Tag: Appalachian Power

Sierra Club, PSC Reach Settlement Over Coal Plant Operations

Appalachian Power has told state lawmakers that its three plants – John Amos, Mountaineer and Mitchell – operate close to the average in PJM.

The Sierra Club and the West Virginia Public Service Commission have settled their dispute over the commission’s 2021 order for Appalachian Power to operate its coal plants at a 69% capacity factor.

Few coal plants across the country come close to that as they compete with natural gas and renewables. In the 13-state PJM transmission region, which includes West Virginia, coal plants operate at about 40%.

Appalachian Power has told state lawmakers that its three plants – John Amos, Mountaineer and Mitchell – operate close to the average in PJM.

Last week, PSC chair Charlotte Lane told a Senate committee that 69% was a target but not a requirement. The settlement reflects Lane’s comment.

Lawmakers have pressed Appalachian Power on why it doesn’t run its plants more or build new ones. Company officials have said it’s been hard for the coal plants to compete with natural gas.

“This settlement successfully prevents the PSC from interfering with electricity markets on coal’s behalf and protects local residents from covering the cost,” said Jim Kotcon, chair of the Sierra Club’s state chapter. “Still, West Virginia decision makers continue to double down on coal.”

An Appalachian Power presentation to state officials last year showed that following the 69% directive would raise costs for electricity customers.

Senate Bill Could Raise Costs, Appalachian Power President Says

The bill would encourage the West Virginia Public Service Commission to favor fossil fuel and nuclear-generated electricity. The vast majority of the state’s electricity already comes from coal.

Appalachian Power’s president says a bill in the state Senate could raise electric bills for residents.

Aaron Walker, Appalachian Power’s president and operating chief, says the company will follow the policy path the legislature chooses, but that Senate Bill 505 could raise costs.

The bill would encourage the West Virginia Public Service Commission to favor fossil fuel and nuclear-generated electricity. The vast majority of the state’s electricity already comes from coal.

SB 505 would discourage investment in renewables because they are intermittent sources, meaning they don’t generate power all the time.

On a nationwide level, though, wind and solar have surpassed coal in electricity generation.

“Appalachian Power and Wheeling Power use a diverse approach to generating electricity, which helps keep costs down and attract new customers while retaining existing ones,” Walker said in a statement. “If this bill passes, it would negatively impact our ability to meet the needs of our new and existing customers who require a diverse generation portfolio.” 

He added it could make it more difficult for the state to attract and retain businesses.

A spokeswoman said the company is following the bill and will have a representative to speak about its concerns.

The Senate Energy, Industry and Mining Committee approved the bill last week and sent it to the Government Organization Committee.

Most Appalachian Power Bills Set To Decrease, But Not By Much

While residential customers won’t see an increase, commercial and industrial users will, to the tune of 1.4% and 2.6%, respectively.

Thirty-nine cents a month. That’s how much the average electricity user’s bill will go down thanks to a West Virginia Public Service Commission order on Tuesday.

Last April, Appalachian Power sought recovery of about $20 million in fuel costs, and Tuesday, the PSC approved it.

While residential customers won’t see an increase, commercial and industrial users will, to the tune of 1.4% and 2.6%, respectively.

Appalachian Power is also seeking a base rate increase from the PSC. If approved as proposed, it would raise the average residential customer’s bill by 16%, or $27.

Commercial and industrial users would pay more, too. Hundreds of people, and at least two school boards, have submitted comments to the PSC in opposition to the increase. The PSC will consider the case this summer.

W.Va. Improves Solar Ranking For 2024, But Still Lags Neighbors

West Virginia ranked 38th for solar installation in 2024, an improvement over 50th in 2023 and 46th in 2022.

West Virginia improved its position last year in solar installation, but it still lags neighboring states.

West Virginia ranked 38th for solar installation in 2024, an improvement over 50th in 2023 and 46th in 2022.

Still, according to data from the Solar Energy Industries Association and Wood Mackenzie, West Virginia is behind all of its neighboring states in solar capacity, with just over 200 megawatts. Of that, 167 megawatts was installed last year.

One megawatt can power about 173 homes. First Energy subsidiary Mon Power activated its first two solar sites in the state last year in Monongalia and Marion counties.

A third is under construction in Berkeley County, and Mon Power will seek approval from the Public Service Commission for two others in Tucker and Hancock counties.

Residential, commercial and industrial customers can subscribe for solar credits.

Appalachian Power has built solar facilities, but so far, all of them are in Virginia. 

Executive: Not Even A Data Center Would Increase Coal Plant Use

Members of the Senate Energy, Industry and Mining Committee pressed Randall Short, director of regulatory services for Appalachian Power, on why the company’s three West Virginia plants didn’t operate more.

Members of a state Senate committee asked an Appalachian Power executive Tuesday what the company could do to burn more coal. The answer: not much.

Members of the Senate Energy, Industry and Mining Committee pressed Randall Short, director of regulatory services for Appalachian Power, on why the company’s three West Virginia plants didn’t operate more.

Short explained that the plants – John Amos, Mountaineer and Mitchell, operate near the 40% average of coal plants within PJM, the 13-state region that includes West Virginia. 

He said the price of gas is largely what drives the decision to run the plants. That is, they’re dispatched when it’s most economical.

“Natural gas sets the market, and it’s beneficial to the customers who use natural gas when the price is $2 or $3 an MCF (thousand cubic feet), but at those prices, it’s very hard to get a coal contract that can beat that price,” Short said.

Appalachian-Power-Coal-Fired-Generation_WVPEA_July-31-2024Download

Short also said federal regulations, unless dramatically altered, would force big changes to the way the plants operate, including at least partial conversion from coal to gas, or their retirement.

“We will have to either co-fire with gas to a certain percentage (or) we will have to do carbon capture for a percentage,” he said. “But as the rules currently stand today, they have a very short life ahead of them.”

Short was also asked what impact a big electricity user, such as a data center, would have on coal plant operations. It wouldn’t necessarily mean they’d burn more coal, he said.

“If we were to land a sizable new customer, we may have to acquire additional capacity,” he said. “If our capacity obligation, that’s the total amount of capacity we have, if that exceeds what we currently have, we would add generation. Now, once we have them, the amount of time we run either that new plant or the existing plants we have will still rely upon economic dispatch.”

Appalachian Power is seeking a 14% increase in base rates. The West Virginia Public Service Commission will consider that case this summer.

First Energy CEO Says Gas Will Replace Mon Power Coal Plants

First Energy President and CEO Brian Tierney said in the company’s fourth quarter earnings presentation Thursday that the new plants would cost $4 billion to $6 billion.

The CEO of Mon Power parent First Energy said the company plans to replace its West Virginia coal plants with natural gas.

Mon Power’s Harrison and Fort Martin plants are scheduled to shut down between 2035 and 2040. To replace them, the company will construct 3 to 4 gigawatts of combined cycle natural gas plants, beginning in the next five years.

First Energy President and CEO Brian Tierney said in the company’s fourth quarter earnings presentation Thursday that the new plants would cost $4 billion to $6 billion.

“If we were to start building for that eventuality, I could see the spend for that coming in in years four and five of our plan today and continuing beyond the 2029 period,” he said.

Tierney said First Energy would submit the plan to the West Virginia Public Service Commission later this year.

The PSC would need to approve First Energy’s Integrated Resource Plan, its blueprint for the next several years.

West Virginia depends on coal for nearly 90% of its electricity, and state and local leaders have resisted moving away from it.

Surrounding states, especially Ohio, Pennsylvania and Virginia, have sharply pivoted to natural gas in the past 10 to 15 years.

American Electric Power, which provides electricity in southern West Virginia through its Appalachian Power subsidiary, has told state regulators it’s considering a full or partial conversion of its Amos and Mountaineer coal plants to gas.

In 2021, the PSC approved $448 million in environmental compliance upgrades to the Amos, Mountaineer and Mitchell plants to keep them in operation past 2028. No coal plant retirements are on the immediate horizon in West Virginia.

Harrison, which is in Harrison County, began operating in 1971. Fort Martin, which is in Monongalia County, began operating in 1967.

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