohio Valley ReSource
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Ohio Valley ReSource

“These are huge economic drivers in the regions that they’re in,” said Gilbert Michaud, an assistant professor of practice at the George V. Voinovich School of Leadership and Public Affairs at Ohio University.

Since 2010, eight coal-fired power plants have closed in Ohio alone. Michaud has studied the associated impacts of these closures.

“They employ hundreds of workers, they have this rippling effect through the use of vendors and supply chain … where they are really driving activity and creating jobs and a lot of ancillary industries too,” he said. “A lot of these rural communities that don’t have very diverse economies, these are core industries and core facilities that are really driving economic development and jobs in these regions.”

Michaud and colleagues published a study in February that examined the impacts of the closure of two Dayton Power and Light coal-fired power plants last year in Adams County, Ohio. They found the county and local government and school districts were set to lose $8.5 million in tax revenues due to the closures, 370 direct jobs and another 761 associated jobs.

Michaud said displaced coal plant workers have limited local options to find new employment.

“We did find that there were emerging industry clusters in things like tourism and rural healthcare, but the problem here is that these folks would face like a wage challenge if they were to transition to new careers altogether,” he said. “And so a lot of these folks have been moving away, both throughout Ohio and out of state altogether, unfortunately.”

Credit Alexandra Kanik / Ohio Valley ReSource
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Ohio Valley ReSource

Cutting School

Conesville lies just a few miles outside Coshocton. The power plant’s three massive smokestacks have been a fixture of the small town’s landscape for decades, alongside a convenience store, post office, and a school, Conesville Elementary.

River View Local School District Superintendent Dalton Summers said having the power plant in the district was a huge advantage.

“When you have a power plant in your district it’s almost a separate tax source,” he said.

Credit Brittany Patterson / Ohio Valley ReSource
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Ohio Valley ReSource
Conesville Elementary depended on the power plant for revenue.

Until recently, Conesville was valued at $72.2 million, and it paid a significant amount of property tax and a state utility tax to the county and school district. Of River View’s $22.1 million annual budget, 10 percent comes from the power plant.

Because of that high level of local funding, Summers said River View has traditionally received less funding from the state. Still, the millions paid by the plant locally in taxes made that a worthwhile trade-off.

“River View was able to offer a lot of things that a lot of rural communities wouldn’t be able to offer,” he said, including eight advanced placement courses at the high school, three foreign languages, a swim team, and small class sizes.

The last time the district built a new school it didn’t have to ask local taxpayers to chip in. In fact, Summers said the district hasn’t asked for a new operating levy in more than 25 years.

In October 2017, the Ohio Department of Taxation devalued the plant from $72.2 million to $34.7 million, resulting in a $1 million revenue loss for the school district. When the plant is fully closed, the district is expected to lose $2.2 million.

“We tell people if you just take 10 percent out of your own income, you’re going to have to make adjustments to that,” he said. One adjustment: River View will close one of its four elementary schools next year. In order to avoid other cuts, Summers expects the district will need to ask for taxpayer support in the coming year.

Conesville’s closure is more than just a financial blow, he added. AEP has been a partner to the schools. If they needed something, they could call.

“It’s not going to just affect the school in the sense of money,” Summers said. “You know, we have a lot of employees, we have a we have a lot of kids’ parents that work for this plant, and this could cause relocation on their account.”

Summers said he thinks this closure, unlike some of the others the region has weathered, is different.

“Make no mistake it is a big impact. Any plant that closes in a small community is a big impact,” he said. “A plant like AEP, with the level of jobs that it did provide, the good livings people made that work there, the tax base to the schools  — it’s really big.”

United Front

Local officials are not sitting idly as the plant closes down.

Inside a former hotel now converted to office space, Coshocton Chamber of Commerce Executive Director Amy Stockdale sits with Tiffany Swigert, executive director of the Coshocton Port Authority, and Sherri Gibson, with Ohio Means Jobs Coshocton County.

“This group of ladies sitting right here, we have a really strong united front locally as to how we’re going to help our community through any type of loss,” Swigert said.

Credit Courtesty Ohio Means Jobs — Coshocton County
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Sherri Gibson, far left, at a job fair in Coshocton, Ohio.

Each of these women work with the local business community. They’ve also each been personally affected by a past business closure in the region.

“We have had moments of heartache and then picked ourselves back up and said, ‘okay, we can pull through this, we’re going to be able to do it,’” she said. “And we’ve done it quite well in the past.”

As AEP prepares to close its doors, they have devised a multi-pronged plan to help the community that borrows heavily from their experience dealing with past manufacturing losses.

It includes working to identify sites for new manufacturers and cleaning up existing brownfield sites to boost the tax base. Swigert admits the efforts, driven in part by grant funding, are in the early stages.

For workers facing unemployment, Ohio Means Jobs and Coshocton County Job and Family Services have stepped in to offer resume writing and interviewing classes at the Conesville plant.

“I think it’s really important to recognize that these employees, a lot of them graduated high school and went straight to AEP afterward,” Swigert said. “It’s not that they don’t necessarily know how to interview or create a good resume, but they never had to.”

The local branch of Central Ohio Technical College hosts job fairs. Gibson said interest in employing laid-off AEP workers is running high.

“Just the initial rumors of AEP closing, the surrounding counties lit up on my phone because they know that these workers are loyal, and that they’re faithful and that they are skilled,” she said.

Heidi Binko, executive director and co-founder of the Just Transition Fund, a nonprofit that works with coal communities undergoing transition, said as a growing number of communities find themselves facing coal plant or mine closures, it’s smart to throw everything they have at what comes next.

“There is no one silver bullet, right?” she said. “There is not one thing that is going to work.”

Ohio University Professor Michaud agrees and said in Ohio local economic development organizations and others are heavily involved in supporting workers affected by coal plant closures. But he said his research has shown limited participation by workers.

Michaud has examined transition efforts by communities across the country and the world, and said many try to leverage local assets, such as tourism or agriculture, with varying levels of success. A coal plant closure, he said, is a uniquely large economic loss that is hard to get past.

“A lot of these communities, we found haven’t really fully been able to bounce back to what they once were after a large coal plant closes,” he said. 

He said rural communities with limited job options are wise to offer technical assistance, job training, and reemployment.

“Basically, give folks options so they aren’t forced to leave,” Michaud said. “I think that there’s a lot of people who really care about these issues, and that really love these rural Appalachian communities and counties, and that are trying to do things to help enhance the well being of the folks that live there and keep them in the region.”

Moving Forward

Joe Eggleston has worked at the Conesville plant for six years and he hopes to stay in Coshocton. He attended both a resume and interviewing class hosted at the plant by Ohio Means Jobs. During a mock interview, Eggleston used his quiet confidence to win over Gibson, even when she threw him a curveball question: “If you were a tree, what type would you be?”

Credit Courtesy Ohio Means Jobs — Coshocton County
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Courtesy Ohio Means Jobs — Coshocton County
Resources for job seekers at a recent job fair in Coshocton, Ohio.

Without missing a beat, Eggleston answered. “An oak,” he said, “very strong, very sturdy.”

“I like that,” Gibson grinned. When Eggleston mentioned he’d only missed two days of work in the last six years, she exclaimed, “You’re hired.”

Working at Conesville was a lifelong dream for Eggleston. His father worked there for 25 years before him, and he’s enjoyed his time at the plant.

“It is sad, you know, there’s been a lot of generations that went through here,” he said.

But he also isn’t worried about his last day; he’s confident he will find a job.

“I hoped it would last longer,” he said. “It is what it is, and I’m just going to move forward.”

Coal Comeback? Coal At New Low After Two Years Under Trump

It’s been two years since President Donald Trump took office and began rolling back environmental regulations on the coal industry.

At a November rally in Huntington, West Virginia, the president took credit for a coal comeback in front of a cheering crowd.

“We’ve ended the war on beautiful, clean coal and we’re putting our coal miners back to work,” he said. “That you know better than anybody.”

But federal data about the industry tell a different story.

Mine operators and independent contractors are required to report regular employment information to the Department of Labor’s Mine Safety and Health Administration, or MSHA. Preliminary figures for 2018 show 80,778 people were employed by mine operators and contractors. That’s a record low, and about a thousand fewer than were employed by coal in the last year of the Obama administration.

Credit Alexandra Kanik / Ohio Valley ReSource
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Ohio Valley ReSource

Nationwide, coal plant retirements neared a record high, and overall coal production dropped to the lowest level in nearly 40 years, according to the U.S. Energy Information Administration, a non-partisan government agency that tracks energy trends.

In the Ohio Valley, things looked much the same. In 2018 two prominent Ohio Valley utilities announced a spate of coal power plant closures, federal data show the region lost 150 industry jobs, and Westmoreland Coal, which has a substantial presence in Ohio, declared bankruptcy.

Credit Alexandra Kanik / Ohio Valley ReSource
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Ohio Valley ReSource

However strong exports of one type of coal continued to support jobs for those who provide metallurgical coal, which is used to make steel. That boosted employment in West Virginia, where the president’s supporters say he is keeping his promise to revive the industry. Elsewhere, others aren’t convinced and are looking for ways to fill the void left by coal’s decline.

Environmental Rollbacks

The Trump administration has leaned heavily on the U.S. Environmental Protection Agency to try to boost the region’s coal industry. In March, 2017, Trump signed an executive order that kicked off an in-depth review of a series of environmental regulations. Since then, the administration has proposed a series of regulatory rollbacks aimed at helping struggling coal plants and operators.

In August, the EPA proposed a replacement for the Clean Power Plan, an Obama-era regulation that aimed to cut greenhouse gas emissions from power plants by one-third over the coming decades in an effort to stem the effects of climate change.

The Trump EPA has also moved to roll back existing regulations that govern the storage of toxic coal ash. In December, the agency proposed a rule revision that would allow coal plants to emit more carbon dioxide per megawatt-hour of electricity generated by scrapping a requirement that plant operators install expensive technology that reduces emissions. The agency in December also proposed weakening a regulation that limits mercury and other toxic emissions from coal power plants.

The Trump administration last year was also embroiled in an ongoing attempt to bail out struggling coal-fired power plants, which has since stalled.

But many industry analysts believe Trump’s looser environmental rules have not helped the industry.

“So we had some pretty significant regulatory rollbacks in 2018,” said Trevor Houser, a coal analyst at the independent research company Rhodium Group. “And yet, 2018 was a record year in terms of coal plant retirements.” [Story continues below map]

Houser said there is also little indication any utility in the country is planning on building a new coal-fired power plant, even under the current, more relaxed regulatory environment.

Last month, S&P Global Market Intelligence reported Longview Power LLC, which operates one of the newest and most efficient coal-fired power plants in the U.S. just outside of Morgantown, West Virginia, is seeking investment to shift some generation from coal to natural gas and solar. Energy Secretary Rick Perry visited the power plant in the summer of 2017 to tout the benefits of coal in a competitive energy market.

Across the Ohio Valley, utilities announced more coal power plant closures in 2018. After Ohio-based FirstEnergy Solutions declared bankruptcy, it announced it would close two coal-fired power plants, one in Pennsylvania and one in Ohio. Another of its plants in West Virginia will close by 2022. Another major utility, American Electric Power, announced it was moving up the closure date for some units in its Conesville plant in Ohio to 2019.

A report by the Institute for Energy Economics and Financial Analysis, an energy think tank, found cost is the biggest force in coal’s decline. Renewables and gas-fired generation continue to provide a cheaper and more flexible alternative.

The Met Demand

With more power plant closing there are fewer places to sell thermal coal, which is burned to make electricity, and that has a major impacts coal producers in the region.

“If you look at the share of where the coal was headed, the domestic utility market for West Virginia coal continues to decline,” said Jason Bostic with the West Virginia Coal Association. “And that’s extremely concerning.”

Nationwide and as well as in the Ohio Valley the amount of coal mined dropped to the lowest level in nearly 40 years. Coal exports, however, were up, driven largely by international demand for metallurgical, or met coal, by Asian countries.

Credit Jeff Young / Ohio Valley ReSource
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Ohio Valley ReSource
Kudzu grows near a coal preparation plant in eastern Kentucky.

“There’s the kind of continual disconnect between the poor fate of the thermal coal market and a little bit more resilient met coal market,” Houser said.

To meet higher met coal demand, some mines in West Virginia and Virginia have reopened. Federal data from MSHA show West Virginia mines added a little over 500 jobs in 2018.

Tom McLoughlin trains coal miners in southwestern Virginia, where some met coal mines have ramped up production. He said he’s been busy since Trump took office.

“As soon as Trump got elected It was like somebody taking the finger out of the dam,” he said. “There was all kinds of activity including especially the training, and it’s held up fairly well since.”

But even in West Virginia, where things have looked slightly better for the industry, there were also some high-profile mine closures. A mine in Wyoming County shut its doors in October, putting about 400 miners out of work.

There are a lot of indications that the international demand for met coal, especially by China, is cooling off.

“In 2019 we have some pretty troubling signs about the outlook for the Chinese economy this coming year and that could take the wind out of the sails of the metallurgical coal market pretty quickly,” said Houser with the Rhodium Group.

Temporary Bump?

It’s possible that West Virginia’s bounce in production could be a brief one. Elsewhere around the Ohio Valley coal employment has been stagnant, at best. Ohio mines added just 16 jobs last year, and Kentucky lost almost 400 jobs, according to MSHA data.

Retired Kentucky miner Larry Miller said it’s not surprising the data show the industry has not bounced back. He added that he didn’t have a lot of faith in Trump’s ability to revive the industry in the first place.

“I don’t think it’s sustainable,” he said. “The EPA relaxing of the rules might help some, but I don’t think it’s the main driver for the job loss.”

Miller worked for more than two decades underground and said he made a good living. In his own backyard he said he’s seeing first-hand that coal is often no longer an economic source for electricity. For example, near his slice of western Kentucky a group of utilities is installing an 800-acre solar farm, further evidence, he said, of coal’s declining importance.

“It’s not going to be gone but it’s not going to be the economic engine that it once was,” Miller said. “And I made a good living in coal for a long time and I liked it, so I don’t take pleasure in saying that.”

Credit Becca Schimmel / Ohio Valley ReSource
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Ohio Valley ReSource
TVA’s new gas fired facility, with the older coal units in background.

Recently, the EIA adjusted downward its coal forecast. It says coal production is expected to hit a record low in 2019. Appalachia will see its overall coal production drop from 201.5 million tons in 2018 to 170.1 million tons in 2020, according to the EIA forecast.

Limited Retraining

That doesn’t bode well for miners. Houser, with the Rhodium Group, said while the Trump administration doubled down to boost coal, it has not offered any additional aid for job retraining.

“The past few budget proposals from the Trump administration have actually reduced the amount of support for retraining and economic diversification and coal retraining in coal country,” he said.

Clemmy Allen has been retraining coal miners for more than 30 years for the United Mine Workers of America.

Since 2012, the UMWA’s Career Training Centers in Appalachia has relied on a Department of Labor grant, which provides $5000 in tuition assistance and a $20 daily stipend to West Virginia miners who have been laid off or lost their jobs. He said thousands of miners have taken advantage of the program, but acknowledged it’s also limited.

“It’s very, very difficult for for a person just to … just shut down and go into training and not have money to, you know, meet their monthly obligations,” he said.

Allen said in previous years the center had more federal grants to retrain miners in other states, and he says there are thousands of miners who have lost their jobs over the years who have since found work, but would like to be retrained to do something else.

“We never have enough resources, never,” he added.

Correction: An earlier version of this story incorrectly stated where Tom McLoughlin is based. He is based in southwestern Virginia, not northern Virginia.

Power Companies Set for 2% Rate Increase

Appalachian Power and Wheeling Power are set to raise rates 2% to cover rising fuel expenses.

The two American Electric Power subsidiaries announced the settlement with the state Public Service Commission on Friday. The increase will take effect July 1 if formally approved by the PSC. A residential customer using 1,000 kilowatt hours of electricity a moth would see an increase of $2.05.

The utilities say the increase is “a dollar-for-dollar pass through expense” that does not boost their profits.

They had originally asked for a 4 percent increase, but the PSC’s Consumer Advocate Division said that was too much.

AEP Prepares to Close Six Coal-Fired Plants in Four States

  American Electric Power is preparing to close six coal-fired power plants in four states by the end of May.

The company recently gave WARN notices to workers at the Philip Sporn, Kammer and Kanawha Valley plants in West Virginia, the Muskingum River Plant in Ohio, the Tanners Creek Plant in Indiana and the Glen Lyn Plant in Virginia. The closures will affect more than 250 workers.

Columbus, Ohio-based AEP had announced in 2011 that it would close the plants, along with several others, to meet stricter federal emissions standards.

AEP spokeswoman Carmen Prati-Miller says the company plans to retire more than 6,000 megawatts of coal-fired generation in seven states by the beginning of 2016.

West Virginia Panel OKs $550 Million Coal-Fired Power Plant Deal

State utility regulators have approved the $550 million transfer of an American Electric Power coal-fired power plant by a subsidiary.

The Public Service Commission approved a deal Tuesday that will give Wheeling Power Company a 50-percent interest in the Mitchell Power Plant. The AEP facility is located on the Ohio River.

The Connor Run Fly Ash Impoundment and Dam are not included in the transfer. They will remain under AEP’s control and ownership.

The release says the deal provides protection for Wheeling Power customers against liabilities from the fly ash impoundment.

The release says there won’t be an immediate impact on rates because of the deal.

AEP has more than 478,000 customers in West Virginia.

What Are West Virginia AEP Customers Saying About AEP's Proposed Rate Increase?

The Public Service Commission is hosting meetings across the state as American Electric Power asks to raise electric rates on customers. Wednesday they heard from folks in McDowell County, many of which, oppose the rate increase. On Thursday they were in Mercer County.

Folks at the meeting expressed concerns about:

  • Reliability of Service
  • Tree Cutting and Removal
  • Equipment and Supplies
  • AEP Executive Salaries
  • Elderly Budgets
  • Poor Economy Due Partially to Job Loss in Coal Industry
  • Other More Pressing Needs for Public Offices
  • Crumbling Infrastructure

Allison Barker, Spokesperson for Appalachian Power, which serves Southern West Virginia, points out that the power company is asking for customers to pay more to improve reliability of the service.
“Anyone who was in West Virginia,” Barker said, “remembers 2012 and the derecho and Superstorm Sandy just a few months later. So we’re still trying to recover from that and repair our infrastructure this increase will help us address that.”

AEP is also proposing to use the money to create a program to clear trees on a regular cycle.

Appalachian Power and Wheeling Power, both units of American Electric Power, want to increase rates an average of 17 percent to customers across the board but for residents the utility proposes a 22 percent increase and about 10-12 percent increase on commercial or industrial rates.

According to a release, AEP employs about 2,500 people in the state.

Chairman Michael Albert of the West Virginia Public Service Commission said during the meeting that the AEP will get approval for an increase, but not the full amount.

The public is invited to attend the remaining meetings:

  • November 13, 2014 at 1:00 p.m. & 6:00 p.m. at the Cabell County Courthouse in Huntington
  • November 20, 2014 at 1:00 p.m. & 6:00 p.m. at the Ohio County Courthouse, City-County Complex in Wheeling
  • January 12, 2015 at 1:00 p.m. & 6:00 p.m. at the PSC Office 201 Brooks Street Charleston

Chairman Albert says a decision should be made by Spring 2015 after the cold winter months.

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