FirstEnergy and AEP are charging West Virginia consumers FIVE TIMES the current market value of similar coal plants!
Just like real estate is evaluated by comparing it to comparable sales, FirstEnergy's and AEP's proposed sale prices can be compared to recent coal plant sales by other companies in a free market situation with a willing buyer and a willing seller. However, the comparable sales were not intercompany transactions, which conjures up questions regarding self-dealing in the proposed West Virginia sales.
The average cost of three recent, similar coal plant sales is $162.2 per kW.
FirstEnergy's proposed $1.16B price tag for Harrison will cost $785.91 per kW.
AEP's proposed $1.4B price tag for Amos & Mitchell will cost $833.33 per kW.
Do West Virginians really need the capacity these plants will provide, especially at that price? Or do FirstEnergy and AEP really need the boost to their balance sheets that these plant transfers will provide more than we need this capacity? Have the companies proposed a reasonable price for these plants?
Let the West Virginia Public Service Commission know that you do not want to purchase FirstEnergy's and AEP's overpriced coal plants! Submit your comments online now. Be sure to include Case No. 12-1571 for FirstEnergy (Mon Power or Potomac Edison customers) or Case No.. 12-1655 for AEP (Appalachian or Wheeling Power customers).