Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, December 17, 1993 TAG: 9312170086
SECTION: BUSINESS PAGE: A21 EDITION: METRO
SOURCE: GREG EDWARDS STAFF WRITER
DATELINE: LENGTH: Medium
An administrative law judge with the Federal Energy Regulatory Commission has decided that the communities of Bedford, Danville, Martinsville and Richlands are entitled to seek a commission order requiring Apco and its parent, American Electric Power Co., to transmit power to the cities.
Earlier this year, the commission asked the law judge, Samuel Gordon, to sort out a contract dispute between Apco and the municipal power companies, members of the Blue Ridge Power Agency. Utilities operated by Salem, Radford and Virginia Tech also are members.
Apco contends the smaller utilities are required by contract to buy all their electricity from Apco. The municipal utilities are dependent on Apco for the transmission of power.
But the utilities want to buy 50 megawatts from PSI, an Indiana utility, and want the federal commission to order Apco to transmit that power to them under provisions of the 1992 Federal Energy Policy Act. That act requires utilities to open access to their power lines.
The municipal utilities argued at a hearing in September that they have to buy only a specified amount of power from Apco under their contracts. They project saving $12 million to $15 million over 10 years by buying some of their power from PSI.
Apco spokesman Don Johnson said the company has filed a brief with the commission explaining why the law judge's recommendation is incorrect.
It's much too early to decide what steps Apco might take if the full commission finds against the company, Johnson said.
The commission is expected to decide the outcome of the dispute in January.
by CNB