Legal
1019
PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON
CASE NO. 16-1146-E-4435T
MONONGAHELA POWER COMPANY and
THE POTOMAC EDISON COMPANY
Joint application for modernization and improvements
program for coal-fired boilers and implementation of an
associated cost recovery surcharge component under the
provisions of Enrolled Committee Substitute for House Bill
4435.
NOTICE OF FILING AND HEARING
On August 22, 2016, Monongahela Power Company and The Potomac Edison Company (Companies) filed an application for approval of a modernization and improvement plan (MIP) for coal-fired boilers at electric power plants under the provisions of Enrolled Committee Substitute for House Bill 4435 that was enacted during the 2016 regular session of the West Virginia Legislature, codified at W.Va. Code §24-2-1L (Act). The new Act authorizes the Public Service Commission of West Virginia to approve programs to modernize and improve coal-fired boilers involving the investment of capital and incurrence of certain expenses at power plants located in the state and owned, in whole or in part, by an electric utility, and expedited cost recovery of the incremental costs associated with such programs.
In its Application, the Companies propose to implement a MIP for their coal-fired boilers at the Harrison and Fort Martin Power Stations and an associated cost recovery surcharge component. The Companies supplemented its filing on September 27, 2016, to add two additional projects. As updated, the capital investment in plant placed in service for all the MIP projects is expected to be approximately $65 million in 2016 and $21 million in 2017. The overall proposed annual revenue associated with the MIP is approximately $7.4 million.
The MIP currently involves projects that will assist Fort Martin Power Station in complying with Mercury and Air Toxics Standards (MATS) air emission reduction requirements and Harrison Power Station in meeting MATS and Cross-State Air Pollution Rule 13 (CSAPR) requirements. These projects will improve electro-static precipitators, provide advanced technology for mercury and other toxics control, improve existing flue gas desulfurization equipment, enhance continuous emission monitoring, undertake boiler tuning, improve certain other existing controls, and improve the selective catalytic reduction system. Further details regarding the projects are included in the Application, which is on file and available for public inspection at the Commission’s offices at 201 Brooks Street, Charleston, West Virginia, and which may be viewed on the Commission’s website, www.psc.state.wv.us.