It may also be that the mine bankruptcy is not trivial. They have to keep pumping and treating toxic water because the coal seam is below the water table, but the market demand for coal is so low that they aren't selling much (Hatfields Ferry is closed). So they have to keep hemorrhaging money to treat water, but have no income to balance it. What kind of businessman thought up this idea anyway?
JBK ________________________________ From: mvcac-bounces@osenergy.org mvcac-bounces@osenergy.org on behalf of Andrew Liebhold aliebhold@gmail.com Sent: Wednesday, October 09, 2013 8:30 AM To: Duane; James Kotcon Cc: mvcac@osenergy.org Subject: Re: [MVCAC] Longview Bankruptcy Continues
That makes sense - You've got a power plant and coal mine that are bankrupt because the power plant doesn't work or make money so you give all your top executives big bonuses...
On Wed, Oct 9, 2013 at 7:59 AM, Duane <duane330@aol.commailto:duane330@aol.com> wrote: UPDATE ON CHAPTER 11 BANKRUPTCY Longview: Must keep employees --- Seeks judge’s OK to set up retention fund
BY ALEX LANG, The Dominion Post, October 9, 2013
Longview Power LLC is asking a judge to allow it to create a pool of $3.7 million for a retention program designed to help prevent the loss of some knowledgeable employees who could leave due to uncertainty with the bankruptcy process.
Longview made the request in a Monday court filing in U.S. Bankruptcy Court for the District of Delaware. In late August, Longview Power filed for Chapter 11 bankruptcy. One of the company’s main assets is the Longview Power Plant in Maidsville.
The employees are the lifeblood of the business, according to the filing. In many cases, the employees are highly trained and can’t be easily replaced. Longview stated in the filing, it believes there is significant risk for employee attrition that could disrupt the business. There is a fear that employees might leave because of their unfamiliarity with the bankruptcy process.
Longview would like to keep the employees based on the nature of the business and the fact that new employees have to undergo extensive training. The retention program will cost less than recruiting and training replacement employees, the filing argues.
MEPCO also relies on a core group of highly trained employees. MEPCO, a Longview affiliate, is included in the bankruptcy filing. According to the filing, 126 MEPCO and Longview employees would be eligible and the average award would be $29,646, with the max- imum set at $77,250. This is in addition to salaries.
The payments will be made during 18 months, with the employee receiving 25 percent of total payment after six months, another 25 percent after 12 months and the final 50 percent after 18 months. Participants will be able to keep cash payments if they are employed by Longview at each one of the benchmarks or they are terminated without cause.
The program will cover about 20 percent of employees. Not included in the program are Longview officers, any employee who reports to the Longview board or manager, is appointed directly by the board or those who have managerial control of Longview’s operations.
Companies and individuals who want to object to the program have to file by Oct. 21 and a hearing is scheduled for Oct. 28.
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Citizens’ group to fight Harrison power plant deal WV News and Associated Press, October 9, 2013
West Virginia Citizen Action Group said Tuesday it will appeal the state’s approval of a $1.1 billion deal for the sale of the Harrison Power Station, arguing the value of the coal-fired plant is inflated by some $257 million.
The Public Service Commission approved the transaction late Monday, saying it would reduce Mon Power rates by $16 million a year. The deal involves Ohio-based FirstEnergy subsidiaries Mon Power and Potomac Edison, and affiliate Allegheny Energy Supply.
Mon Power would buy the remaining 80 percent of the 1,984-megawatt plant that it does not currently own. In exchange, Mon Power would sell 8 percent of its interest in the Pleasants Power Station to Allegheny Energy Supply.
In his dissent, Commissioner Palmer said the attempt by Commissioners Albert and McKinney to "shield ratepayers is commendable, but somewhat ineffective," noting that the wholesale market sales margins being used in the majority's conditions would have already been used to lower the other portions of the rates Mon Power customers pay.
"The companies characterize the Harrison acquisition as a financial hedge against the wholesale market," Palmer wrote. "The majority supports its decision that the transaction as modified is in the public interest by describing [their additional conditions] as a hedge against Mon Power owning a large coal-fired plant.
"Either hedge, however, comes at a time when capacity prices on the wholesale market are at historically low levels," Palmer wrote. "Rushing into the expensive, long-term commitment ... without a more thorough evaluation of other options, including the potential construction of a new natural gas combined cycle plant or the acquisition of part or all of an existing natural gas-fired power plant, is unreasonable."
(So the WV PSC appears to be protecting WV coal at the expense of electricity users.)
Duane Nichols, Cell- 304-216-5535.
www.FrackCheckWV.nethttp://www.FrackCheckWV.net
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