Pleasants County Commissioner Jay Powell, left, and Gov. Jim Justice, right, are presented with framed photos of Pleasants Power Station by FirstEnergy Solutions CEO John Judge during a 2019 bill signing ceremony for a tax break for the plant. (File Photo)

CHARLESTON — Gov. Jim Justice said Wednesday that he believes that a deal to save the Pleasants Power Plant south of St. Marys could be close as two companies agree to a letter of intent to explore the sale of the plant.
According to Pleasants County Commission President Jay Powell, Texas-based Energy Transition and Environmental Management (ETEM) — the owner of Pleasants Power — and California-based Omnis Fuel Technologies have signed a letter of intent towards a possible purchase of Pleasants Power for hydrogen production.
“We continue to celebrate every victory in regards to Pleasants Power Station,” Powell said by text message Wednesday afternoon. “This indicates Omnis intent to pursue the purchase of the power plant. This is another hurdle that has been overcome.”
Asked for an update on Pleasants Power during his Wednesday morning virtual administration briefing at the State Capitol Building, Justice said he has not been directly involved with ongoing negotiations that could keep the plant open and its 154 workers employed.
“I can tell you in generalities that I’ve had a bunch of discussions with people who are on the inside,” Justice said. “I don’t have concrete answers to be able to tell you. I do think we are very, very close to a solution that will save the power plant. We need to absolutely do that.”
ETEM had planned to begin demolishing the plant in the near future, but the letter of intent with Omnis will allow the company to further explore the possibility of using Pleasants Power to produce hydrogen instead of generating electricity from burning coal.
Powell remained cautiously optimistic but stressed that the letter of intent did not mean that Omnis would purchase the plant. He thanked Justice for his support, as well we the Legislature, the Public Service Commission and the state Public Energy Authority.
“We are not done with the acquisition yet; however, this was a huge step in the right direction,” Powell said. “I can say many are working around the clock to continue down this road in hopes that a transaction can occur later this summer…We recognize there is still work to be done, but we continue to thank the good Lord for the progress that is being made daily.”
Energy Harbor (formerly FirstEnergy Solutions) has been leasing Pleasants Power from ETEM after previously owning the plant, which was supposed to shut down last week, But in a letter last Wednesday to regional wholesale energy transmission company PJM Interconnection, Energy Harbor requested a change Pleasants Power’s status to “mothballed” through July 31 while negotiations between ETEM and Omnis continue.
According to a filing with the West Virginia Public Service Commission at the end of last month by Monongahela Power Co. and Potomac Edison Co., an agreement between ETEM and Omnis would need to be signed by Saturday, June 10, with a closing of the transaction by July 31.
Justice said he was meeting with one of the principals involved in the negotiations Wednesday night.
“I don’t have a magic wand that I can say ‘guarantee,’ because this is outside of my realm,” Justice said. “But we are absolutely going to not quit until we someway somehow make this a reality. I do think we’re close.”
Justice has been supportive of keeping Pleasants Power open, going so far as to sign a $12.5 million annual break for Energy Harbor on business and occupation taxes to the state in 2019 at the base of one of the plants two cooling towers.
Both Justice and the West Virginia Legislature expressed support for the plant being purchased by Mon Power/Potomac Edison after Energy Harbor announced last year it would shut down Pleasants Power at the end of May. The plant was first slated to be shut down in 2018, but deactivation of the plant was moved to 2022. Deactivation was put on hold again in 2019 thanks to the tax break.
Mon Power/Potomac Edison is also continuing negotiations with ETEM towards a letter of intent to lease the plant, expecting to submit the deal to the PSC for approval by mid-June. While Pleasants Power would not be producing coal-fired electricity, Mon Power/Potomac Edison would maintain the plant from June to May 2024 and keep the plant’s 154 workers employed while it continues to explore buying the plant.
Mon Power/Potomac Edison Mon Power/Potomac Edison are also seeking a temporary surcharge on its residential, commercial, and industrial customers in North Central West Virginia and the Eastern Panhandle to cover the costs of leasing and maintaining Pleasants Power. The companies originally sought a $36 million temporary surcharge, though the companies have since admitted the costs could increase.
“This power plant, I think, is in the second-best shape of any of those in the state,” Justice said. “If there is anything we absolutely need to save, especially for that community and that incredible county that needs it so badly … it is so important and we’re not going to stop until someway somehow we pull off something that works.”
Steven Allen Adams can be reached at sadams@newsandsentinel.com