Signature Sponsor
West Virginia County Will Suffer Economic Hardship if Mitchell Plant Closes, Officials Testify

 

 

By Joselyn King


June 6, 2021 - Local officials told the West Virginia Public Service Commission this week a potential closure of the Mitchell Power Plant would be economically devastating to Marshall County and the surrounding communities.


The public service commission heard testimony Wednesday regarding Appalachian Power’s request to raise rates 1.5 percent to pay for upgrades to the Mitchell Power Plant, which would make it compliant with federal environmental regulations. The work also would take place at the Amos Plant in Winfield and the Mountaineer Plant in Letart.


Two proposals for construction and upgrades have been set forth by Appalachian Power. The first costs $317 million and keeps all three plants open until 2040. The second costs $286 million, keeps the Amos and Mountaineer plants open until 2040, but keeps the Mitchell Plant open only until 2028.


Among those providing comments to the PSC were U.S. Rep. David B. McKinley, R-W.Va.; Delegate Charlie Reynolds, R-Marshall; Delegate Lisa Zukoff, D-Marshall; and Marshall County Commissioner Mike Ferro.


McKinley said the PSC today is faced with two options — to approve the upgrades and rates required to keep the plant operational through 2040 or allow the Mitchell Plant to close by 2028.


“Others will reinforce this message that the Mitchell Plant is a significant economic driver in the region and prematurely retiring the plant would have ripple effects throughout West Virginia’s economy, jobs would be lost, tax revenue needed to fund schools and first responders would disappear, businesses like machine shops, barge operators, coal mines, railroad workers and restaurants would suffer, the (CertainTeed) gypsum plant that’s supplied by Mitchell would fold, neighboring communities would be devastated and the reliability of our electric grid would decrease,” he told the PSC.


Compounding the dilemma is that West Virginia currently gets 90 percent of its electricity from coal, according to McKinley.


“Proposed rate increases to keep Mitchell open pale in comparison to the devastation that would come with its closure,” he said.


Ferro told the board a closure of the Mitchell Plant would cost Marshall County about $2.4 million each year in tax revenue. Of that amount, $1.9 million goes to Marshall County Schools, and the remaining $500,000 to the county commission.


“I thought it was important for them to see people in person, to see how concerned we are about the welfare of all the workers who could be hurt by a negative decision” on the rate increase, Ferro said. “There’s the (CertainTeed) wallboard plant, the 1,300 coal miners at the McElroy and Shoemaker mines, and all the ancillary businesses in town.


“This … It’s about the men and women who live in the community, shop in our stores, buy groceries, attend churches, and build our buildings.”


He hopes the WVPSC approves both of the cost recovery projects.


“If they approve both of them, that would keep the plant open past 2028 — but we don’t know for how long,” Ferro said. “If just one is approved, it could stay open until 2028.


“If neither rule is approved, the Mitchell Plant could close in 2023.”


But he is hopeful the PSC will rule in the plant’s favor.


“I think at least one will be approved,” Ferro said. “I think they understand it could be devastating.”


The proceedings seemed to go well for those supporting the Mitchell Plant, according to Zukoff.


“They shook their heads positively sometimes,” she said of the PSC members. “There was overwhelming support for keeping open versus negative responses. Just one person complained about (raising) the rates, while the others were in favor of keeping the plant open until 2040.”


Zukoff said she has not received any complaints from the public about the proposed rate increase.


Reynolds said shutting down the state’s coal fired power plants “is nothing more than an attack on the West Virginia energy grid, local jobs, and tax revenue to support our schools and our police departments.”


“So if that means paying a little more on the utility bill to save those jobs and save our energy grid, I’m OK with it,” he said.


Reynolds said he does support wind and solar energy, but that it isn’t possible to flip the switch on them immediately.


“We don’t have enough of the other resources at this time. We need our coal resources,” he said. “We need those power plants. We need all of the above in West Virginia.”