Apr. 28—CUMBERLAND — An AES Warrior Run representative says the company has no plans to discontinue its efforts to provide energy from its plant in Cumberland.

"There have been no decisions to close the Warrior Run plant, and any transition there will not be immediate," said Stephanie Cathcart, vice president of communications, in an email. "We continue to explore and evaluate ways to utilize Warrior Run for low-carbon solutions that can continue to serve the local community."

First Energy, the parent company of Potomac Edison, announced last week that it is pursuing a buyout of its contract with AES, which produces coal-fired energy.

A buyout figure of $357 million has been reached between Potomac Edison and AES to terminate the contract seven years early. The proposal has been submitted to the Maryland Public Service Commission, which must approve the buyout.

Potomac Edison officials said the buyout could save customers roughly $80 million in surcharges.

According to Cathcart, AES has 60 full-time employees. "We have a strong track record of working closely with our employees and we don't expect this to be any different," she said.

AES remains committed to alternative energies, she added.

"Since 2016 AES has been transforming our portfolio and accelerating our decarbonization goals. Like Maryland, AES has set ambitious sustainability targets for carbon-free energy future," she said.

Under the terms of the agreement, AES will continue to operate the Warrior Run plant through at least May 2024.

Dave Caporale, president of the Allegany County Board of Commissioners, said he spoke with AES representatives by phone last week.

"We had a very good call with them," said Caporale. "What they are sort of doing is potentially moving into a wood bio-mass that is more renewable and it is considered more of green resource than coal. The federal government and state government are gradually moving away from the coal business.

"This is something we have been looking at for the better part of a year working with them," he said. "That would also be a shot in the arm for the timber industry, which was adversely affected by the (Luke paper) mill closing."

The Luke mill was closed in June 2019 by the Verso Corp. due to a decline in demand for coated paper, rising costs and competition from overseas.

"So if the pieces come together, what this could be would be new green pilot program for the state of Maryland," said Caporale. "It could grow and wouldn't shrink or eliminate the facility. They are committed and this is the first steps toward that."

Caporale said county officials "were a little alarmed at the beginning but after the discussion are seeing (AES) move to the next level, which is a positive."

Caporale added, "I think what we are learning is that with the different energy companies, how some of the resources are (included) in their portfolio. It sounds like First Energy is shifting a little bit more out of coal and what it enables AES to do is enter into a partnership with a company that would embrace this concept and help grow it forward."

Greg Larry is a reporter at the Cumberland Times-News. To reach him, call 304-639-4951, email glarry@times-news.com and follow him on Twitter @GregLarryCTN.