The Senate met Friday to pass 15 pieces of legislation, one of which was the first of two bills the body hopes will ultimately create the West Virginia First Energy Act.
House Bill 4026 relates to expanding the requirements for integrated resource plans utility companies must file with the Public Service Commission (PSC). This bill passed in the Senate today with amendment and will need to go back to the House of Delegates for concurrence.
The companion bill, Senate Bill 420, passed the Senate Energy committee earlier this week and now is under consideration in Senate Finance.
Both bills would create the West Virginia First Energy Act, a legislative framework designed to restore electric rate stability through prioritized in-state coal-fired generation and the preservation of the state’s natural gas industry.
The legislative package proposes a target utilization rate of 69 percent for coal-fired power plants, tied to tiered cost-recovery incentives. House Bill 4026 introduces requirements for utilities to analyze Advanced Transmission Technologies (ATTs) in their integrated resource plans.
Attainment of utilization goals is tied to cost-recovery incentives in a tiered structure, with cost recovery set at a specific level, increasing as the plant approaches the 69 percent target. Utilities supplying electricity for industrial or residential use must maintain a 30-day supply of base fuel under the legislation.
A previous PSC order set an expectation that coal-fired power plants need to achieve at least a 69 percent capacity factor in order for in-state electric companies to self-generate power and reduce reliance on purchased power.
Senator Brian Helton (R-Fayette, 09), a major supporter of the initiative, believes incentivizing coal-fired power plants to operate at a 69 percent capacity rate would lower electric rates and result in more coal miners being employed.
“We want them to be utilized according to the PSC standard of 69%. And if we’ll do that, and we’ll get these utilities back in line with that 69%, we’re going to see an economic uptick like we’ve never seen before,” Helton said.
The Senate is adjourned until Monday, March 2, at 11 a.m.
Morning Meetings for March 2:
Government Organization at 10 a.m. in 451M
