Energy

This bill directs West Virginia's Office of Energy to develop a comprehensive energy policy and plan covering coal, natural gas, nuclear, renewable, hydrogen, and geothermal sources. It transfers the Office of Coalfield Community Development into the Office of Energy, eliminates outdated duties like the annual coalfield report, and grants the Office new authority to hold stakeholder meetings, set energy-ready community criteria, and designate project sites. The legislation also repeals the 2023 Coal Fired Grid Stabilization Act, merging its provisions into a new "Comprehensive Grid Stabilization and Energy Security Act." The Office must submit annual reports on its findings and develop strategies for multiple energy sectors, including state energy security planning. This restructures state energy policy to embrace diverse energy sources while focusing on stability, cost, and security.

This bill reduces the severance tax rate on metallurgical coal produced in West Virginia, affecting coal mining companies that extract this type of coal. The new rates will take effect in stages starting July 1, 2026, lowering the tax from 5% to 4.5% for the first year, then to 4% the following year, and finally to 3.5% beginning July 1, 2028. Metallurgical coal is defined as coal used for making steel and other metals, distinct from thermal coal used for electricity generation. The tax reduction applies to the gross value of coal produced and includes additional local taxes that are normally part of the total severance tax.

HB 4026 requires West Virginia electric utilities to include detailed analyses of advanced transmission technologies in their integrated resource plans filed with the Public Service Commission. This affects all utilities operating in the state that submit these plans, including major providers like American Electric Power and Dominion Energy. The bill mandates comprehensive assessments of technologies such as advanced conductors, dynamic line rating, and power flow controls, covering their economic feasibility, technical viability, potential benefits, and deployment schedules. These analyses must address how such technologies improve grid efficiency, reliability, and safety for customers. The requirement applies to all new or updated resource plans filed after July 1, 2026.

HB 5648 updates West Virginia's electrical power regulations to prioritize consumer interests and modernize utility oversight. It requires utilities to notify customers before rate increases and hold public hearings for significant rate changes affecting large customer groups. The bill exempts small portable solar devices from connection agreements, allows customers to generate and store power through distributed programs, and mandates utilities to track customers dependent on life support systems. Additionally, it sets new rules for disconnecting service due to non-payment and requires utilities to develop community energy programs under a subscriber model.