West Virginia First Energy Act

SB 420 Text

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= existing Code.
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WEST virginia legislature
2026 regular session
Committee Substitute
for
Senate Bill 420
By Senators Helton, Bartlett, Azinger, and Hart
[Reported February 23, 2026, from the Committee on Energy, Industry, and Mining]

A BILL to amend the Code of West Virginia, 1931, as amended, by adding a new article, designated §24-9-1, §24-9-2, §24-9-3, §24-9-4, §24-9-5, §24-9-6, §24-9-7, §24-9-8, §24-9-9, and §24-9-10, relating to creating the West Virginia First Energy Act; providing legislative findings, purpose, and definitions; setting certain minimum operational utilization goal for coal-fired generation and providing incentives for attainment; providing certain protections against premature termination of certain electric-generating facilities and placing limitation on announcements of such termination; restricting certain recoupment of certain expenditures associated with certain intermittent generation resources; requiring certain utilities to include in their integrated resource plans an analysis of coal and natural gas utilization, maintenance, and life extension; directing use of moneys in the Electric Grid Stabilization and Security Fund; requiring certain coordination between Public Service Commission and Public Energy Authority; expanding powers, duties, and responsibilities of Public Energy Authority; providing certain oversight of PJM market participation and resource planning; requiring certain electric utilities to perform operational analysis and maintain operational plan; providing operational plan criteria; providing certain Public Service Commission and Public Energy Authority oversight of operational plans; requiring certain electric utilities to maintain minimum supply of certain resources; providing certain reporting requirements; and requiring certain orders, directives, and requirements to implement the act.
Be it enacted by the Legislature of West Virginia:

ARTICLE 9. WEst Virginia First Energy Act.

§24-9-1 West Virginia First Energy Act; legislative findings; purpose; definitions.

(a) This article is and may be cited as the “West Virginia First Energy Act”.
(b) The Legislature finds as follows:
(1) Coal-fired and natural-gas-fired electric generation are essential to West Virginia’s reliability, affordability, and energy security;
(2) For decades, West Virginia maintained some of the most stable electric rates in the nation due to the consistent use of in-state coal generation;
(3) As the utilization of coal-fired generation has declined and greater dependence has developed on out-of-state and intermittent sources, West Virginia’s electric rates have become increasingly volatile, threatening both affordability and reliability;
(4) United States President Donald J. Trump issued Executive Order Numbers 14156 and 14154, declaring a National Energy Emergency, directing the federal government to unleash American energy production, and pledging to reverse federal initiatives and regulations that undermine domestic fossil energy, including coal, and to restore policies that support affordable, reliable energy production for American families and industry;
(5) President Trump’s National Energy Emergency directives recognize that:
(A) Coal, natural gas, and other domestic fossil energy resources are central to national security, grid reliability, and economic competitiveness; and
(B) West Virginia’s abundant coal and natural-gas resources provide the foundation of dispatchable generation needed to maintain year-round reliability, economic competitiveness, and protection from external market disruptions;
(6) President Trump, through his National Energy Dominance Council and the federal Environmental Protection Agency, is revamping all policies and regulations impacting coal-fired electric generators so they can run more efficiently, for greater duration at optimum operation, and thus contribute more to West Virginia’s energy output, coal-related employment levels, and overall economic health;
(7) In enacting House Bill 2014 (2025 Regular Session), the Legislature incorporated provisions in §24-2-19 of this code requiring in-state coal-fired electric generators to file revised integrated resource plans specifying the necessary plant upgrades and improvements so their plants can operate well beyond their scheduled retirement dates at higher operating capacity levels;
(8) Matters generally related to homeland security and national defense are of paramount importance to West Virginia and its residents and coal-fired power plants provide optimal protection and resiliency toward state security and uninterrupted power supplies for household, industrial, and military applications; and
(9) In 2023, the Public Energy Authority was reactivated to provide needed assistance to the state’s coal and natural gas industries and coal-based electric generation but has not been given the proper support and resources to achieve its purpose, intent, and desired results.
(c) The purpose of this article is to:
(1) Restore electric rate stability through the continued utilization of in-state coal generation;
(2) Preserve employment and investment in West Virginia’s coal and natural gas industries;
(3) Coordinate with the Electric Grid Stabilization and Security Fund to sustain dependable baseload and mid-load generation capacity statewide; and
(4) Empower the Public Energy Authority to collect and assemble real-time knowledge of in-state electric-generating facilities, their continuous output of power, and the upgrades completed or planned for plants to achieve a higher capacity factor and optimum performance;
(d) As used in this article:
“Coal-fired facility” means a coal-fired electric-generating facility that is regulated by the Public Service Commission;
“Dispatchable, non-intermittent replacement resource" means a coal-fired or natural gas-fired electric generating unit that is physically located in West Virginia and capable of continuous operation regardless of weather conditions or time of day;
“PJM” means the PJM Interconnection LLC regional transmission organization; and
“Public Energy Authority” means the West Virginia Public Energy Authority created in §5D-1-4 of this code.

§24-9-2. Minimum operational utilization requirement for coal-fired generation.

(a)
Each coal-fired facility located in West Virginia that supplies regulated utilities shall strive to achieve

a minimum 69 percent utilization rate, measured on a 12-month rolling average.
(b) This utilization standard does not apply to natural gas-fired generation, which serves as a load-following and reliability-balancing resource within the state’s dispatchable fleet.
(c) Monthly utilization data for coal-fired facilities shall be reported to the Public Service Commission and Public Energy Authority in a manner prescribed by rules promulgated by the commission in conjunction with the Public Energy Authority.
(d) A coal-fired facility’s failure to maintain the minimum utilization level constitutes noncompliance with this article.
(e) The commission, in consultation with the Public Energy Authority, shall promulgate rules within 100 days of the effective date of this section to establish a rate recovery program based on a utility’s good faith effort to maintain the 69 percent capacity factor program. At a minimum, the program shall assign a percentage of cost recovery to each range of compliance comprised of increments of 10 percentage points. Any time a utility is not generating electricity due to a planned outage for upgrades or necessary maintenance is not factored into the calculation used to measure compliance and corresponding rate recovery with this section.

§24-9-3. Protection against premature retirement.

(a) A utility may not retire, deactivate, or otherwise reduce the capacity of any coal-fired or natural gas-fired electric generating facility without prior approval of the Public Service Commission and Public Energy Authority. The commission may approve such an action only if it finds that:
(1) The change will not:
(A) Increase retail rates;
(B) Increase exposure to wholesale market volatility; and
(C) Reduce grid reliability or resource adequacy; and
(2) An in-state, dispatchable, non-intermittent replacement resource of equal or greater capacity is already operational and available on the West Virginia grid at the time of the proposed retirement, deactivation, or reduction.
(b) Unauthorized retirement, deactivation, or reduction is a violation of this section that is enforceable by the commission.

§24-9-4. Restrictions on intermittent resource investment.

(a) A utility regulated by the Public Service Commission may not include in rate base, seek regulated rate of return on, nor obtain cost recovery for any capital expenditure associated with construction, acquisition, expansion, or repowering of any new intermittent generation resource, including wind or solar.
(b) Any utility subject to but not in compliance with §24-9-2 or §24-9-3 of this code is prohibited from entering into a power purchase agreement for any new intermittent generation resource, including wind or solar.
(c) The commission may not approve cost recovery for intermittent resource generation unless the utility demonstrates that the investment:
(1) Does not increase retail rates;
(2) Does not increase reliance on PJM wholesale markets; and
(3) Does not reduce seasonal reliability.
(d) The burden of proof rests solely on the utility to demonstrate the provisions of subsection (c) of this section.

§24-9-5. Rate increases contingent on compliance.

The Public Service Commission may consider or approve any rate increase only as is consistent with the utility’s compliance with §24-9-2 of this code.

§24-9-6. Electric grid stabilization and security fund coordination.

Notwithstanding any provision of this code to the contrary, moneys from the Electric Grid Stabilization and Security Fund, created in §5B-2N-1
et seq.
of this code, shall be used to stabilize generation costs and to support life-extension projects, fuel-security infrastructure, and grid-balancing measures, but may not be used for decommissioning or closing operating units.

§24-9-7. Oversight of PJM market participation and resource planning.

(a) The Public Service Commission and the Public Energy Authority shall evaluate each PJM capacity auction and ensure West Virginia generating units participate to maximize ratepayer benefit and limit exposure to market volatility. To the extent allowable by PJM market rules, any generating unit located in West Virginia with a capacity factor greater than 80% as listed by PJM on the date of enactment shall be designated an essential reliability resource for purposes of state oversight and participation.
(b) Each regulated utility shall include coal and natural gas utilization, maintenance, and life-extension analysis in its integrated resource plan.
(c) The commission shall promulgate rules or adopt orders to implement this section and ensure alignment with state reliability and affordability goals.

§24-9-8. Public utility requirements; operation plans; reporting.

(a) Any coal-fired utility shall perform an operational analysis of each coal-fired unit within its plan or system of generators to identify feasible and technological upgrades to improve performance and extend efficient plant life cycle.
(b) On or before January 1, 2027, each utility shall submit the findings of its operational analysis to the Public Service Commission and Public Energy Authority along with the operation plan required by this section. A utility’s integrated resource plan required by §24-2-19 of this code will satisfy the initial submission requirement of this section. The operational plan shall be updated annually thereafter.
(c) The commission may not consider an application for cost recovery until the Public Energy Authority accepts the operational plan and determines that it is administratively complete and authentic.
(d) For purposes of fuel and grid resiliency and homeland security, on or before January 1, 2027, any utility generating electric power for industrial or residential consumption within the state shall establish, and thereafter maintain, a minimum 30-day supply of the base fuel used to generate electricity.
(e)
Operational plan; minimum requirements
. — At a minimum, the operational plan shall contain the following:
(1) The plant fuel supply for the generation of electricity;
(2) The total distribution of electricity for each plant;
(3) How coal supply levels are to be maintained for each plant, including all fuel supply contracts and a complete listing of fuel suppliers;
(4) All necessary plant upgrades to be proposed, started, or completed over the ensuing three-year cycle along with all pertinent contractors, including a copy of the scope of work and beginning and completion dates;
(5) The status of all upgrades completed, announced, or previously incorporated into the plan for any previous cycle;
(6) A maintenance schedule of all routine, scheduled, or planned maintenance along with a record of all unplanned or nonscheduled events leading to or causing emergency or needed maintenance;
(7) An up-to-date accounting of all expenditures or costs which have been recovered or for which an application for recovery has been submitted; and
(8) Information on any grants or low interest loans received from any state or federal agency.
(f) The commission shall coordinate with each utility and the Public Energy Authority and may require utilities to submit any documents, records, or data necessary to ensure accurate calculation and reporting under this article.

§24-9-9. Additional duties of Public Energy Authority.

(a) In addition to those specified in §5D-1-1
et seq.
of this code, the Public Energy Authority has the following powers, duties, and responsibilities to ensure electric grid stability and homeland security:
(1) Meet with every public utility operating within this state to:
(A) Ascertain the general condition of each plant;
(B) Ascertain implementation of the operational plan;
(C) Consult with the plant operator to solicit any information required to verify progress completed on the most recently approved operational plan; and
(D) Verify the 30-day base fuel supply as required by §24-9-8 of this code; and
(2) At least annually, submit a report of its inspection findings and overall condition of public utilities operating within the state to the Department of Homeland Security’s Division of Emergency Management, the Public Service Commission, and the Joint Committee on Government and Finance.
(b) Before any public utility publicly announces the retirement of a coal-fired unit, proposed shutdown of a coal-fired unit, closure of a plant, or proposed sale of a plant to another operator, the plant operator or public utility shall:
(1) Provide notice of the impending action to the Public Energy Authority, Department of Homeland Security’s Division of Emergency Management, Public Service Commission, and Joint Committee on Government and Finance; and
(2) Receive approval for the impending action from the Public Energy Authority and Public Service Commission.
(c) The provisions of subsection (b) of this section do not apply where a plant would require emergency deenergization or shutdown for imminent danger or public safety.

§24-9-10. Implementation.

The Public Service Commission, in consultation with the Public Energy Authority, shall issue such general orders, directives, and requirements as are necessary to implement and enforce the provisions of this article. The commission may require utilities to file data, reports, plans, or other information as necessary to ensure compliance with this article.

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