PSC Witness: Appalachian Power Is Losing Money On Coal Plants

By Curtis Tate for West Virginia Public Broadcasting

Over a 12-month period in 2023 and 2024, Appalachian Power lost $87 million running its Amos, Mountaineer and Mitchell plants, according to written testimony filed to the West Virginia Public Service Commission.

Chelsea Hotaling, an energy consultant working on behalf of Citizen Action Group, Solar United Neighbors and Energy Efficient West Virginia, wrote that the company did this to burn off an excess supply of coal.

Appalachian Power is seeking a fuel cost recovery from the PSC that would add roughly $2 a month to the average electricity customer’s bill.

It’s not clear whether the loss at the three power plants is part of the proposed increase.

Emmett Pepper, policy director for Energy Efficient West Virginia, says Appalachian Power’s customers should not have to bear that cost.

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PSC wraps up coal-cost task force investigation, order utilities to pursue energy efficiency programs for customers

By: David Beard, The Dominion Post

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."

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Energy Freedom Advocates Succeed in Protecting Access to Solar Throughout West Virginia

CHARLESTON, W.Va. – CHARLESTON, W.Va. – After months of advocacy from West Virginians and community groups, the Public Service Commision approved a settlement that will help protect the growth of solar in West Virginia. Last year, utilities Mon Power and Potomac Edison proposed substantially altering the state’s net metering system, reducing the credit that customers receive for generating and contributing excess solar power to the grid.  The Commission-approved settlement, which solar advocates helped negotiate, protects the rights of existing net metering customers, provides nine more months for new customers to enroll in net metering, and establishes a fair rate for customers who enroll in 2025 and future years.

Up to now, all West Virginia net metering customers have been credited at a 1-to-1 rate, meaning energy they provide to the grid is worth the same as energy bought from utilities. Before this case was filed, residential customers received 11.5 for every kilowatt-hour of energy they contributed to the grid. Mon Power and Potomac Edison initially proposed slashing this rate to nearly 6.6 cents per kilowatt-hour.

This attack on energy freedom sparked outrage among West Virginians statewide, including a coalition of representatives from members of West Virginians for Energy Freedom (WV4EF), including West Virginia Citizen Action Group, The West Virginia Environmental Council, Solar United Neighbors, Energy Efficient West Virginia, and Solar Holler. Energy freedom advocates signed petitions, attended public hearings, rallied at the State Capitol, and sent over 1,500 letters of protest to the Public Service Commission.  

Due largely to these grassroots efforts, the newly-signed settlement ensures existing net metering customers will keep their 1-to-1 credit rate for the next 25 years. Customers who apply to participate in net metering before the end of 2024 will also be guaranteed this rate—as long as they meet certain installation deadlines. Those who apply for interconnection after the end of 2024 will receive a rate of roughly 9.34 cents per kilowatt hour contributed, a rate that will be locked in for a two-year period before it can change. 

“When solar supporters join together, we win. Thanks to the activism of thousands of West Virginians, plus our tenacious legal team, solar will enjoy a promising future in our state,” said Leah Barbor, a founding member of WV4EF and West Virginia Program Director of Solar United Neighbors. “With the extension of 1-to-1 net metering credits through the end of the year, 2024 is a great time for homeowners to join the state’s rapidly growing solar industry, which is creating jobs, helping families build wealth, and increasing the reliability of our energy grid.”  

Regrettably, the Commission did not accept another settlement term that would prevent the net metering credit from changing by more than 10 percent from year to year. “We are disappointed that the rate stability term was not adopted,” said Barbor. “This term will make it harder for low- and middle-income West Virginians to go solar.” Parties in the case are evaluating potential next steps.

On the same day, the Public Service Commission approved three other settlements that were supported by several members of WV4EF. Those settlements included provisions that are also supportive of energy freedom. One of the settlements maintained funding of a program that helps low-income customers pay their bills, and establishes a program that will help low- and middle-income ratepayers access support to reduce energy burdens. Another settlement will help ensure that Mon Power’s power plants, whose costs are passed on to ratepayers, are operated more economically in future years.

“In addition to protecting solar, we’re pleased that the expensive FirstEnergy-owned power plants will be scrutinized to ensure they are run in a cost-effective way,” said Gary Zuckett, Executive Director of West Virginia Citizen Action, “and that low-income customers can avoid shutoffs with continued support from utility contributions to the Dollar Energy Fund.”

"Access to weatherization and efficiency programs is essential," stated Robin Blakeman, Executive Director of Energy Efficient West Virginia. “With the expansion of the Energy Assistance Outreach program and enhanced weatherization support, we're poised to significantly reduce energy usage for low-income West Virginians,” Blakeman continued.

These landmark settlements, enriched by the unwavering dedication of West Virginia's energy advocates and underscored by these strategic enhancements to energy assistance and efficiency programs, marks a significant step forward in ensuring a sustainable, equitable energy future for all West Virginians.

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Contact: Courtney MacDonald, 781-974-3137, courtney@energyfreedomwv.org

West Virginians for Energy Freedom is a coalition of neighbors, community organizations, local businesses, municipalities, and elected officials advocating for energy freedom in West Virginia.

FirstEnergy utilities, solar advocates reach net metering agreement in PSC case

By Mike Tony, Charleston Gazette-Mail

After months of division, solar energy advocates and FirstEnergy utilities have come to an agreement addressing a proposal the advocates said threatened to curtail future solar development in West Virginia and short-change utility customers.

Solar proponents and the utilities have asked the West Virginia Public Service Commission to approve their agreement to resolve a dispute over the future of net metering, a mechanism that credits customers for energy they generate.

The initial proposal from the utilities, Mon Power and Potomac Edison, drew intense opposition for a rate case before the PSC from throughout and beyond their service territory, as solar advocates rallied against what they viewed as an attack on their energy freedom.

The utilities, Mon Power and Potomac Edison, wanted to change the mechanism so that customer-produced solar energy would no longer be valued at the same rate charged for energy provided by the companies for new net metering enrollees starting March 27.

In net metering, a residential customer owns or leases and operates a renewable energy resource connected on their side of the utility meter. If the customer supplies more energy to Mon Power and Potomac Edison than they get in a billing period, the remainder has been banked by the companies and credited to the customers in future billing cycles when they produce less energy than needed from the utilities.

The result is customer-produced energy valued at the same rate charged for energy provided by the companies.

Opponents of the initial net metering plan proposed by Mon Power and Potomac Edison argued it would discourage customer investment in solar that lowers electricity costs, diversifies the state’s energy mix and benefits the environment.

FirstEnergy has said the proposal was appropriate to keep other customers from subsidizing net metering customers. A witness for the PSC’s Consumer Advocate Division, an independent arm of the PSC representing residential ratepayers, supported the utilities’ proposal, estimating residential net metering customers generated nearly $1.5 million in subsidies paid for by non-net metering residential customers from January 2019 through August 2023.

Mon Power and Potomac Edison wanted to credit a customer’s account at a wholesale market price approved annually in fuel cost rate proceedings, proposing a residential credit of roughly 6.6 cents per kilowatt-hour.

In their agreement that includes groups that opposed their original proposal — the West Virginia Citizen Action Group, Solar United Neighbors, Energy Efficient West Virginia and Jefferson County- based solar installer and developer Solar Holler LLC — the utilities agreed to propose a credit of roughly 9.3 cents per kilowatt-hour.

Per the agreement, customers who generate their own power that submit an online application or interconnection request form to the utilities by Dec. 31, 2024, and receive a completion certificate by Dec. 31, 2025 (for a residential customer), or by June 30, 2026 (for a nonresidential customer), will be credited at the retail rate for the metered energy they produce and deliver to the utility electric system.

If approved by the PSC, credit rates would remain unchanged for two years starting Jan. 1, 2025, with credit rates for calendar year 2027 to be determined in the utilities’ 2026 fuel cost rate case.

In an email Sunday, Solar Holler founder Dan Conant touted customers’ ability under the proposed agreement to go solar for almost another year at a “one-to-one” rate, credited equal to how much electricity they produce and deliver, plus another year to get their systems installed.

“While no compromise is perfect, we’re pleased with the outcome of this negotiation and hope the [PSC] will agree it’s in West Virginia’s best interest,” Conant said in a separate statement Friday.

FirstEnergy spokesperson Hannah Catlett said in a statement Friday the agreement would help ensure new net metering customers pay a portion of costs related to distribution, transmission and capacity facilities they use by adjusting the credit amount that new net energy metering customers receive.

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Poll: West Virginians support solar projects, policies

By Michael Lemley, The State Journal

CHARLESTON, W.Va. (WV News) — A group of solar power industry representatives and other officials held a press conference Thursday to discuss results of a recent poll and bills that have been proposed in the West Virginia Legislature.

The poll, conducted by Echelon Insights in December, showed general support among West Virginians for various solar initiatives, including community solar programs and net metering.

“[Net metering] allows customers to get a dollar-for-dollar credit on their electric bill if their solar panels produce more energy than they use, creating additional electricity for the utility,” said Patrick Ruffini, co-founder and partner of Echelon Insights, who presented the data.

A majority of the survey’s respondents expressed support for net metering, with 40% strongly supporting and another 30% somewhat supporting.

The measure also saw bipartisan support, according to the survey data, with 60% support among Republicans, 74% among independent voters and 79% among Democrats, Ruffini said.

Survey results also showed general support for community solar programs, which allow residential customers to tap into power from nearby solar panels, with 69% in support (37% somewhat, 32% strongly).

Additionally, 78% of respondents said it would be a good idea for more West Virginians to own and benefit from their own solar panels, and 54% said they believe residential rooftop solar usage should be incentivized.

“No matter which way you slice it, West Virginians are strongly supportive of the concept of solar power, for residents and consumers to take advantage of solar panels and for policies that will help them do that and help them benefit from that,” Ruffini said.

Dan Conant, founder and CEO of Solar Holler — a business that works to help other businesses, nonprofits and families to implement solar power — said this survey data reflects the trends the company has seen over its 10-year history.

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