WV trailing other states in moves to protect ratepayers from data center impacts
West Virginia lawmakers are concerned about rising electric bills due to regional data center growth and the associated need for new transmission lines and power infrastructure. They questioned state regulators and utility representatives about protecting ratepayers, but were told federal regulators and utilities hold more agency. Other states are taking more aggressive action to control data center-related electricity costs.
West Virginia lawmakers expressed significant concerns during a Joint Standing Judiciary Committee meeting about the potential for soaring electric bills resulting from regional data center growth and proposed interstate transmission lines. Members questioned representatives from the state Public Service Commission (PSC), American Electric Power (AEP), and FirstEnergy on how to protect ratepayers amid increasing data center power demand.
PSC consultant Terry Eads stated that there is little the state Legislature can do, suggesting that more agency over ratepayer bills rests with federal regulators, specifically the Federal Energy Regulatory Commission (FERC), which is expected to approve new rate design and cost allocation methodology for PJM Interconnection LLC member states. This contrasts with other states that are proactively implementing new large demand tariffs and embracing renewable energy to mitigate data center-related cost increases for residential consumers.
Delegate Kayla Young, D-Kanawha, criticized the supermajority-Republican Legislature for not doing enough, arguing that wealthy corporations should not be subsidized. The discussion also touched on FirstEnergy's pending PSC application for a $2.47 billion gas plant in Monongalia County, with intervenors criticizing the company's reliance on a single data center's expected demand to justify the project. Additionally, AEP subsidiary Appalachian Power and FirstEnergy highlighted significant supply-chain bottlenecks for critical equipment like transformers and gas turbines, causing multi-year delays for new power infrastructure. Appalachian Power also noted its efforts to advocate for weaker environmental regulations for coal-fired power plants.