Microgrid Bill Advances In Senate, But Not Without Debate

Gov. Patrick Morrisey said Tuesday that a hydrogen-fueled microgrid would be built in Mason County to power a data center.

To allow that, state lawmakers will need to approve Senate Bill 552, which enables a microgrid to be powered by any source of electricity, not just renewables.

One microgrid is currently under construction in Jackson County by Berkshire Hathaway Energy to power a titanium factory with solar.

The data center microgrid, called the Mountaineer Gigasystem Site, will be powered by hydrogen generated from coal, gas and biomass from timber.

The Senate Economic Development Committee approved SB 552 on Tuesday, but not without debate.

Randall Short, director of regulatory services for American Electric Power, told the committee that the arrangement had the potential to increase Appalachian Power bills – a flashpoint for many residents frustrated with the rising cost of electricity.

Though it would generate its own power, the microgrid would also be connected to the grid.

“If they self-generate but need to take backup service from us, it actually could increase bills for our customers,” Short said.

Sen. Rupie Phillips, R-Logan, made his opposition clear.

“Mr. Chairman, I just don’t think it’s right that we’re going to bring industries in here and raise mamaw’s bill,” Phillips said.

Sen. Charles Clements, R-Wetzel, said he was persuaded by the need for economic development.

“And I think we as a state of West Virginia need to do everything that we can do to bring jobs into our state,” Clements said.

The committee approved the bill and referred it to the full Senate.

Kentucky Power Wants To Keep Its Share Of Mitchell Coal Plant

Earlier this week, Kentucky Power went back to Kentucky regulators and asked them to reopen the case.

Kentucky Power was supposed to give up its half of the Mitchell Plant in December 2028. 

At least that’s how the matter concluded in 2021, when the Kentucky Public Service Commission decided continued investment in the coal-burning plant would not be in the best interest of Kentucky electricity customers.

Earlier this week, though, Kentucky Power went back to Kentucky regulators and asked them to reopen the case.

After Kentucky’s PSC issued its decision nearly four years ago, West Virginia’s PSC decided that Appalachian Power and Wheeling Power customers would pick up the cost of keeping Mitchell in operation past 2028.

That involved upgrades to its wastewater treatment system, at a cost of $148 million.

Now, Kentucky Power seeks approval to pay for its share of the wastewater upgrade at Mitchell. 

“We continue to believe that that plant is valuable and will continue to serve our customers,” Bill Ferhman, President and CEO of Kentucky Power parent American Electric Power, told Kentucky lawmakers earlier this month.

In 2021, Kentucky’s Republican then-Attorney General Daniel Cameron encouraged state regulators to deny the investment in Mitchell. A better option for Kentucky Power’s customers, Cameron said then, would be to close it.

Byron Gary, program attorney for the Kentucky Resources Council, an environmental and public health advocacy group, says that’s still the best outcome.

“I’m not sure what Kentucky Power Company thinks may have changed in the interim,” Gary said.

Regardless, West Virginia paid for the Mitchell upgrades Kentucky didn’t.

In a statement, Charlotte Lane, chair of the West Virginia PSC, said the commission would monitor the development and take appropriate action.  

According to data from Standard & Poor’s, Mitchell had a capacity factor of less than 30% last year, meaning it generated electricity the least often of the three AEP plants in West Virginia. Amos and Mountaineer are the others.

The issue created some friction in the 2023 governor’s race in Kentucky. 

Cameron took criticism from a rival, Kelly Craft, a former ambassador who’s married to coal executive Joe Craft, for his stance on Mitchell.

Kelly Craft accused Cameron of turning his back on the region’s coal industry.

According to filings to the West Virginia PSC, the Mitchell plant was a customer of the Crafts’ coal company, Alliance Resource Partners.

Cameron won the Republican primary but lost to Gov. Andy Beshear, a Democrat.

This story was distributed by the Appalachia + Mid-South Newsroom, a collaboration between West Virginia Public Broadcasting, WPLN and WUOT in Tennessee, LPM, WEKU, WKMS and WKYU in Kentucky and NPR.

Sierra Club, WVPSC Work Toward Settlement Of Federal Lawsuit

The Sierra Club’s complaint argued that a PSC 2021 directive for Appalachian Power to operate its three West Virginia coal plants at a 69% capacity factor had increased the cost of electricity.

This week, U.S. District Judge Thomas Johnston hit pause on a case the Sierra Club filed last year against the West Virginia Public Service Commission.

The Sierra Club’s complaint argued that a PSC 2021 directive for Appalachian Power to operate its three West Virginia coal plants at a 69% capacity factor had increased the cost of electricity.

The capacity factor of all coal-burning units in the 13-state PJM territory, which includes West Virginia, was 34% in 2023, according to the U.S. Energy Information Administration.

Still, the cost of electricity has risen. Appalachian Power is currently seeking a rate increase.

The PSC responded that the Sierra Club had no standing to sue the commission over the directive, even though its West Virginia members are customers of Appalachian Power.

Johnston gave the parties 30 days to reach a settlement.

No New Coal To Make Electricity, Utilities Tell State Lawmakers

American Electric Power, FirstEnergy and Dominion Power told members of the legislature that they’d maintain their coal assets in West Virginia. In the future, though, they said they would not be building new coal plants.

Coal generates nearly 90 percent of West Virginia’s electricity, making it more dependent on that fuel than any other state.

American Electric Power, FirstEnergy and Dominion Energy told members of the legislature that they’d maintain their coal assets in West Virginia. In the future, though, they said they would not be building new coal plants.

Del. Henry Dillon, R-Wayne, pushed Bob Bradish, AEP’s senior vice president of regulated infrastructure investment planning, to explain.

“So you referred to building out new generation capacity to meet demand during your presentation, I heard mention of renewables, wind, solar. I heard natural gas mentioned. Heard nuclear. I heard coal mentioned, but it was exclusively in a legacy sense of maintaining existing coal fired capacity. But I didn’t hear any mention of any new coal fired generation facilities,” Dillon said. “Why is AEP not prioritizing investment in new coal fired generation?”

Bradish responded that in spite of a friendlier regulatory environment for coal under President Donald Trump, it still carries too much risk for the company.

“So the plants take, you know, years to build, and the question that you have to wrestle with right now the law of the land, 111D (of the Clean Air Act), which basically tells you retire it or convert it to gas at this point,” Bradish said. “So I think there’s a lot of risk around someone who wants to go after and build something like that in this environment. So we have not pursued new coal at this point.”

Numerous states, including West Virginia, have sued to block U.S. Environmental Protection Agency rules limiting carbon dioxide emissions from power plants. The Trump administration has pledged to unwind the Biden-era rules.

Still, John Scalzo, vice president of regulatory and finance for AEP subsidiary Appalachian Power, said gas was the safer bet.

“In the future, we’ll be looking at adding resources,” Scalzo said. “But when you’re making a 40 year investment, right now, the safest investment would be, we’ll be looking at natural gas.”

Nationwide, natural gas has become the dominant fuel for generating electricity, displacing coal.

Solar Panels Go To School, Help Cut Rising Electric Bills

You can’t see it from the ground, but nearly 400 solar panels line the roof of the eight-year-old school, built on the site of an old high school.

There’s coal transportation on three sides of Ceredo-Kenova Elementary School. That includes rail lines on all three sides. Parallel to one of them, barges carry coal on the Ohio River.

Coal dominates electricity production in West Virginia, as it has for decades. But this school, and the surrounding Wayne County School District, is trying on a different kind of power – solar.

You can’t see it from the ground, but nearly 400 solar panels line the roof of the eight-year-old school, built on the site of an old high school.

Superintendent Todd Alexander says the solar panels could save the district a substantial amount of money on its annual electric bill. Electricity rates have been rising in Appalachian Power’s West Virginia service territory. While much attention has focused on impacts to residential customers, schools pay more, too.

“I don’t have the numbers on Ceredo Elementary School specifically, but if you look district wide, those savings are estimated to be about $200,000 a year that we would save in utility cost,” he said. “Now that was before any rate increases. With some of the proposed rate increases that are that are on the table right now, that number could go up significantly.”

But the school still receives power from the grid. That’s because the district entered a power purchase agreement with Appalachian Power, an arrangement made possible by state lawmakers in 2020.

A local company, Solar Holler, installed the panels on the school’s roof last year. The power they generate goes to the grid, and the school receives a credit for that power. Alexander says there was very little up-front cost, really just the fees for some attorneys to review the agreement.

“We’re still paying for the solar that we’ve collected,” he said. “It’s just cheaper than what we would pay for what we would get off the grid.”

In spite of coal’s lasting footprint in the community, Alexander says there was very little concern about the perception that the project would displace coal jobs. In fact, he says, some of the parents of the students at the school work installing solar. 

“And I think it’s because Solar Holler operates in the West End Huntington, which is in Wayne County,” he said. “So they are a local employer.”

The school’s solar system was activated in early January. Then, several inches of snow, and some ice, fell across the region. Temperatures stayed cold. The snow covered the solar panels.

Thomas Ramey, commercial and nonprofit solar evaluator at Solar Holler, says winter weather is factored into how much power the panels can produce. Though winters have generally been mild for several years, he says the calculations have proved to be pretty accurate.

Alexander notes that the panels will generate electricity even when the school is out on break.

“We’re going to be collecting power year round, including it in the summer,” he said. “All of that is banked.” 

Principal Deidre Farley says the installation occurred during the school year, with hundreds of students in the building. It was not as disruptive as anyone expected.

“That was what the teachers were concerned about, was the noise level,” she said. “And there was just maybe one day that I can remember that we heard some noise, but other than that, we didn’t even hear them.”

Farley says solar power even became part of the curriculum.

“Some of the students knew what was going on, and they had questions, and we would answer,” she said. “Some of the teachers did lessons on solar power and that type of thing.”

Alexander says older students in the district are learning about solar with an eye toward a potential career.

“We have a district internship program that they participate in,” he said. “We have high high school students from Wayne High School and Spring Valley High School and Tulsa High School that have access to an internship program through Solar Holler, where they’re working for them.”

With minimal up-front cost, working with a local company and the opportunity for students to learn trade skills that could build a career, Alexander says he had every reason to say yes.

“So with those factors, it was a no brainer, just to go ahead and move forward with it,” he said.  

Solar Holler is an underwriter of West Virginia Public Broadcasting.

This story was distributed by the Appalachia + Mid-South Newsroom, a collaboration between West Virginia Public Broadcasting, WPLN and WUOT in Tennessee, LPM, WEKU, WKMS and WKYU in Kentucky and NPR.

Cold Weather Means More Requests For Help With Electric Bills

Electricity prices have increased in West Virginia faster than the rate of inflation, and many households struggle to keep up.

With below-freezing temperatures lingering statewide for much of the month, people are seeking help to pay to heat their homes. 

Margaret O’Neal, president of the United Way of Central West Virginia, said her organization received more than 12,000 requests for assistance with electricity costs last year.

She expects a spike because of recent winter weather.

“So as people start to get their power bills for January and February,” she said, “we’ll see a huge uptick in people calling for assistance, because they’re going to get exorbitant power bills over the last month.”

Appalachian Power has a case before the West Virginia Public Service Commission that seeks a rate increase.

Those who need assistance can go to WV211.org or call 211.

Exit mobile version