West VirginiaSB 4202026 Regular SessionSenate

West Virginia First Energy Act

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 1 benefits, 0 costs, 5 mixed.

Utility rate hikes require fuel compliance

Beginning July 1, 2026, the Public Service Commission cannot consider or approve rate increases without 12 months of full compliance. Utilities must meet the 69% coal-utilization rule, 30-day coal inventory rule, and related fuel-supply requirements. Intentionally missing the utilization minimum for market gain is grounds for penalties and automatic denial of a rate request. The law sets no guaranteed bill reduction.

Coal and gas plants face fuel rules

Beginning July 1, 2026, covered West Virginia coal plants must maintain at least 69% utilization on a rolling 12-month average. They must report monthly to the Public Service Commission; falling below 69% is noncompliance. Coal plants must keep 30 days of on-site coal, based on their prior 12-month average burn rate. Gas plants must secure firm transportation or fuel contracts, with storage access or equivalent arrangements, sufficient for commission-approved peak-demand delivery. Temporary waivers of utilization or fuel rules are limited to force majeure events and what is needed to restore compliance.

Grid fund supports plants, not closures

Beginning July 1, 2026, the Electric Grid Stabilization and Security Fund supports generation-cost stability and longer plant life. Allowed uses also include fuel-security infrastructure and measures to balance power supply and demand. Projects using West Virginia-produced gas qualify for dependable power capacity, peak-demand service, or reliability support. The fund cannot pay to decommission or close operating units. The law states no funding total or direct household payment.

State power-market oversight protects utility customers

Beginning July 1, 2026, the commission oversees PJM market participation and planning, reviewing every capacity auction to benefit ratepayers and limit market swings. Where PJM rules allow, West Virginia units with PJM-listed capacity factors above 80% on enactment receive an essential-reliability designation. Covered utilities must annually report West Virginia coal tons purchased and West Virginia-produced gas volumes used to the commission and Commerce Department. Commerce must assess and report jobs supported, economic benefits, and needed workforce measures. The commission adopts implementing rules and orders and can require documents and data to calculate, report, and enforce compliance.

Utilities face limits on plant closures

Beginning July 1, 2026, utilities need commission approval to retire, deactivate, or reduce the capacity of coal or gas plants. The commission must find no increase in retail rates or exposure to wholesale-market swings, and no loss of reliable, adequate power. An equal-or-larger replacement must already operate and be available on West Virginia's grid when the change occurs. It must be an in-state coal or gas unit capable of continuous operation without depending on weather or time of day. Utilities must also analyze coal and gas use, maintenance, and plant life-extension options in their long-term power plans.

Utilities face new wind and solar limits

Beginning July 1, 2026, new wind and solar capital spending cannot enter the utility investment base used to set rates. Utilities cannot earn a regulated return on that spending or recover those capital costs through rates. Utilities failing coal-use or fuel-security rules cannot sign power-buying agreements for new intermittent resources. New agreements and commission-approved cost recovery require proof of no higher retail rates, greater PJM wholesale-market reliance, or weaker seasonal reliability. Utilities bear the burden of proof; the law sets no household savings amount.

Sponsors & Cosponsors

Sponsor

Brian Helton
Republican • Senate

Cosponsors

Mike Azinger
Republican • Senate
T. Kevan Bartlett
Republican • Senate
Craig A. Hart
Republican • Senate
Jay Taylor
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 53 • No: 13

Senate vote • 3/4/2026

Effective July 1, 2026 (Roll No. 324)

Yes: 31 • No: 2