Most states pass laws creating renewable portfolio standards to encourage and subsidize investment in new solar and wind projects.  Two years ago, Gov. Manchin and state legislators passed an "alternative" portfolio standard in WV designed specifically to prevent expansion of renewable energy sources in WV.

The Republicans in the Legislature and US Senate candidate John Raese then had the nerve to claim that the coal friendly law would cause increases in electric rates.

Today, we have a story by Ry Rivard in the Charleston Daily Mail that repeats all of the mythology surrounding Manchin's coal industry law, including claims that the law actually does anything to promote renewable energy in our state and crazy Republican claims that is causes rates to rise.  I don't know if Rivard's original story led with the mythology and then ended with the facts, but his editor used the following misleading "when did you stop beating your wife" headline:  "State law may not result in utility rate increase."

In fact, as APCO's own CEO recently admitted, the only electricity source that is creating rate increases is coal.  All of this coal-fired increase has nothing to do with future regulations that may or may not be put in place to keep coal from killing more Americans.  Expensive coal is causing ALL of the current electric rate increases in WV, but you would never know it from this article.

The truth is that Manchin's law allows AEP and FirstEnergy to generate "alternative" credits that they can use to meet the law's targets from burning gob (euphemistically called "waste coal" in the law), and straight up coal in "advanced" boilers.  Needless to say, Rivard quotes FirstEnergy's representation to the PSC that FE subsidiaries "Mon Power and Potomac Edition anticipate they will generate enough credits based upon currently available resources for the 15-year term that no additional development, purchase or procurement will be necessary,"  Well, of course not.  Many of their coal burning plants will generate credits under the law and FE can just buy back their own credits.  What's the problem?

The facts of the situation only appear at the end of the story:

Manchin expected the Energy Portfolio Act to encourage private investment in wind, solar and other renewable power sources and also spur investment in research on so-called "clean coal" technology.

But the ease with which the companies have been able to comply with West Virginia's law leads one environmental consultant to question its point.

"It says it's a law that is completely useless," said Rory McIlmoil, the project manager at Downstream Strategies, a Morgantown consulting firm that advocates for renewable energy.

For instance, he said many of Allegheny Power's plans to comply with the law relied on things it was already doing.

According to the company's own filing, it's already using enough non-traditional fuels to comply with the law through 2019 with room to spare.

The company is also benefiting from the inclusion of "alternative" energies, which gives companies more leeway to comply with the law. Laws in other states focus on encouraging renewable solar, wind and hydroelectric power generation.

About 30 states have adopted laws designed to change the mix of fuel sources companies use to generate power. But West Virginia is one of a handful of states that also allow "alternative" energy to count as part of the portfolio. "Alternative" energy includes power produced by natural gas, "clean coal,""tire-derived fuel" and "waste coal."

While the company will use existing hydroelectric generation to meet the law's standards, a significant portion of Allegheny's plan to comply with the law comes by way of burning waste coal.

So, as a direct failure of Manchin and the Legislature's coal industry law, WV's real innovators, who have invested in home and business solar and wind systems, are being steadily shut out of other states' renewable energy credit markets with no support from our own state government.

And the cold dead hand of coal tightens its grip around the throats of WV's electricity users.
 


Comments

John Christensen link
07/06/2011 01:57

I loved this article due its simple nature and the fact that never has this information surfaced publicly before now. It doesn't matter that it stinks to high heaven, it is information that has been sorely lacking for years and now its come to light, that's a good thing.

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coalportal link
09/22/2011 23:20

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coalportal link
09/22/2011 23:21

The use of sophisticated software systems for coal mining (thermal coal, steam coal and metallurgical coal) that is mostly burnt for power generation and steel production and adds to the greenhouse effect is valid for western countries who may allocate resources and funds to alternative and more greener sources of power. Some of the alternatives may be "safer" than the traditional mines. Unfortunately, coal reports and coal statistics show developing economies are more likely to increase their use of thermal coal & metallurgical coal in coming years because of its affordability and to meet increasing demands for electricity and steel. Whether they will embrace and utilise sophisticated software systems that no doubt add to the cost of production is yet to be seen. Cherry of www.coalportal.com

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