Justice Appoints Preservati As Director Of Energy Office

Preservati is currently vice chair of the state Public Energy Authority and has represented coal, oil and gas and utility companies in legal matters.

Gov. Jim Justice has appointed an energy attorney to lead the state’s Office of Energy.

Justice tapped Nick Preservati, of the Charleston law firm Spilman, Thomas and Battle, as its director.

Preservati is currently vice chair of the state Public Energy Authority and has represented coal, oil and gas and utility companies in legal matters.

He said his office’s mission was to promote the state’s energy resources, including fossil fuels.

“We’ve been tasked, the Office of Energy’s been tasked, by the administration to make sure and ensure that West Virginia becomes and remains not only a national but a global energy power,” he said Wednesday.

Preservati’s term on the Public Energy Authority expires next year on June 30. It wasn’t immediately clear if he would continue to serve on it after his latest appointment.

PJM Head: Energy Transition Can Be Done, But Grid Reliability Is At Risk

The PJM queue for new generation is backlogged and isn’t accepting any new entries until 2026.

The head of the nation’s largest power grid operator said the transition to cleaner energy is doable, but there are challenges.

Expert witnesses told the U.S. Senate Energy and Natural Resources Committee on Thursday that retiring coal-fired power plants too quickly could put grid reliability at risk.

Manu Asthana, president and CEO of PJM Interconnection, the grid operator that includes West Virginia and 12 other states, said there is enough wind, solar and battery storage waiting for approval to join the system.

“So we have said we see 40,000 megawatts at risk of retiring by 2030,” Asthana testified. “To replace it, we need 100,000 megawatts of intermittent generation. We have 250,000 in the queue. So it’s doable.”

The problem, he said, is getting it all built, and in time to replace coal plants that are retiring because of economic factors or government policy.

“I wouldn’t want to bet the farm that it will get done given the current trends,” he said. “We need to push to get it done. But I think we need to not burn the boats in terms of the generation we have in the meanwhile.”

The PJM queue for new generation is backlogged and isn’t accepting any new entries until 2026. Asthana said the completion rate of projects is only 5 percent to 10 percent.

He said to meet the future demand, the completion rate needs to be 50 percent or 60 percent.

The witnesses also cited supply chain issues as an obstacle, as well as delays in permitting for new transmission lines and pipelines.

West Virginia has about 12,000 megawatts of generating capacity waiting for approval from PJM. About 10,000 megawatts of that is wind, solar and storage. Only 2,000 megawatts is natural gas, and none of it is coal.

More frequent and severe storms driven by climate change, such as Winter Storm Elliott in December and Winter Storm Uri in 2021, were also cited as risks to the grid.

During Christmas Freeze, Coal Units Were Offline At 2 Plants, Data Show

A large portion of West Virginia’s coal-fired electricity generation was not available to meet the demand as temperatures plummeted ahead of Christmas Eve.

Coal’s supporters have bragged about the performance of the fossil fuel during the deep freeze over Christmas weekend. But not all coal units were available to help, even in West Virginia.

A large portion of West Virginia’s coal-fired electricity generation was not available to meet the demand as temperatures plummeted ahead of Christmas Eve.

That’s according to data from Standard & Poor’s, a global credit rating firm that monitors utilities.

A total of three units at two of the state’s largest power plants were not available as regional grid operator PJM struggled to meet a spike in electricity demand.

At Mon Power’s Harrison Power Station in Harrison County, Unit 2 went offline on Dec. 7 and was not reactivated until 7 p.m. on Dec. 24, during the height of the crisis. Unit 2 is capable of generating 684 megawatts of the plant’s total capacity of 2,052 megawatts.

At Appalachian Power’s John Amos power plant in Putnam County, only one of the facility’s three units, Unit 2, was operating at all. Unit 1 went offline in October and was still out of service in December.

Unit 3 at Amos was operating at full power but went offline at 6 a.m. on Dec. 20 and remained out of service through the winter storm.

Unit 2 at Amos has a capacity of 816 megawatts of the plant’s total capacity of 2,932 megawatts.

Together, the outages were the functional equivalent of losing one plant or the other.

In total, PJM lost 7,600 megawatts of coal capacity and 32,500 megawatts of natural gas during the peak of the crisis.

PJM had asked state officials to tell residents to cut back on their electricity use.

Winter is typically a peak time for electricity consumption, along with summer.

PJM is scheduled to release a detailed report in the coming weeks on what went wrong.

Dennis Wamsted, an energy analyst with the Institute for Energy Economics and Financial Analysis, published a report that concluded fossil fuels are not as reliable as some say.

“My point in doing this larger report, and going forward, just doing little one offs, is to point out that fossil fuels in general, are not as reliable as their proponents claim,” he said. “Because for too long, it’s been a one sided discussion where it’s like, oh, well, you can’t rely on the sun or the wind. But you can always rely on fossil fuels. And I think we’re increasingly seeing that that’s not the case, especially in the winter.”

It’s not clear why one unit was down at Harrison and two units at Amos. Power plant outages can be planned months in advance for needed maintenance. Outages can also be unscheduled. Sometimes they last only a few days, and other times weeks or longer.

Hannah Catlett, a spokeswoman for Mon Power, said the Harrison Unit 2 outage was not related to the storm and noted that it became available again at a critical time.

“Our teams worked really hard to get that unit back up and did so right as that winter storm began to move into the region,” she said. “Additionally, all of our other coal-fired units were running beyond expectations at the time.”

Phil Moye, a spokesman for Appalachian Power, said the company wouldn’t comment before the release of PJM’s report.

Jeff Shields, a spokesman for PJM, wouldn’t provide any generator-specific data but said a high rate of generators failed on Dec. 23 and 24, creating the shortfall that strained power supply.

The S&P data show no other power plant outages in the state during that time frame.

Wamsted said it appears the Harrison outage, and at least one at Amos, was unscheduled.

The fact that Harrison’s Unit 2 came back online in the middle of a holiday weekend shows how much it was needed, he said.

“Right now, if you just are an average run of the mill weekend, you’re not going to have people there at 10 p.m. on a Friday night to restart a coal plant, if it can wait till Monday,” Wamsted said. “So clearly, there was some real urgency going on there.”

Ultimately, PJM, which covers all or part of West Virginia and 12 other states, did not experience rolling blackouts like customers did in the Tennessee Valley Authority or Duke Energy territory.

Appalachian Power is an underwriter of West Virginia Public Broadcasting.

House Bill Could Restrict State Investments If It Becomes Law

The House of Delegates debated a bill Wednesday that would essentially block the state board of investments from investing in companies that refuse to support fossil fuels. House Bill 2862 would ensure that all shareholder votes, by or on behalf of the West Virginia Investment Management Board and the Board of Treasury Investments, are cast according to the monetary interests of the beneficiaries.

The House of Delegates debated a bill Wednesday that would essentially block the state board of investments from investing in companies that refuse to support fossil fuels.

House Bill 2862 would ensure that all shareholder votes, by or on behalf of the West Virginia Investment Management Board and the Board of Treasury Investments, are cast according to the monetary interests of the beneficiaries.

Democrats, including Del. Evan Hansen, D-Monongalia, argued against the bill saying its intent was to keep companies interested in ESG investments – meaning environmental, social and corporate governance considerations – from locating in West Virginia.

“These are green manufacturing jobs,” Hansen said. “We came into special session and passed that micro-grid bill that allows Precision Castparts and Berkshire Hathaway to come to the state of West Virginia. Precision Castparts is producing zero carbon parts for our aerospace industry. These are the jobs of the future. This is not some agenda to attack our coal industry. These are our future jobs.” 

Some Republicans joined Democrats in voting against the bill, including House Energy Chair Del. Bill Anderson, R-Wood, whose concern was more about how the restrictions placed on the investment boards could affect pensions.

“This debate has resulted in ESG. I quite frankly want the investment management board to have the flexibility they need to return the greatest amount of return to this state,” Anderson said. “Part of it is personal. I don’t want to have to raise taxes someday to meet these pension obligations, which we, by various court rulings, must meet … The budget implications for the future of this state, if we constrict them, I don’t think are positive. So I rise today to tell you that I intend to vote against this piece of legislation.”

Despite objections from both sides of the aisle and a nearly hour long debate, the bill passed 73 to 23 and now heads to the Senate for consideration.

State Treasurer Restricts 5 Banks Over Fossil Fuel Stance

West Virginia Treasurer Riley Moore’s office has determined that the companies are engaged in a boycott of fossil fuels.

West Virginia’s Treasurer has placed five financial institutions on a list that bars them from state banking contracts.

BlackRock, Goldman Sachs, JP Morgan Chase, Morgan Stanley and Wells Fargo are now on the state’s restricted financial institutions list.

Treasurer Riley Moore’s office has determined that the companies are engaged in a boycott of fossil fuels.

The list is the result of Senate Bill 262, which became law this year. Kentucky lawmakers enacted a similar law this year.

The goal is to punish banks that are, or appear to be, refusing to finance fossil fuel energy. But most companies have goals to reduce their carbon footprint or eliminate it entirely.

Indeed, the Treasurer’s office notes that inclusion on the list is not an indication of “unsafe or unsound operating conditions at any financial institution nor any risk to consumer deposits.”

Law Will Allow State To Boycott Banks That Shun Fossil Fuels

The state legislature passed a bill that seeks to punish banks that refuse to finance fossil fuel companies.

The state legislature passed a bill that seeks to punish banks that refuse to finance fossil fuel companies.

SB 262, which takes effect in June, will enable the state treasurer to block West Virginia from doing business with financial institutions that boycott fossil fuels.

The treasurer’s office will compile a list of banks that meet the criteria. The law authorizes the treasurer to refuse to consider such institutions for contracts with the state.

There are loopholes, though. First, the state’s Investment Management Board is exempt. The board manages billions of dollars of state taxpayer funds.

Second, it allows banks to limit their exposure to fossil fuels for reasonable business purposes. That includes managing risk, limiting liability and complying with laws and regulations.

Most financial institutions already do that. Further, many have policies that encourage investment in greener sources of energy or a commitment to achieve a net-zero carbon impact. As in other sectors, climate change has become part of the business model in banking.

It isn’t clear which financial institutions could be affected by West Virginia’s new law.

Kentucky lawmakers enacted a similar law this year.

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