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Senate approves certified business expansion program, adopts amendment to shield most ratepayers from new project costs
Summary
The West Virginia Senate on March 5 passed the committee substitute for Senate Bill 552, creating a Certified Business Expansion Development program and adopting an amendment intended to prevent regulated utility customers outside designated districts from footing costs for non‑utility on‑site power, by a 32–2 vote.
CHARLESTON, W.Va. — The West Virginia Senate on March 5 passed the committee substitute for Senate Bill 552 on third reading, 32–2, approving a program to designate High Impact Business Development Districts and to permit on-site electricity generation for qualifying projects. The chamber also adopted a floor amendment intended to prevent regulated utility customers outside such a district from bearing construction, operational or capacity costs for non-utility-owned on-site generation.
Senator from Logan offered the amendment, which floor discussion described this way: “Regulated utility customers shall not bear any construction, operational, or capacity related costs associated with a non utility owned or operated electricity generation co‑located within the High Impact Business Development District. Any cost of this nature are to be borne by the customers situated within the High Impact Business Development District that is to be co located with on‑site electricity generation.” The Senate adopted that amendment and later approved the bill on third reading.
Floor debate included two primary strains: supporters said the measure will attract major economic projects and infrastructure investment; critics warned of possible rate impacts for low‑income ratepayers and urged protections. “I’m asking you to think long and hard. Help. We are West Virginians. We help our neighbors,” said Senator from Logan during remarks explaining the amendment and concern for constituents. Senator Flamingo, representing a low‑income county, said, “I cannot vote for something that's going to bury my people deeper than they already are.”
A senator speaking for the bill cited economic-impact figures for a hypothetical 1,000‑megawatt data‑center-scale project presented on the floor—$3.8 billion in annual spending, $380 million in annual wages and $225 million in annual tax revenue for the affected area—but characterized those as project‑area estimates rather than statewide fiscal effects.
Procedurally, the sponsor moved to dispense with the constitutional rule requiring three separate readings and the Senate voted 34–0 to allow a third reading that day; the final third‑reading vote was 32–2. A title amendment was adopted before floor action concluded and the clerk communicated the Senate’s action to the House.
The committee substitute also removed a requirement that a district be on state land and eliminated a renewable‑source limitation so on‑site generation in a district may use multiple fuel sources, according to floor remarks. The Logan amendment was presented as a rate‑protection measure to ensure that costs associated with co‑located on‑site generation would be allocated to the district’s customers rather than spread to regulated utility customers statewide.
The bill proceeds to the House for consideration.
