CHARLESTON – The Public Service Commission has approved the intra-company sale of the Harrison Power Station from Allegheny Energy Supply Company to Mon Power, with a price tag of $1.1 billion. Both companies are subsidiaries of First Energy.
Only one commissioner dissented in the decision.
The PSC added several conditions to the sale, including a provision that would require AE Supply to refund some of the sale price to Mon Power, if the Federal Energy Regulatory Commission finds that the sale price is inflated, as critics of the sale contend.
The sale is expected to reduce state electricity bills by a collective $16 million initially, though critics allege that it will cause energy prices to rise in the future.
The sale was supported by the company as well as a broad range of labor, industrial and environmental groups.
The Citizens Action Group, a consumer activist organization, opposed the sale.
The PSC also imposed limits on the future dividends Mon Power can pay to its shareholders, subject to certain capital structure conditions.