PSC Files Proposed Data Center Power Rule

The Public Service Commission of West Virginia (PSC) has filed draft rules for supplying energy to data centers. One expert says this version is much better than the first draft.  

Questions that are often raised when a new data center project is announced is where the energy is coming from and will the project raise the costs on other area customers. 

In 2025, the West Virginia Legislature passed House Bill 2014 and directed the PSC to create a set of rules to address energy questions.   

During the legislative debate, some members wanted to require coal fired power plants to operate at 69% capacity – even if that was not the least expensive option.  

Emmett Pepper, the policy director for Energy Efficient West Virginia, noted that while the first draft of the rule didn’t require power plants to run at that capacity, it did say “if you don’t, there are things you have to do.”  

“Now that stuff has been taken back out and we think it’s in a lot better position because we think that power plants should be operated for the benefit of ratepayers,” Pepper said. “If it’s the cheapest option and the utility owns a power plant, absolutely, they should run their power plant. But if it’s not the cheapest option and there are cheaper options out there, then we shouldn’t be having them run a power plant on the ratepayers’ dime, because that’s the key here. Everything they do, we pay for.” 

West Virginia belongs to the grid operator PJM.  

“All of our utilities sell all of their power into PJM and buy all of their power back. And so they sell all the power that they can at the right cost that would make money so if we’re saying to the power companies, actually you should just run it this much regardless of whether PJM buys it for that cost, then the cost to produce the power is going to come from ratepayers,” Pepper said. “And so if they’re selling it for less than what it costs, then, you know, we then we have to pay the difference.” 

That language was removed from the final draft rule.  

“It’s definitely a big improvement,” he said. “I mean, I think we still will have some comments on some aspects of it, but it’s definitely improved.” 

The PSC has filed its proposed rule with the West Virginia Secretary of State’s office, but it will have to go back to the legislature for final approval.