Every West Virginian depends on reliable electricity. We need it to heat and cool our homes, keep businesses operating and support the industries that provide jobs across our state.
We also need electricity people can afford.
That balance should guide the Public Service Commission as it finalizes the rule required by House Bill 2014. The law was intended to strengthen West Virginia’s power supply while protecting the customers responsible for paying the cost. The final rule should reflect both responsibilities.
One provision deserves particular attention. The proposed rule establishes a 69 percent performance standard for certain power plants. The Commission should make clear that this standard measures whether a plant is maintained, capable and available when needed. It should not be interpreted as an order to operate that plant at a fixed level when dependable electricity can be obtained elsewhere for less.
The difference may sound technical, but its effect on monthly electric bills is easy to understand.
West Virginia utilities participate in PJM, the regional organization that coordinates the electric grid across 13 states and the District of Columbia. PJM’s market allows generators to compete to supply electricity, helping utilities obtain power from lower-cost sources while maintaining grid reliability.
If electricity is available through that market at a lower price than the cost of producing it at a utility-owned plant, customers should benefit from the savings. Requiring the utility to run its own plant instead could mean paying more for fuel, maintenance and operations without receiving greater reliability in return.
The customer ultimately pays those costs.
Households can’t simply choose another electric company if their bills become unaffordable. Small businesses cannot always pass rising costs along to customers. Manufacturers facing higher energy expenses may reconsider investments, expansion plans and jobs. Decisions made in a regulatory proceeding can reach kitchen tables, storefronts and factory floors throughout West Virginia.
This is not an argument against coal or any other source of electricity. Coal has long supported West Virginia’s economy and remains an important part of the state’s power system. Natural gas can also provide dependable generation while creating new markets for a resource produced here at home. The state benefits most when every capable energy source has a fair opportunity to compete on reliability, availability and price.
The Commission can preserve that balance with clear language. Utilities should maintain sufficient generating capacity and keep their plants prepared to respond when the grid needs them. At the same time, they should retain the flexibility to purchase less expensive power when doing so is reliable and reduces the overall cost to customers.
That approach is consistent with the purpose of House Bill 2014. The Legislature sought a stronger and more dependable electric system, not a requirement that customers pay unnecessary costs to produce electricity that could be purchased more economically.
Before approving the final rule, the Commission should prevent any interpretation that turns an availability standard into a mandatory operating requirement. It should also require utilities to evaluate the full cost to customers before choosing between producing electricity and purchasing it from the market.
West Virginians should not have to choose between dependable electricity and manageable power bills. The Commission has an opportunity to protect both, and the final rule should leave no doubt that ratepayers come first.
Sen. Tom Takubo, R-Kanawha, represents West Virginia’s 17th Senatorial District.
