West Virginia Governor Jim Justice (R) vetoed a proposal on Tuesday that aimed to increase the maximum size of a solar plant owned by state utilities. He cited worries about how it might impact the coal industry.
The proposal, HB5528, aimed to enlarge the size of solar plants that the state’s electric utilities, AEP and Mon Power, could possess. It would double the limit from 50 megawatts (MW) to 100, while keeping a total ceiling of 200 MW per utility in place.
In his veto letter, Justice expressed concerns that the proposal could lead to higher expenses for consumers. He said the measure “can only further jeopardize our nation’s energy security and make West Virginians reliant on the national power grid to ensure we have electricity at home.”
“I am concerned that this well-intentioned proposal will further incentivize these companies to move away from coal-generated power and continue to adopt more costly alternatives outside of West Virginia,” he stated.
“The repercussions of such significant and rapid change could result in higher power bills for West Virginians, as these entities seek to pass on their cost increases to consumers. It could also lead to job cuts by causing coal mines and power facilities to close rapidly.”
The sponsors of the proposal have rejected the idea that it would undermine the state’s coal industry. As of late 2023, nearly 12,600 MW of coal capacity remained operational in the state, according to the U.S. Energy Information Administration, while renewables make up less than 5 percent of the state’s electricity generation, mainly coming from hydroelectric power.
Justice, who is running for the Senate seat of retiring Sen. Joe Manchin (D-W.Va.), accumulated much of his wealth in the coal industry, with state financial reports indicating his family holds numerous mining and related businesses among its 112 holdings. Justice placed seven of the companies he owns in a blind trust in 2017.
