West Virginia Citizens Challenge AEP/Allegheny at FERC

Keryn Newman of Shepherdstown and Alison Haverty of Chloe have identified over $3 million in charges that AEP/Allegheny are illegally  trying to “recover” from rate payers for their PATH transmission line.  For the past 4 months, these two West Virginians have been involved in the FERC rate recovery process, filing discovery requests and reviewing hundreds of invoices.

Here is their press release about the challenge they filed on AEP/Allegheny yesterday:

On November 29th, two West Virginian citizens, Keryn Newman of Shepherdstown and Alison Haverty of Chloe, filed a Preliminary Challenge to Potomac Appalachian Transmission Highline’s (PATH) 2009 Formula Rate Annual Update on counsel for PATH.  A copy of the Preliminary Challenge can be viewed at the following link:


The Challenge represents over $3M in accounting errors and expenses which Newman and Haverty challenge as not prudent and not recoverable from Regional Transmission Organization PJM Interconnection’s 51-million ratepayers in 2009.  The Federal Energy Regulatory Commission (FERC) conditionally granted PATH’s Formula Rate in 2008 as a mechanism for recovery of development and construction costs for their 275-mile PATH high-voltage transmission line project (FERC Docket #s ER08-386-000 and ER09-1256-000).   PATH is proposed to traverse West Virginia, Virginia and Maryland and is currently being considered by the state regulatory commissions in all three states.   The Formula Rate is administered under PJM Interconnection’s Open Access Transmission Tariff (OATT) Attachment H.   An annual revenue requirement for yearly PATH project expenses has been collected from PJM ratepayers every year since 2008, and includes the addition of pre-construction costs that were accrued prior to March 2008 and are currently being amortized over the 5-year construction period.

Newman and Haverty have been examining PATH’s 2009 Formula Rate Annual Update through OATT discovery protocols since August.

“The more questions we asked, the worse PATH’s accounting looked”, said Newman, who has a background in corporate accounting.

“Treating the wallets of West Virginia electric customers as ATMs is just not right. It is hard enough to pay the bills without the likes of PATH nickel and diming us – hoping we don’t notice”, said Haverty, a mother of four young children.

The PATH companies have until January 3, 2011 to resolve the Challenge with Newman and Haverty.  If a resolution cannot be achieved, Newman and Haverty have until January 24th to file a Formal Challenge with the Federal Energy Regulatory Commission.

Take a look at the challenge and see how the PATH power companies are trying to cheat you out of your hard earned money.