Here’s Mike responding to a question about PATH from Paul Ridzon of KeyBanc Capital Markets Inc. on last Thursday’s investor conference call:
We aren’t spending a penny on it [PATH] right now, however, because it’s crystal clear that the way PJM sees it, they don’t think they need it until 2020. [emphasis added]
If AEP isn’t “spending a penny” on PATH, then why did they file this Form 730 for their wholly owned PATH front company, PATH WV?
This revised Form 730 says that AEP is spending $4.270 million on PATH in 2011. AEP claimed earlier, in a letter to FERC:
Importantly, the PJM Board has not directed the sponsoring transmission owners to cancel or abandon the PATH Project,2 and some non-development activities and non-capital cost expenditures will necessarily continue in order to maintain the Project in its current state during this period of suspension. Thus, the PATH Formula Rate and Protocols will continue to apply during the Project’s suspension… [emphasis added]
Mike also needs to read the stuff he gets from PJM a little more closely. PJM told the East Virginia SCC that PATH had disappeared entirely from PJM’s RTEP whose ending year is 2026. PJM never said that PATH would ever be needed, in 2020 or any other year.
So did Mike Morris deliberately mislead investors about PATH? Or does he not know what is going on in his own company?