MAIDSVILLE, W.Va. (AP) — West Virginia’s Longview Power has filed for bankruptcy.
The coal-fired plant operator on Tuesday announced it filed for Chapter 11, saying low natural gas prices, a warm winter and the coronavirus pandemic have caused a decrease in electricity demands.
A statement from Longview said the company will continue to operate during the bankruptcy reorganization process.
“This filing is unfortunate but necessary given the current depressed power prices, which have further dropped more recently due to the terrible COVID-19 pandemic sweeping the nation and dramatic effects of the pandemic on the economy,” said Jeff Keffer, CEO.
Longview says the plant is cheaper to operate and more efficient than other coal-burning plants. Former U.S. Secretary of Energy Rick Perry toured the facility in 2017 and said the plant’s technology provides “the ability to deliver a secure, economical and environmentally good source of energy.”
The company said the filing doesn’t effect its solar and natural gas expansion projects.