West Virginia Utilities Defend Aging Coal Fleet Against Grid Constraints
State officials and utilities are lobbying to preserve coal's base-load role in the PJM grid, citing transmission congestion and high operating costs that threaten plant longevity.
West Virginia lawmakers and regulators are actively working to secure the continued operation of the state’s aging coal-fired power plants within the PJM Interconnection. The Joint Committee on Energy and Public Works recently reviewed testimony from the Office of Energy, the Public Service Commission, and local utility providers regarding the viability of coal as a base-load resource. Officials argue that current grid management practices are detrimental to equipment integrity and regional energy stability.
Nicholas Preservati, director of the Office of Energy, stated that the state is intervening with the Federal Energy Regulatory Commission to reform PJM governance. He specifically criticized emergency rules that force local plants to throttle output due to west-to-east transmission congestion. Preservati noted that rapid cycling of these units shortens their operational lifespan, a concern shared by the 13-state Governors' Collaborative which is pushing for structural changes to the regional grid.
Operational Costs Challenge Coal Viability
PJM dispatches electricity based on the least expensive fuel sources, currently favoring natural gas and nuclear over coal. A 2025 analysis by Lazard indicates that coal-fired power costs consumers $122 per megawatt hour, compared to $78 for natural gas. This cost disparity means coal is often dispatched only when necessary, leading to the inefficient cycling that state officials argue accelerates wear and tear on infrastructure that is already decades old.
Utilities Invest in Plant Modernization
FirstEnergy has committed $500 million over the past five years to upgrade its Fort Martin and Harrison plants. Meanwhile, Appalachian Power has secured $87 million in federal grants and $116 million in low-interest loans for modernization projects, including at the Mitchell Power Plant. David Ellis, director of quality assurance at the Public Service Commission, emphasized that maintaining these 50-year-old assets is critical for serving local customers, regardless of their ability to sell power into the broader PJM market.
The state is collaborating with the National Energy Technology Laboratory in Morgantown to use computational research for determining necessary upgrades. This partnership aims to analyze every process affecting the coal plants to extend their operational life. These efforts align with the state’s broader strategy to ensure energy reliability amidst rising demand from data centers and industrial growth.
New Dispatch Rules Target Efficiency
The Public Service Commission is implementing consumer economic dispatch rules mandated by House Bill 2014. These regulations require utilities to maintain plants to run at their lowest possible cost, targeting a 69% capacity factor when economically feasible. The proposed rules are currently open for public comment, with a hearing scheduled for September 28 at the PSC headquarters in Charleston.
Ellis explained that consumer economic dispatch involves running each plant based on its specific engineering limitations and transmission constraints. The commission expects to release amendments or changes to the proposed rules within the next one to two months following the review of public comments. This regulatory framework aims to balance cost efficiency with the physical necessity of maintaining aging infrastructure for local grid stability.
