Utilities warn of resource‑adequacy pressure, urge regional transmission upgrades and outline coal‑plant limits

Representatives of FirstEnergy and American Electric Power told the West Virginia Public Energy Authority that the state’s position as a net energy exporter does not remove pressure from regional resource‑adequacy challenges and that a mix of new generation, plant upgrades and large transmission projects will be needed if many large loads materialize.

FirstEnergy’s Jim Myers described the state as “a net exporter in the state by another 6 gigawatts,” and said PJM’s development queue contains a large amount of dispatchable generation, largely combined‑cycle gas. He told the authority that capacity auctions are sending price signals about where new generation is needed but stressed that the crucial question is whether projects in the queue will actually be built.

Why it matters

Utilities said multiple, clustered large loads can create regional reliability and market issues: protection settings, voltage control, stability and congestion can all be affected when thousands of megawatts are added in a concentrated area. AEP’s Bradish warned that large loads “are bigger than most of our generating units,” meaning the network and operational standards must be examined beyond local interconnection studies.

Coal plants, end of life issues and federal funds

Myers emphasized FirstEnergy’s continued interest in operating coal plants but cautioned that environmental regulations and aging equipment — particularly maintenance and replacement of boiler tubing and other long‑lived components — limit how long plants can be extended economically. He said retrofits to meet regulatory requirements can reach costs that exceed alternatives. Board members and FirstEnergy staff discussed federal funding opportunities under the Inflation Reduction Act to upgrade coal units; Myers and other presenters said funds for plant upgrades exist in federal law but that prior policy choices affected how those funds were used.

Transmission portfolios to relieve congestion

Bradish described a multi‑utility portfolio of transmission upgrades proposed in PJM’s most recent competitive window to address reliability violations and congestion in the mid‑Atlantic region. He identified major elements presented to PJM: new or upgraded 765 kV corridors linking Amos → Pointe Rocks and Joshua Falls → (Morrisville/Neets area), and a 500 kV project referred to in the presentation as “Crack And Loop.” Bradish said those projects “will provide value to West Virginia in particular” by relieving hundreds of violations, increasing transfer capability eastward, and widening market access for West Virginia generators.

Markets, capacity constructs and AEP’s planning posture

Bradish explained that AEP largely uses a fixed resource requirement (FRR) construct rather than PJM’s Reliability Pricing Model for parts of its footprint. He said AEP files annual FRR plans and that the company will file a full integrated resource plan in West Virginia at the end of the year, providing a more granular long‑term view of capacity needs and options including new builds, repowering, short‑term purchases and transmission investment.

Operational risks and protection coordination

Both presenters pointed to operational incidents and NERC analyses that illustrate risks from clustered, inverter‑based or high‑density loads. Bradish described a recent event in which protection logic caused data‑center protections to trip after repeated transmission reclosing attempts; he explained that when many megawatts trip simultaneously the grid faces large, sudden shocks that require operational planning and coordinated protection settings across utilities.

Quotes from the meeting

“Myers (FirstEnergy): ‘we are a net exporter in the state by another 6 gigawatts.’

Bradish (AEP): ‘these things are bigger than most of our generating units.’

Myers (on coal plant life and costs): ‘the cost of that investment is starting to exceed the cost of a new plant.’

Policy implications and next steps

Presenters urged the authority and state officials to support early developer engagement, help coordinate siting and permitting where state authority applies, and consider targeted assistance that helps preserve generation that benefits customers’ reliability and rates. Both utilities said transmission investment that increases transfer capability will reduce congestion costs and create more market opportunity for West Virginia generation.

Ending

Utilities presented West Virginia as well positioned—low retail rates and existing thermal resources—but cautioned that marketplace signals, federal and state policy, regulatory filings (IRPs) and project‑level decisions will determine whether the state’s existing fleet is extended, replaced or supplemented by new generation and whether large new loads can be accommodated without multi‑year transmission builds.