Appalachian Power and Mon Power have raised significant concerns about one of Gov. Patrick Morrisey’s signature pieces of legislation.
The state’s primary electric utilities say provisions in House Bill 2014 could raise costs for West Virginia customers.
The bill, which would expand the number of microgrids to power data centers in the state, also includes provisions affecting the operation of Mon Power and Appalachian Power’s coal plants.
It would increase the stockpile of coal at each plant from 30 days to 45, and it would require the plants to be ready to operate at 69% capacity when most operate closer to 40%.
It would also throw up barriers for the companies to replace their coal fleet with natural gas, something Mon Power said it intends to pursue in the next several years.
An Appalachian Power spokeswoman said those provisions would lead to rate increases in the millions of dollars.
In a presentation to the state Public Energy Authority last year, Appalachian Power said operating its three plants at 69% over the past 18 months would have cost customers an additional $240 million.
A Mon Power spokesman said the provisions could “put upward pressure on customer rates.”
He also said West Virginia’s current regulatory structure could accommodate large-load customers such as data centers, and Mon Power and Potomac Edison could serve them.
Drew Galang, a Morrisey spokesman, said “Governor Morrisey has made clear that this bill ensures data centers are responsible for paying for microgrid usage and creates a dedicated fund to offset infrastructure costs for electric utilities which will help to keep energy rates down for consumers.”
