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PSC Proposed Rule to Implement Provisions of HB 2014: Capacity Factors and Economic Dispatch- Initial Comments Filed

 

 

 

August 12, 2026 On July 20, the West Virginia Public Service Commission (PSC) initiated a case docket and published a proposed administrative rule for public comment to implement certain provisions of House Bill (HB) 2014.

 

Passed by the West Virginia Legislature in the 2025 Regular Session, HB 2014, along with provisions related to microgrids, data centers and integrated resource planning, required the PSC to develop rules to ensure West Virginia’s utility-owned electric generating assets are being operated correctly and to the benefit of state ratepayers.  HB 2014 established a definition of “consumer economic dispatch”, required the utilities to maximize generation at their own plants when self-generation would result in lower costs for customers and that operators maintain their generating units to operate at a minimum capacity factor of 69%.  A copy of HB 2014 is available at https://www.wvlegislature.gov/Bill_Text_HTML/2025_SESSIONS/RS/bills/hb2014%20sub1%20enr.pdf  The economic dispatch and capacity factor provisions of the legislation begin on page 23 of the linked document.   

 

In response to the rulemaking mandates on HB 2015, the PSC published a new proposed rule labeled as 150 CSR 41.  A copy of the proposed rule is available at https://apps.sos.wv.gov/adlaw/csr/readfile.aspx?DocId=59215&Format=PDF  concurrent with the proposed rule, the PSC opened a case docket and established two comment periods on the proposal.  The initial comment period closed on Monday, August 10 and the “reply comment period” will close on Thursday, August 20.  A copy of the PSC’s order and public notice establishing the two-part comment period is available at https://www.psc.state.wv.us/scripts/WebDocket/ViewDocument.cfm?CaseActivityID=667296&NotType=WebDocket 

 

Several comments were filed as part of the first public comment period.  The West Virginia operating subsidiaries of American Electric Power (AEP) and First Energy (FE) both filed comments opposing the PSC’s proposed rule.  The AEP companies also offered suggested revisions to the PSC proposal.  The AEP comments and supporting attachments are available at https://www.psc.state.wv.us/scripts/WebDocket/ViewDocument.cfm?CaseActivityID=668458&NotType=WebDocket   The AEP-suggested changes to the PSC’s original daft rule begin on page 32 of the linked document.  FE’s comments can be found at https://www.psc.state.wv.us/scripts/WebDocket/ViewDocument.cfm?CaseActivityID=668441&NotType=WebDocket

 

The West Virginia Energy Users Group (large electric consumers) filed comments seeking further clarification regarding the parameters of “economic dispatch” and the “must run” provisions of the rule.   The Energy Users group also offered suggested changes to the PSC proposed rule language, which begin on page 10 of the linked document. 

 

The Association and the United Mine Workers of America filed comments in support of the draft rule.  WVCA’s comments are available at https://www.psc.state.wv.us/scripts/WebDocket/ViewDocument.cfm?CaseActivityID=668446&NotType=WebDocket  The UMWA’s comments can be found at https://www.psc.state.wv.us/scripts/WebDocket/ViewDocument.cfm?CaseActivityID=668508&NotType=WebDocket 

 

The Sierra Club and the West Virginia Citizens Action Group filed comments opposing the PSC rule. 

 

We are reviewing the initial filings and plan to file supplemental comments by the close of the second comment period next week.

 

The proposed rule will ultimately be considered by the West Virginia Legislature during the 2027 Regular Session as part of the state’s rulemaking review process.

 

For any questions or more information, please e-mail jbostic@wvcoal.com.