PSC Ordered Timeline For Black Diamond Power Deal
The West Virginia Public Service Commission requested a progress report after Black Diamond Power failed to pay $3 million.
Updated on Sept. 27, 2026 in Utilities
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The West Virginia Public Service Commission has ordered Black Diamond Power and Appalachian Power to submit a timeline for potential acquisition talks. The directive follows a status hearing addressing Black Diamond Power's $3 million in back payments to Appalachian Power.
Why it matters
The intervention stems from a year-long investigation into maintenance and service quality complaints for the 4,900 customers served by Black Diamond Power. Appalachian Power has suggested that the commission place the utility into receivership due to the company's financial instability.
Black Diamond Power provides service to approximately 4,900 customers across Raleigh, Wyoming, and Clay counties. The utility currently holds $3 million in unpaid obligations to Appalachian Power.
The players
Public Service Commission
This is the state agency in West Virginia responsible for regulating public utilities to ensure safe and adequate service at reasonable rates.
Black Diamond Power
This is a utility company serving approximately 4,900 customers in West Virginia that is currently under investigation for service and maintenance failures.
Appalachian Power
This is a major electric utility company operating in West Virginia that is currently seeking $3 million in back payments from Black Diamond Power.
Tom Loehr
He serves as the chief operating officer of Black Diamond Power and was hired by the firm approximately three months ago.
The details
Black Diamond Power has not negotiated wholesale purchase rates with Appalachian Power in over a decade, contributing to its current financial struggle. The commission continues to examine operational issues impacting residents while considering the transfer of service responsibilities.
Timeline
Over 10 years ago: Wholesale purchase rates were last negotiated.
Over a year ago: The Public Service Commission investigation began.
3 months ago: Tom Loehr was hired as chief operating officer.
Last week: A status hearing was held regarding the deal.
October 1, 2026: The deadline for submitting a report on the timeline for next steps.
Market Landscape
The potential acquisition highlights the increasing consolidation pressure on small, regional utility providers unable to maintain infrastructure costs. This shift mirrors the broader trend of larger regional utilities absorbing distressed, smaller providers to ensure grid reliability.
Customers served by Black Diamond Power may face uncertainty regarding service continuity and future rate structures while acquisition talks proceed. Those in the region should monitor official PSC notices for updates on maintenance requirements and potential provider changes.
The takeaway
Reliable utility service depends on the financial viability of local providers to meet long-term maintenance and infrastructure demands. Residents served by smaller utilities should remain informed about regulatory actions that could impact their service provider's stability.
What happens next
Black Diamond Power and Appalachian Power are required to report a formal timeline for potential deal steps to the West Virginia Public Service Commission by October 1, 2026.
Further reading
Learn more about local infrastructure oversight on the Utilities page.
Source note: This article includes information reported by WV MetroNews.
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