Members of the West Virginia Public Service Commission heard public comments on proposed rules governing electric generating capacity.
People spoke for a little more than an hour, with some in favor of policies to push utilities to run coal plants more and others expressing concern that would result in higher electricity prices for consumers.
“I am not asking the commission to accept a political position or decide any proceeding based upon opposition to certain projects. I am asking for something much more basic,” said one of the commenters, Krista Adkins.
“I am asking that the commission’s final rules and findings be based upon identifiable evidence, disclosed assumptions, and demonstrated need, and a record that permits the public and, if necessary, reviewing courts to understand how the commission reached its conclusions.”
Last year, the Legislature passed a sweeping policy called the Power Generation and Consumption Act with most of the focus on data centers and their power sources. The Public Service Commission’s role — and the public comment — addressed different matters, though.
The bill required the Public Service Commission to evaluate capacity auctions conducted by PJM Interconnection, and review each generating unit’s current economic dispatch to ensure the generating units could meet future needs. PJM is this area’s regional energy grid, which oversees the allocation of electric-power in a 13-state area.
The policy passed by the Legislature also required utilities to maintain their generating units and fuel inventories to allow them to achieve at least a 69 percent capacity factor.
The Public Service Commission was assigned to propose rules for legislative approval to reflect its new duties and responsibilities under the law.
In July, the commission initiated a general investigation to receive comments and recommendations regarding the proposed rules and established a comment period, accepting written comments and recommendations until August 10.
In addition to the written comment period, the commission took public comments today’s hearing in Charleston.
“West Virginians deserve reliable electricity and electric bills they can afford. The PSC must protect customers instead of exploitative utility companies from unnecessary power generation costs and reject rules that encourage plants to operate at a loss,” said Lani Wean, a Charleston resident associated with the organization West Virginians for Energy Freedom.
Monongalia Power’s director of regulated commodity sourcing, Randy Feucht, expressed concerns about how the rules are written and said some of the proposed reporting requirements amounts to redundancy of requirements already in place.
“There was a lot of mention this morning about affordability,” he said. “There was a lot of mention this morning about affordability, and there is concern with the pace and the granularity at which the reporting would be required, and whether or not that would impact affordability with additional headcount required by the utilities to comply.”
Speakers included several people associated with the United Mine Workers union.
“I ask the commission to carefully consider the importance of maintaining existing coal-fired power plants as reliable sources of electric generation and as an important source of employment to West Virginia workers,” said commenter Brian Lacy.
Chad Francis, also with the UMWA, told commissioners, spoke in favor of rules mandating that utilities maintain their coal fleets in a manner that will allow for at least 69% generation capacity.
“West Virginia is a state blessed with abundant natural resources and established reliable coal-fired power plants and electric and electrical infrastructure that has been paid for by ratepayers. These resources must be prioritized for the commission’s stated purpose to succeed,” Francis said.
Rebecca McPhail, representing the Gas and Oil Association of West Virginia, expressed concern about how the proposed rules could affect the natural gas industry.
“GoWV is not asking the commission to pick natural gas over another fuel, and we’re not asking to trade one energy job for another. We we believe there’s a seat at the table for everybody,” McPhail told commissioners.
“Instead, we just don’t think that regulation should put its thumb on the scale of the market, those choices should be judged by reliability and cost to consumers while leaving room and providing an open door for new investment in the state.”
McPhail added, “A rule that treats plant readiness to run as an expectation that it must run, or presumes that self-scheduling is best, even if it raises costs for consumers, would go farther than the legislature intended with the bill.”