MORGANTOWN – Concluding a task force investigation that began in 2022, the state Public Service Commission has ordered the state’s four electric utilities to “continue to pursue all reasonable fuel procurement methods and energy efficiency programs that may reduce energy costs for ratepayers.”
And they must provide evidence, in future PSC cases that they’re doing so.
The PSC issued the order this week, about 10 months after the task force wrapped up its work and PSC staff submitted its final report on the work.
The idea of the task force originated in March 2022, when the West Virginia Coal Association wrote to the PSC saying “traditional coal supply contracting terms offered by the state’s utilities were insufficient to allow producers to supply the coal necessary to operate the power plants to the maximum benefit of state ratepayers.”
WVCA followed up with an April 2022 letter to the PSC requesting the task force, noting that the PSC recognized the value of the coal-fired plants in its directive to the state’s four power companies – Mon Power, Potomac Edison, Appalachian Power and Wheeling Power – to operate their coal-fired plants at 69% capacity.
When the plants don’t operate, WVCA said, West Virginians pay more for power purchased off the wholesale market (as much as 450% more during peak demand), and they lose the benefit of “off system” sales to the PJM regional market.
In June 2022, the PSC authorized the task force, expanding its scope to consider ways to decrease energy costs for West Virginia utility customers.
The task force included these members: WVCA; the four power companies; the PSC’s Consumer Advocate Division; PSC staff; Longview Power; West Virginia Energy Users Group (industrial customers using high amounts of power); and West Virginians for Energy Freedom, which included West Virginia Citizen Action Group, Solar United Neighbors and Energy Efficient West Virginia; Sierra Club; and the WVU Center for Energy and Sustainable Development.
The final report was inconclusive, summarizing the issues: “Perhaps the one thing that all Task Force members agreed on is that the energy market and fuel market are both changing in ways that have not traditionally occurred. All of these issues will ultimately have an effect on West Virginia ratepayers. What is beneficial in the short-term may not be beneficial in the long-term.”
A coalition of consumer- and energy-advocacy groups expressed disappointment with the report, saying it dismissed strategies such as competitive resource procurement processes and increased investment in energy efficiency, and doubled down on the state’s overreliance on a single fuel.
In issuing the order quoted above, the PSC said this week, “The commission appreciates the efforts of task force members to work together to reduce energy costs for ratepayers.”
AEP sisters APCo and Wheeling Power offer energy efficiency programs in West Virginia. FirstEnergy subsidiaries in Maryland and Pennsylvania also do so, but not its West Virginia companies Mon Power and Potomac Edison.
Asked about this, FirstEnergy said on Friday, “We are reviewing the order and have no comment at this time.”
A spokesman for the coalition said, “CAG, SUN, and EEWV applaud this requirement that utilities pursue and consider energy efficiency programs, as they are the best and most long-lasting way for energy utility customers to reduce bills.”
Email: dbeard@dominionpost.com