Governor wants time to look at AB’s troubles, emergency meeting put off, payment on utility bill promised – WV MetroNews

Gov. Jim Justice wants more time to consider ways to ease financial pressure on Alderson Broaddus University, an emergency meeting that had been set for Friday is being put off, and the university says it’s moving on a payment plan to avoid utilities shutoff.

Justice said “no one wants to see this university close if there’s a way to avoid it. It may very well be inevitable, but we’re going to try really hard to find a pathway.”

Alderson Broaddus, a century-old private college, has been working through major financial problems.

The Higher Education Policy Commission twice delayed providing provisional authorization for the coming school year before finally granting the status with a set of benchmarks.

One requirement has been to make sure alternatives are in place in case a possible mid-year financial collapse would necessitate student transfers and academic records retention.

The Higher Education Policy Commission had scheduled a 10 a.m. Friday emergency meeting over the university’s status, but that was put off following the public statement of concern distributed by the governor on Thursday afternoon. HEPC representatives said staff and commissioners are continuing to work with all involved.

“I’m going to meet with the HEPC, AB leadership, and legislative leadership to make sure we exhaust every single avenue we can before drastic action is taken. It’s simply too important, not only for this prestigious university and its alumni, but also for the entire community of Philippi and Barbour County,” Justice stated.

Congressman Alex Mooney, who represents the district that includes Alderson Broaddus, issued a statement expressing hope for a resolution. Mooney, a Republican, is in a U.S. Senate primary race against Justice.

“I hope the West Virginia Higher Education Policy Commission will consider all options to keep Alderson Broaddus University open and operational. The communities of Philippi and Barbour County deserve easy access to a higher education institution,” Mooney stated.

This week, Alderson Broaddus was hit with a termination notice for its water, sewer, and electric services because of overdue payments amounting to $776,598.70. The utilities would be shut off by 10 a.m. Monday if the bill isn’t paid, according to a notice from the City of Philippi.

On Thursday afternoon, Alderson Broaddus described addressing the utilities shutoff through a joint agreement

As part of the agreement, AB reported agreeing to present a $67,000 check to the City of Philippi on Monday. After that, university leaders indicated, AB and the City of Philippi plan to use a structured plan to make regular payments toward resolving the remaining balance and considering future charges.

“The collaboration between AB and the city of Philippi highlights their commitment to open communication and mutual understanding,” Alderson Broaddus stated in a press release.

Besides providing the termination notice, the City of Philippi had also filed a petition to the state Public Service Commission to require Alderson Broaddus to show cause why the electric, garbage, sewer and water service should not be terminated. That petition was timestamped at the PSC on Thursday afternoon.

According to the PSC filing, the last time Alderson Broaddus was current on its accounts with the city was August 2021. The filing states that to help AB manage cash flow, the city had permitted AB to pay twice a year, matching when tuition was received.

Last December, the city and university entered into a deferred payment agreement of $16,000 each month. But the city says AB failed to make its payment this past May and then failed to pay the current bill.

A chart with the city’s PSC filing shows Alderson Broaddus overdue $428,217 on electric, $85,501 on garbage, $5,107 on its municipal fee, $2,074 on outside lights, $62.50 on sprinklers, $158,633 on sewer and $101,455 on water.

City officials moved toward the termination notice after discussion at a council meeting last week.

The city’s filing with the PSC describes the same revised terms that the university outlined in its Thursday afternoon press release, including the requirement to make a $66,953 payment by 10 a.m. Monday.