Westmoreland Coal Company said late Wednesday that it has amended its power supply agreement with Dominion Virginia Power, a subsidiary of Dominion (D).
Under the amendment, Westmoreland will begin to provide the required contracted level of energy to Dominion through power purchase contracts, in lieu of providing it by operating Roanoke Valley Power Facility.
Beginning March 1, Westmoreland will create cash savings as it will no longer be required to operate the facility.
“By no longer operating ROVA, we will reduce our projected cash flow burn by $13 million through March 2019, with the most meaningful cash savings occurring in 2019,” CEO Kevin Paprzycki said. “Additionally, we are now more aggressively pursuing the sale of the remaining physical facility. I’d like to thank the team for their great efforts in 2016 which resulted in this transaction.”