Coal-fired generation plant idle during Winter Storm Fern, Mettiki coal to close, and energy related bills

CHARLESTON, W.Va. – When Winter Storm Fern hit our area on Saturday, it brought a lot of snow, sleet, ice, dangerously cold temperatures and an increased need for energy. Yet, a West Virginia coal-fired power plant sat idle, according to Chris Hamilton, president of the West Virginia Coal Association. 

On Thursday, during a meeting of the West Virginia Senate Committee on Energy, Industry and Mining, Hamilton spoke to committee members about a recent decision made by those at PJM Interconnection LLC, a regional wholesale energy transmission organization that serves 13 states in the eastern United States – including West Virginia – which resulted in the temporary idling of a West Virginia coal-fired power plant – the name of which was never directly revealed by Hamilton. 

According to Hamilton, this PJM decision has been “detrimental” to the state’s mining industry. 

“PJM, typically, provides an auction within a 24-hour period for power generators to bid into the process of meeting the economic dispatch,” Hamilton explained, adding that this bidding process has historically been the practice, even though it may have been “a little unfair” to coal. 

“But, at the end of last week, right in preparation of the oncoming storm, they decided, PJM decided, to extend that 24-hour bid period to six to eight days, and they only extended that opportunity to Pennsylvania natural gas facilities,” Hamilton said. “Consequently, they padded the quantity in anticipation of a much bigger storm or weather event than what we actually had. Consequently, we’re not able to get any West Virginia coal-fired electric generation into the PJM. We have coal plants sitting idle today at a time when they ought to just be running wide open and our miners working around the clock to provide that base fuel.” 

Hamilton added that natural gas prices went over $6 per million Btu during this event. 

“The Harrison Power Station, for instance, generates coal-fired electricity at $2.81, and it cannot get into the PJM system today because of the bloat of Pennsylvania gas that’s sitting there in the reserve,” Hamilton said. “And, there’s some other issues involved which is causing the congestion within the PJM system of being able to dispatch not only Harrison, but Fort Martin facility as well into the Virginia and Maryland districts.” 

Hamilton said this has cost several members of the West Virginia Coal Association, the largest state coal industry trade association in the United States, “upwards of $10 million.” 

Hamilton told members of the Senate Committee on Energy, Industry and Mining that Gov. Patrick Morrisey has been made aware of the situation and is looking into it. 

“It’s really discriminating, and penalizing our energy assets in the state that we depend so much on,” Hamilton said. “And, our consumers benefit when these plants run at that higher capacity factor as well.” 

All of the state’s coal-fired plants haven’t been affected by this like FirstEnergy’s plants have been, Hamilton noted. 

With this news, provided by Hamilton, Sen. Rupie Phillips, R-Logan, questioned what would happen if West Virginia pulled out of the PJM wholesale energy organization all together, something that other states, like Pennsylvania and Virginia, have considered. 

“It’s a complex issue with the question of staying in or opting out. I’m told there’s huge financial penalties involved if you elect as a state to opt out of the grid operator that your state’s a part of. But, you know, just my members this week reported a loss of over $20 million,” Hamilton said, adding that those companies would probably vote to opt-out of PJM based on recent events. 

In response to further questioning from state legislators, Hamilton added that the state could better utilize the West Virginia Public Energy Authority, first created by Gov. Arch Moore in the 1980s, to help make energy-related decisions. 

“I just mentioned to you that we have a major coal-fired unit, and it employs 1,000 people, generates over $2 billion in economic activity and commerce in our state and keeps a couple major long-wall mines operating with 400 plus employees at each of those two mines – and it hasn’t operated in a week,” Hamilton said. “Whose responsibility is that? Who should know that? Who should have the real time information on the condition of these plants, which ones are running, which ones aren’t running? The Public Service [Commission] doesn’t have that information. That’s not within their realm of responsibility.” 

Hamilton said the state needs to be able to have this information. 

“I think it’s criminal what they’ve done,” Hamilton said. “I mean, I really do. I mean, we have miners going home wondering if they’re gonna be furloughed here because of this,” Hamilton said. “There’s a lot of cost involved.” 

Mettiki Coal

Hamilton was also asked by Sen. Jay Taylor, R-Taylor, about the breaking news that Mettiki Coal would be closing its Tucker County mine on April 1, resulting in the loss of about 200 jobs. 

Hamilton said that he wasn’t aware of the news, but he had heard rumors that a utility may “cease taking coal from Mettiki.” 

“I heard that, again, I’m just sharing what I heard, the utility was going to cease taking coal supplies from Mettiki, and there’s a utility that’s regulated in Virginia, owned by Dominion Energy, that’s a stone’s throw from the Mettiki mine – that’s why the Mettiki mine was developed, had all that investment – and the rumor was, a couple weeks ago, it was going to cease taking coal,” Hamilton said. 

In a later social media post, when the news was confirmed, Taylor wrote the following: 

“I’m angry and heartbroken to hear that Mettiki Coal is closing the Mountain View Mine in Tucker County, putting nearly 200 West Virginia miners out of work.

Let’s be clear: this is exactly what the war on coal looks like.

For years, federal policies and radical environmental agendas have piled regulations on our energy industry, making it harder to operate, harder to invest, and easier to ship American energy jobs somewhere else.

These are not just jobs — these are families, communities, and a way of life in Tucker County.

West Virginia powered this nation, and we will not stand by while our workers are sacrificed for political talking points.

I will fight for our miners, fight for West Virginia energy, and fight to make sure Tucker County is not left behind.”

Senate Bill 15: Protecting coal, oil & gas

The very first bill passed out of the West Virginia Senate this legislative session was Senate Bill 15, a bill to protect coal and oil and gas minerals from carbon capture practices and carbon storage projects. 

As explained by Sen. Chris Rose, R-Monongalia, and chair of the Senate Energy, Industry and Mining committee, “Natural gas storage relies on stable underground reservoirs and pressure conditions over long periods of time, and those conditions can be affected by nearby carbon injection if storage is not specifically considered.” 

Rose stated that this bill protects coal and natural gas development by “requiring broader geologic review of underground layers involved, including formations above and below the carbon storage zone to prevent pressure changes or gas movement that could interfere with gas drilling, mining or future development.” 

This bill is currently in the House Energy and Public Works committee awaiting further consideration. 

Senate Bill 25: protecting coal markets & coal facilities

On Thursday, the Senate Energy, Industry and Mining Committee advanced a committee substitute for SB 25, creating the West Virginia Coal Marketing Program to protect and expand the state’s coal markets and coal facilities. 

According to the bill, the program would be funded through the “West Virginia Coal Mining Fund,” with revenue coming from fees collected from specialized “Friends of Coal” license plates through the DMV. The program would be administered by the governor’s office. 

The committee substitute removes the $1 million provision for the program and implements the DMV as a funding source.

The bill must now be considered by the Senate Finance Committee. 

Senate Bill 131: Tax credit for coal & natural gas

The committee substitute for SB 131 also passed the Senate Energy, Industry and Mining Committee on Thursday. 

This bill, the “West Virginia Road and Highways Infrastructure Improvements and Coal Production and Processing Facilities Tax Credit Act,” seeks to “encourage greater capital investment in coal production and coal and natural gas processing facilities by creating a new severance tax credit for certain coal and natural gas related construction improvements.”

West Virginia Coal Association President Chris Hamiliton spoke regarding this bill.  

According to Hamilton, this bill encourages coal companies, both metallurgical and thermal, to develop infrastructure like roads and bridges. 

“With respect to the infrastructure on the mine, it provides credit against the severance,” Hamilton said. “We think this will help to incentivize the next generation of mining assets and expansion of some of those existing mines that are out there today based on forecasts of additional productivity and output coming from our state’s mining operations. It will help offset the costs of shaft developments, slope development, some conveyor belt systems and other infrastructures necessary to sustain that mining operation.” 

A fiscal note attached to the bill, states that “the provisions of this bill would create two separate investment tax credit applications for the coal industry effective January 1, 2027.” 

“Beginning in FY2028, passage of this bill would result in an annual General Revenue Fund loss of roughly $43.0 million to $56.0 million per year based on current coal prices and current collection trends,” the fiscal note states. 

Hamilton added that even with all of the help from the federal government, there are concerns surrounding the mining industry, including heavy equipment supply chain issues and metallurgical coal price drops – as much as 40% in the last nine months. 

“Plus, we’re experiencing some pretty tough competition domestically,” Hamilton said. “You know, even though we’re the nation’s largest producer of metallurgical coal, we’re still facing some pretty stiff competition from the state of Alabama and the state of Pennsylvania, and those states have zero severance tax and they’re getting some in-state incentives to help offset the cost of developing those operations.” 

SB 131 will now be considered by the Senate Finance Committee. 

Senate Bill 424: The Establishing Affordable Electricity and Economic Growth Act

SB 424, a committee substitute, was also passed by the Senate Energy, Industry and Mining Committee on Thursday. 

This bill changes the names of the Coal Fired Grid Stabilization and Security Act of 2023 to the “Establishing Affordable Electricity and Economic Growth Act of 2026,” and aims to bring state regulatory and economic policies in alignment to help advance coke production and steelmaking in the state. 

This bill will now be considered in the Senate Finance Committee.