MORGANTOWN – Letters and testimony supporting the Mon Power/Potomac Edison plan to build a combined cycle gas plant at their Fort Martin site were received by the Public Service Commission this week.
West Virginia Chamber of Commerce President Steven Roberts offered positive testimony for the project – the Maidsville Energy Center – in rebuttal to opposition testimony.
Some of those opposing the project have said the FirstEnergy sisters have overestimated future load growth driven by data centers, and the excess energy could saddle ratepayers with needless costs.
Roberts told the PSC that “the Chamber believes their analysis understates the economic and reliability risks associated with failing to prepare for future demand growth. From the perspective of West Virginia employers, the greater risk is not building generation capacity that may be needed – it is finding ourselves unable to meet demand when economic opportunities arise.”
Many advanced manufacturing, technology, logistics, and data center projects require substantial electric service commitments, he said. “These companies make long-term investment decisions based on confidence that sufficient energy resources will be available for decades to come. States that cannot demonstrate adequate generation capacity are increasingly at a competitive disadvantage.”
Roberts also said that opponents underestimate PJM Interconnection’s reliability challenges. The combination of load growth, delays in bringing new generation online and plant retirements pose challenges to the grid. “Recent PJM capacity auctions have produced unprecedented price increases, reflecting growing concerns about future resource adequacy across the region.”
He said, “There is broad recognition that maintaining reliability will require significant investment in new generation resources. West Virginia should be positioned to respond to those challenges rather than become increasingly dependent on constrained regional markets.”
And the companies aren’t proposing just one gas plant. The project includes three solar sites, not counting their existing resources. “From the Chamber’s perspective, this represents a balanced, all-of-the-above approach that recognizes both the importance of reliability and the value of a diverse generation mix.”
Roberts concluded that West Virginia is an energy-producing state. “That advantage has supported economic growth, industrial development and affordable electricity for residents and businesses alike. Maintaining that advantage will require continued investment in modern energy infrastructure.”
Letters of support
The PSC has received 662 letters of opposition to the project – virtually all identical form letters.
On Thursday, five letters of support came in – each one unique.
One writer said his company manufactures gas and oil equipment and relies on the natural gas industry to provide work for its employees. And the state has an abundance of clean, affordable and reliable natural gas. “It makes no sense to import our energy and create a reliance on others to give us this vital resource. Please allow the intelligent development and creation of our energy within our state’s borders.”
Another said, “Using in-state gas for in-state power generation keeps energy dollars circulating locally, supports more reliable supply for residents and businesses, and can reduce fuel-transport costs and emissions compared with importing gas or generating power farther away. It also strengthens regional energy security, supports local jobs across the energy value chain, and helps utilities plan generation with a dependable domestic feedstock.”
A third said, “This project helps maximize the value of each molecule of methane/natural gas produced for the full and total benefit of West Virginians via job creation, end-use of the natural gas, royalty payments to West Virginia gas royalty owners, and increased tax streams to county and state entities. All while reducing electricity costs and improving the quality of the air we breathe.”
The other two made similar points in different ways.
The Maidsville Energy Center is a proposed new 1,200 megawatt combined cycle gas turbine plant. The FirstEnergy sisters estimate that the gas-fired plant will cost $2.48 billion. The three proposed solar sites – at Valley Point near Albright; Davis, adjacent to the town; and Wylie Ridge near Weirton – will cost $182 million.
The companies are seeking approval of a Generation Projects Surcharge to become effective on the first day of the month following the conclusion of the PSC proceeding, which would remain in effect until each asset is placed in service. They estimate that the initial surcharge will result in a rate increase for residential customers of $1.18 per month or 0.9%.
