Welcome to the Winter 2025 issue of the West Virginia Energy Consumer Update, a publication of the West Virginia Energy Users Group (WVEUG). We aim to provide accurate, fact-based information on energy rates and issues, in part to clarify ongoing misunderstandings about energy production and consumption in West Virginia and its impact on the state’s economy. Our goal is to promote changes necessary to position West Virginia as a leader in the energy field and advance West Virginia’s economy.

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Governor Morrissey has made clear that West Virginia will directly engage its neighbors in all facets of economic development, but a key issue for manufacturing and industry in the state remains the need for more competitively priced electricity and an array of power supply choices. It is simply a fact that West Virginia is losing the fight on this issue; once the lowest in the region with a true competitive advantage, West Virginia’s electric rates are at best the same as, and often higher than, regional rates for business and industry. The chart below is based on the most recent comparative rate data released by the independent Energy Information Administration (“EIA”):

On top of that stark reality, business and industry in all adjacent states except Kentucky (where rates are lower) have the ability to purchase their power needs in the competitive market, taking advantage of scope, scale, energy source options, and the benefits of free market competition. West Virginia business and industry has no such option.

At the same time, surrounding states have taken advantage of the broader economic opportunities made available by ample energy resources, such as natural gas, which West Virginia has failed to seize. In the past 20 years since the advent of the Marcellus Shale play, West Virginia has had zero new natural gas fired power plants come online. Conversely, Ohio and Pennsylvania have brought at least 17 large scale natural gas fired power plants to fruition in that same period, and even Maryland has added two.

West Virginia has a history as an energy state with concomitant economic advantages, and it needs to reclaim that history now and for the future. And although the state has done a good job in attracting new business, a renewed focus must be placed on existing manufacturing and industry in the state.

A good start would be to broaden so-called “micro-grid” and related legislation to clarify that large manufacturing/industrial/data users of power can engage a third-party to build and operate generation to serve their load (and adjacent load) as if it were self-generated and “behind-the-meter” (“BTM”). And that must be available for any fuel source, without site restrictions, and for existing business and industry in the state (not just new customers or new electric load for existing customers). 

Another priority should be to allow the largest consumers of power to benefit from free market competition in the electric sector. As AEP and FirstEnergy become short on generation capacity in West Virginia, rather than have these monopoly utilities purchase or build new power plants – which will burden West Virginia ratepayers for years to come – let the largest consumers of power (who are willing to assume the risk) acquire the capacity and energy that they need from the existing PJM market – just like large business and industry users are allowed to do in Ohio, Maryland, Pennsylvania, and Virginia. In this way, the utility avoids investment costs that they would recover from all other ratepayers over decades, insulating those customers from the risk of such additional investment. Because large users would be acquiring their own capacity, which AEP and FirstEnergy do not have but would otherwise need to build or buy, there would be no so-called “stranded costs.”

AEP’s (Appalachian Power Company and Wheeling Power Company) tariff rates for its large manufacturing and industrial consumers in West Virginia have increased by about 50% in the past five years and, per recently released EIA data, are higher than the comparable rates in every surrounding state except Maryland. In 2024, AEP filed with the Public Service Commission no fewer than ten cases seeking additional surcharge, fuel, and base rate increases. In 2025, AEP has pending before the PSC yet another massive rate increase case seeking $250 million, in addition to other pending and anticipated rate increase requests this year. If AEP succeeds in its requests, its rates for large consumers would rank 40^th among the 50 states, based on the most recent data from EIA. Needless to say, WVEUG is doing its level best to fight such increases at the PSC for the sake of business and industry.

©2025 West Virginia Energy Users Group