West Virginia Senate approves energy reliability measure and a package of bills; close vote on electricity rates bill

CHARLESTON, W.Va. — The West Virginia Senate on March 26 passed a bill that requires the Public Service Commission to consider bulk power system reliability when approving utility rate increases and approved a package of largely noncontroversial bills affecting rulemaking, education, emergency response and other technical changes.

The most contested floor debate concerned the engrossed committee substitute for Senate Bill 505, the “Ensuring Reliable and Affordable Electricity Act,” which passed 22 yeas to 11 nays with one absent. A member of the public identified as an employee of an electric utility rose during floor debate to ask for a ruling on Senate rule 43, saying, "I'm asking for a ruling on senate rule 43, mister president." The bill’s floor sponsor summarized the measure and urged passage, saying, "That is the bill, mister president, I urge passage." The legislation directs the Public Service Commission to include bulk power system reliability as a factor when determining whether rates requested by an electric utility are just and reasonable, and to state in rate orders the dollar amount of any approved increase and any costs denied for rate recovery.

Why it matters: proponents said the bill prevents customers from paying both for power purchased off the grid and for local generation assets that are not meeting reliability needs. During debate a senator asked whether the bill would require plants to burn more coal; the sponsor replied that it would not dictate fuel choice but would tie allowed returns to the reliability of the…