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Committee advances "West Virginia First Energy Act," adopts 69% coal-utilization goal in amended HB 4026
Summary
The Senate Energy Industry and Mining Committee adopted a strike-and-insert amendment to House Bill 4026 to create the "West Virginia First Energy Act," advancing the bill to the full Senate; debate centered on a 69% coal-fired utilization goal, PSC implementation burdens, and potential costs to ratepayers.
The Senate Energy Industry and Mining Committee on a voice vote adopted a strike-and-insert amendment to an engrossed committee substitute for House Bill 4026 that creates the West Virginia First Energy Act and reported the bill to the full Senate with a recommendation that it pass as amended.
Counsel told the panel the amendment would require utilities filing integrated resource plans (IRPs) to include a West Virginia–specific analysis of advanced transmission technologies, specify estimated costs allocated to in-state retail customers, and set a goal for coal-fired plants to maintain 69% operational utilization tied to incentives for achieving that level. Utilities would also be required to maintain a 30-day supply of base fuel and to report relevant data to the Public Service Commission (PSC) and the Public Energy Authority (PEA). Exemptions were included for municipal power systems, nonprofit entities, and rural cooperatives.
Charlotte Lane, chair of the West Virginia Public Service Commission, told the committee the PSC can act to keep rates reasonable within statutory constraints but warned that mandating joint planning, rulemaking and extensive reporting with the PEA could be “so cumbersome” that it may not be workable. Lane said the 69% figure stems from a prior PSC case analysis and that the commission can run retrospective scenarios to estimate whether operating at that level would have raised or lowered costs for ratepayers, but she did not offer a definitive dollar estimate.
Senator from Fayette, who presented the subcommittee report, argued the measure would restore in-state coal generation, preserve jobs and investment, and reduce reliance on PJM market purchases. He said increasing utilization to 69% could produce “8 more million tons of coal,” roughly “3,500 jobs,” and about “$225,000,000” in local economic activity. Lane and other members stressed that the economic outcome depends on the relative operating cost of coal plants versus market purchases and that whether pursuing the 69% target would raise or lower customer bills requires analysis.
Counsel and legislators also clarified that the bill does not impose enhanced operational restrictions on natural-gas–fired resources used as load-following units; the utilization goal in the amendment is focused on coal-fired capacity and is tied to tiered incentives rather than an absolute mandate. Counsel said the PSC, in coordination with the PEA, would design the incentive tiers and cost-recovery mechanisms.
The committee adopted the strike-and-insert amendment by voice vote and later voted to report the amended bill to the full Senate with a recommendation that it pass. A title amendment reflecting the added sections was also adopted. No roll-call tallies or named vote records were provided in the committee transcript; votes were recorded by voice as "ayes." The committee set no immediate effective dates in the session record; implementation tasks were assigned conceptually to the PSC and PEA.
The bill will next be considered by the full Senate, where lawmakers may choose among the amended House language or the companion Senate substitute previously discussed by counsel.
