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Focusing on the Electric Grid

Although West Virginians may sometimes feel isolated, there are many factors outside our state that affect us. During the recent conference of the Southern Governors’ Association in West Virginia, eight governors from very diverse states talked about an event elsewhere in the country that has the potential to touch our lives. This summer, a power outage in Ohio spread east and north, and in just a few seconds, affected the power of nearly 50 million people. The event, apparently caused by years of neglect of the power grid, brought to the country’s attention the need for energy regulation. But the southern governors are concerned that Congress may go too far in an attempt to control the situation and force states that do not have a problem to pay for the solution.

According to an article in a National Conference of State Legislatures publication, the United States has 158,000 miles of primary electric transmission lines. Our country’s power delivery system is a complex network of a massive scale. As we learned in August, one glitch can throw a wrench into the entire system. Meanwhile, the Federal Regulatory Commission estimates that the demand for electricity in our nation will increase by 20 percent during the next 10 years, while investments may only increase by 6 percent.

The governors noted that many northern and western states chose not to dam streams for hydroelectric power or utilize coal-fired or nuclear power plants and instead rely on the electrical power grid. They discussed the need for federal reliability standards for the electrical grid, but the governors agreed that the Federal Energy Regulatory Commission should not be given too much authority to enforce those standards. Specifically, the governors questioned whether the regulatory commission should be able to dictate transmission line construction or electricity rates, essentially creating one nationwide energy grid.

A major point noted during the Southern Governors’ Association meeting was that southern states are often able to attract businesses with their low energy costs. If the federal government requires states such as West Virginia to subsidize improvements in other states, the southern states could be forced to raise rates and lose that competitive edge. Southern states have worked for years to create an energy system that can handle production for all residences and businesses. Now the governors fear they’ll be penalized for other states’ inaction.

The governors also protested the suggestion that the federal government be given the power of eminent domain when running power lines through states. They agreed they need to join together to ensure that the federal government does not force them into a standardized energy system.

Meanwhile, there are interesting energy-generating projects going on in our own region. In an earlier column, I talked about the Bluestone Hydroelectric Power Project, which will provide a hydroelectric power source in this area. Last week, the Beckley Register-Herald reported that the West Virginia Development Office has dedicated $3 million toward the construction of an electric power plant in Greenbrier County that will burn coal refuse. The low-cost power will circulate in an “eco-park” for businesses, and hot water and steam will also be used by greenhouses, fish farms and lumber kilns.

The plant, to be built on a 26-acre site at Rainelle, will burn coal refuse from a gob pile located in Anjean. By eliminating the 40-acre gob pile, the state will save approximately $220,000 a year in acid mine drainage control costs.

With $107.5 million from the U.S. Department of Energy, the project holds the potential to created as many as 1,000 local jobs. The group planning the project is seeking another $2 million in “bridge” financing to pay for engineering design and construction permits.

It is an encouraging development for Southern West Virginia. As our state continues to sponsor responsible energy-generating projects, the Legislature and Gov. Wise will have to keep a watchful eye on any action Congress plans which could restrict states.

I welcome and appreciate your input on these issues, or any other legislative matter. Please call me at (304)340-3106 or write to Delegate Virginia Mahan, 215-E, Capitol Complex, Charleston, WV 25305