CASE NO. 17-0631-E-P





Joint Petition to reopen for Approval of Amendment to Electric Energy Purchase Agreement and Associated Ratemaking Treatment






On May 11, 2017, American Bituminous Power Partners, L.P. (AmBit), owner of the Grant Town power plant, and Monongahela Power Company (Mon Power) filed a joint petition to reopen this proceeding and for approval of a modified Electric Energy Purchase Agreement (EEPA). The Grant Town project is an electric generation facility located in Grant Town, West Virginia that began operation in 1993 and that uses local waste coal as fuel. Mon Power purchases electricity from AmBit according to the terms of an EEPA entered into pursuant to the Public Utilities Regulatory Policy Act of 1978, 16 U.S.C. Π824a-3(e) and Π2601 et seq. (PURPA). AmBit and Mon Power request that the Public Service Commission approve amendments to the EEPA that will have a rate impact on West Virginia customers of Mon Power and The Potomac Edison Company beginning in approximately October 2017.


This matter is a continuation of proceedings that commenced in 1987 in Case No. 87-0669-E-P. Filings in the preceding case and in this case are available for review at the Commission offices or on line at the Commission website http://www.psc.state.wv.us/WebDocket by clicking the âCaseã link in the left-hand column.


The filing proposes to increase the rate paid to AmBit for purchases under the EEPA. Because Mon Power purchased power costs are paid by customers, the impact of an increased cost of AmBit power will be a rate increase to West Virginia customers. The increase, above the current cost of purchased power, is approximately $3.6 million per year. Because the present rate paid to AmBit is scheduled to be reduced in October, 2017, the increase above the cost of purchased power after October, 2017 is approximately $8.2 million per year. The rate increase and total dollar increases to customers over the rates and amounts that would otherwise be paid after October, 2017 are:



                                                                                        Rate Increase

Energy    Demand       Total Increase

Rate Schedule          Customer Class                      $ per kWh     $ per KW      $ per Year

A&R                          Residential                               $0.00066                            $3,586,000

B&G                          Small Commercial                     $0.00060                            $   436,000

CSH                          Church/School                          $0.00063                            $     23,000

Street Lighting           Lighting                                    $0.00015                            $       9,000

C&E                          Small Commercial and Industrial                                         $0.200   $1,467,000

D&PH                        Medium Commercial and Industrial                 $0.220          $   477,000

K&PP                        Large Commercial and Industrial                                         $0.208     $2,247,000

AGS                          Alternative Generation                                   $0.019          $       2,300


The impact of these changes on an average residential customer, using 1,000 kWh is $0.66 per month, or approximately 0.7{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c}. The impact on other classes of customers is also approximately 0.7{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c}.


The filing also requests that a refund of approximately $8.0 million dollars, presently scheduled to begin in January, 2020, be delayed until 2030. AmBit will continue to accrue interest on the refund amount, until paid.


The filing also requests that an AmBit maintenance reserve account be capped at $8.0 million. This change in the EEPA would have no rate impact on customers.


Any person or entity wishing to participate as a party to this proceeding must file a petition to intervene that complies with Rule 12.6 of the Commission Rules of Practice and Procedure, on or before 4:00 p.m. Friday, June 16, 2017. Members of the public may file comments addressed to Ingrid Ferrell, Executive Secretary, Public Service Commission of West Virginia, P.O. Box 812, Charleston, West Virginia 25323. Comments may also be filed on-line at http://wvvw.psc.state.wv.us/scripts/online comments/defaultcfm by clicking the âFormal Caseã link. The Commission has not yet scheduled a hearing, and will require future public notice when a hearing date is set.




May 26