MORGANTOWN – West Virginia University is in the planning stages to construct two new steam generation plants in Morgantown.
Most of the buildings across WVU’s footprint are heated and cooled by steam distributed through some 2.25 miles of underground steam tunnels originating at the power plant located near the Seneca Center, between Beechurst Avenue and the Monongahela River.
The Morgantown Energy Associates plant deactivated its coal-fired generators in 2020, but continued providing steam to WVU utilizing natural gas.
Vicinity purchased Morgantown Energy Associates in July of that year.
Shauna Johnson, WVU’s executive director of strategic communications and marketing, said the university’s contract with Vicinity expires in summer 2029.
And WVU appears to be making new arrangements.
During its Feb. 20 meeting, the WVU Board of Governors authorized a pre-development agreement with Hope Gas for a downtown campus steam facility.
Meeting documents explain, “WVU and Hope Gas continue to work collaboratively on the design and development of a new steam plant facility for the Downtown Campus. The parties are engaged in a coordinated planning effort to finalize the project scope and confirm the steam loads that will be supported by the new facility.”
According to Johnson, the plant will be located near Reynolds Hall, though the exact location will be determined as part of the planning process.
The pre-development agreement allows Hope Gas to complete detailed engineering, design refinement, permitting preparation, and procurement planning before construction authorization. It also establishes cost parameters and allows the project to move forward while preserving the university’s ability to make a final build decision.
If WVU proceeds with Hope Gas for steam service, all design, permitting and construction costs will be incorporated into the proposed steam service rate, according to information included in the BOG meeting packet.
Should WVU elect to terminate the project and not proceed with Hope Gas, the university’s maximum financial exposure under the pre-development agreement is just over $2.6 million.
During Friday’s BOG meeting, the body approved bond authorizations for three projects, one of which paves the way for the construction of new steam pipe infrastructure.
According to information presented by Associate Vice President for Finance & Treasury David Kosslow, “This project is part of the broader steam plant initiative. It will provide piping from a steam plant to be built on the Health Sciences Campus to the Evansdale Campus …”
“We are currently in the planning phase for the new plant. As we continue with that planning and design, we’ll solidify costs and location,” Johnson said. “The plant will provide steam to the Health Sciences and Evansdale areas of campus. To facilitate the Evansdale distribution, the current line will be replaced …”
Price estimates for the pipe project range from $22 million to $37 million, though Kosslow said the cost is likely in the $30 million range. The BOG authorized issuance of up to $40 million in revenue bonds with a 4.54% interest rate and 30-year term.
