Curtis Tate, Author at West Virginia Public Broadcasting

Report: Trump Fee On Chinese Ships Could Cut U.S. Coal Exports

In an effort to end China’s dominance in international shipping, the Trump administration wants to charge fees from $1 million to $1.5 million for Chinese ships and Chinese companies to dock at U.S. ports.

A plan by the Trump administration to charge a fee on Chinese ships and Chinese shipping companies to dock at U.S. ports could lower coal exports, a group says.

The policy would mandate exporters to use U.S.-flagged, U.S. made ships, but they could get an exception for using non-U.S. vessels provided the exporter uses U.S.-built ships for at least 20% of the products it exports.

A combination of all of these, according to a report from an ad-hoc coalition of farmers, manufacturers and retailers, and logistics and transportation providers, could reduce U.S. coal exports alone by nearly 25%.

The ports of Norfolk and Baltimore are the top two coal-export terminals in the country, and a significant portion of the coal they export is mined in West Virginia.

About half the coal mined in West Virginia is exported, according to the West Virginia Coal Association.

The Friends of Coal opposes the fees and urged its members to submit comments to the U.S. Trade Representative by March 25.

Most of the coal West Virginia exports is transported by rail. The Association of American Railroads, the industry’s principal trade group, is named in the report.

The proposed fees, the report concludes, could reduce U.S. GDP and worsen the trade deficit.

The report also says the policy could affect agricultural commodities and other industrial products, including automobiles.

It has the potential to divert container ship traffic from U.S. ports to Canada and Mexico, the report says.

Appalachian Power, Mon Power: Microgrid Bill Could Raise Rates

The bill, which would expand the number of microgrids to power data centers in the state, also includes provisions affecting the operation of Mon Power and Appalachian Power’s coal plants.

Appalachian Power and Mon Power have raised significant concerns about one of Gov. Patrick Morrisey’s signature pieces of legislation.

The state’s primary electric utilities say provisions in House Bill 2014 could raise costs for West Virginia customers.

The bill, which would expand the number of microgrids to power data centers in the state, also includes provisions affecting the operation of Mon Power and Appalachian Power’s coal plants.

It would increase the stockpile of coal at each plant from 30 days to 45, and it would require the plants to be ready to operate at 69% capacity when most operate closer to 40%.

It would also throw up barriers for the companies to replace their coal fleet with natural gas, something Mon Power said it intends to pursue in the next several years.

An Appalachian Power spokeswoman said those provisions would lead to rate increases in the millions of dollars.

In a presentation to the state Public Energy Authority last year, Appalachian Power said operating its three plants at 69% over the past 18 months would have cost customers an additional $240 million.

A Mon Power spokesman said the provisions could “put upward pressure on customer rates.”

He also said West Virginia’s current regulatory structure could accommodate large-load customers such as data centers, and Mon Power and Potomac Edison could serve them.

Drew Galang, a Morrisey spokesman, said “Governor Morrisey has made clear that this bill ensures data centers are responsible for paying for microgrid usage and creates a dedicated fund to offset infrastructure costs for electric utilities which will help to keep energy rates down for consumers.”

Groups Protest Appalachian Power Rate Increases At Capitol

If approved by the West Virginia Public Service Commission, the company’s proposal would raise the average customer’s bill by $23.74 a month.

Appalachian Power electricity customers protested a proposed rate increase on the Capitol steps Thursday.

Groups have urged the legislature to do something about the rising cost of electricity in West Virginia.

If approved by the West Virginia Public Service Commission, the company’s proposal would raise the average customer’s bill by $23.74 a month.

Bills have been introduced to freeze rates and suspend disconnections, but they’ve not advanced out of committee.

Gary Zuckett is co- director of the West Virginia Citizen Action Group.

“We’re hoping to get more,” he said. “We’d really like to see community solar pass in West Virginia. We’ve been working on that for three years now.”

Citizen Action Group and others have submitted testimony to the PSC opposing Appalachian Power’s rate proposal.

The PSC will consider the case this summer.

Senate Energy Chair Seeks Recusal On Bill Mon Power Opposes

Sen. Chris Rose, a Monongalia County Republican, will ask Senate President Randy Smith to recuse himself from Senate Bill 505. The Energy committee approved this bill last week, and Rose is one of its co-sponsors.

The chairman of the Senate Energy, Industry and Mining Committee says he’ll seek to recuse himself from a bill opposed by his employer, Mon Power.

Sen. Chris Rose, a Monongalia County Republican, will ask Senate President Randy Smith to recuse himself from Senate Bill 505.

The Energy committee approved this bill last week, and Rose is one of its co-sponsors.

Rose is an engineer for Mon Power, which operates a coal-burning power plant in Monongalia County and another one in Harrison County.

At the Capitol Wednesday, Rose said he’d seek a Rule 43 ruling from Smith.

The West Virginia Government Ethics Act requires lawmakers to avoid conflicts of interest and seek recusal when appropriate, though they may not be excused from voting in every instance.

Depending on how Smith rules, Rose could still be required to vote on the bill.

“So, yeah, I’m going to ask for Senate Rule 43, but ultimately, it will be up to the Senate president to make that determination,” he said. “If he grants it to me, I’ll be recused. If not, I will be required to vote.”

Will Boye, a Mon Power spokesman, said in a statement that the company opposes SB 505, which would affect how power plants operate.

Boye said Rose does not represent the company in his legislative role and has been provided guidance to keep that role separate from his job.

Boye said Rose was responsible for recusing himself from legislation and matters involving the company. Mon Power will not lobby Rose, Boye added.

Brian Tierney, the CEO of Mon Power parent First Energy, told investors last month that the company plans to replace its two coal-burning power plants in West Virginia with gas plants.

Appalachian Power’s president and operating chief, Aaron Walker, has said SB 505 could raise electricity costs in the state.

Charlotte Lane, the chair of the West Virginia Public Service Commission said the bill was redundant. She told the Energy Committee before it voted that the PSC already has the authority to do what the bill says, but it adds to the commission’s administrative burdens.

The committee approved it anyway.

Data Center Bill Contains Provisions To Benefit Coal

Appalachian Power has told state leaders that it would not be economical to operate the coal plants at the higher capacity factor because they have a hard time competing with gas.

A bill to bring data centers to West Virginia also has provisions that could result in higher electricity rates.

House Bill 2014 was introduced Tuesday and immediately backed by Gov. Patrick Morrisey. Its main purpose is to enable microgrids in the state that could power data centers, which are currently concentrated in other regions of the country.

The bill also contains three provisions affecting coal-burning power plants in the state.

First, it requires the plants to be ready to operate at a 69% capacity factor. Currently, none of them reaches that threshold, running closer to the average of 40% in the PJM regional grid, which includes West Virginia.

Second, it requires coal-burning power plants to maintain a 45-day supply of coal at each plant, up from 30 days.

Appalachian Power has told state leaders that it would not be economical to operate the coal plants at the higher capacity factor because they have a hard time competing with gas.

Operating at 69% could have raised costs for customers by $240 million over the past 18 months, the company said in a presentation to the state Public Energy Authority.

An expert witness told the Public Service Commission last year that Appalachian Power’s three plants lost $87 million over a 12-month period in 2023 and 2024 because they had too much coal to safely store on site and burned it when it was not economical to do that.

Emmett Pepper, policy director for Energy Efficient West Virginia, says Morrisey didn’t present those parts of the bill.

“There are multiple giveaways to coal-fired generation, and some of them are on the backs of West Virginia ratepayers,” he said.

The bill also appears to make it more difficult for Mon Power to proceed with its plan to replace two coal plants in the state in the next several years with combined-cycle natural gas plants.

West Virginia Public Broadcasting reached out to Appalachian Power and Mon Power for comment on the legislation.

Morrisey Backs Bill To Land Data Centers, Run Them With Fossil Fuels

The governor framed it as a chance to compete with other regions where data centers are concentrated, including nearby Virginia.

Gov. Patrick Morrisey threw his support behind a bill Tuesday that would bring more data centers to West Virginia and allow coal and natural gas to power them.

Morrisey called House Bill 2014 a once-in-a-generation opportunity to power the future of data, drive economic growth and bring high-skilled jobs to the state.

The bill, introduced Tuesday, would enable the creation of microgrids to power the data centers.

The governor framed it as a chance to compete with other regions where data centers are concentrated, including nearby Virginia.

“The future of digital infrastructure needs power. West Virginia has an awful lot of power. Now it’s the time to act,” Morrisey said. “The Power Generation and Consumption Act establishes West Virginia as the preeminent data center hub by offering an alternative to the over concentrated areas of the country, Northern Virginia, Silicon Valley and Texas, gives us a chance to really shine. “

Current law allows microgrids to be powered by renewable resources. Berkshire Hathaway Energy is building one such facility in Jackson County, powered by solar.

HB 2014 would also allow coal and natural gas to fuel the microgrids.

Utilities have forecast a rise in demand for electricity from data center growth. Lawmakers want Appalachian Power and Mon Power to use their existing coal plants to support the demand.

Executives from those companies, though, have told lawmakers that gas is more competitive.

Environmental groups say renewables and batteries could provide sufficient power for data centers and be built more cheaply and quickly than gas plants.