A new bill aimed at attracting data centers to West Virginia could also impose changes on coal-fired power plants, potentially raising electricity rates for consumers.
House Bill 2014, introduced on Tuesday with immediate support from Gov. Patrick Morrisey, seeks to establish microgrids to support data centers—an industry that has primarily thrived in other parts of the country. However, the bill includes several provisions impacting the operation of coal plants across the state.
One of the key mandates requires coal-fired power plants to operate at a minimum of 69% capacity. Currently, these facilities average around 40% capacity in the PJM regional grid, which West Virginia is a part of.
Additionally, the bill calls for an increase in coal stockpiles at power plants, raising the required supply from 30 days to 45 days.
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Energy providers, including Appalachian Power, have expressed concerns about the financial impact of these changes. The company reported that running its plants at a 69% capacity factor over the past 18 months would have cost an additional $240 million, making coal less competitive compared to natural gas.
In a presentation to the state Public Energy Authority, Appalachian Power also noted that its three coal plants collectively lost $87 million between 2023 and 2024 due to excessive coal stockpiles, which forced them to burn coal even when it was not cost-effective.
Emmett Pepper, policy director for Energy Efficient West Virginia, criticized the bill’s approach, arguing that it places an unfair financial burden on ratepayers while benefiting coal-fired power generation.
Another potential consequence of the legislation is its impact on Mon Power’s plans to transition two existing coal plants to combined-cycle natural gas facilities in the coming years. The bill could make it more difficult for the company to move forward with those plans.
West Virginia Public Broadcasting has reached out to Appalachian Power and Mon Power for their response to the proposed legislation .