Storm Also a Reminder of Opportunity

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Ice and snow frustrate us. Storms cause problems. They send people scrambling to grocery stores, make travel dangerous, and force changes to plans. In short, winter weather messes with our lives. No denying that fact.

But sometimes, it comes with an unexpected upside.

West Virginia is an energy state. In recent months, three new natural gas power plants have been announced. Those investments promise more reliable and affordable electricity, on top of what the state already produces from its existing generation fleet.

And here’s the key point: small as we are, West Virginia often produces more electricity than it needs. Sometimes even in high-demand situations.

When temperatures drop, demand for electricity rises. And that increase can actually benefit West Virginians.

Consider this: as of 3 p.m. Sunday afternoon, West Virginia was exporting nearly 2,700 megawatts of electricity to other load-serving entities — utilities and generation providers — within PJM. Put simply, the state’s power plants (mostly regulated) had enough power to meet in-state demand and could sell the excess into the regional market.

Click to View: PJM State Import / Export Map

Those exports generate revenue – profits that largely and ultimately flow back to West Virginia ratepayers, helping offset costs when utilities need to buy power from the grid.

Yes, it can get complicated and markets aren’t absent nuance. But this is one of the reasons West Virginia participates in a regional market like PJM, rather than operating a stand-alone system like Texas does with ERCOT. The next time someone suggests to you we should be like Texas, smile and walk away. That would be a huge mistake.

Participation in a wholesale market gives the state flexibility – the ability to both buy and sell electricity. And as more power plants come online here, PJM participation provides a ready pathway for megawatts made in West Virginia to reach broader markets. Minus a market, we can’t get our product to the point of sale.

Looking ahead, electricity demand is only going to grow – driven by artificial intelligence, data centers, and other energy-intensive uses we may not yet fully understand or even have imagined.

Expanding the state’s supply of both merchant and regulated generation allows West Virginia to do what it has long done best: extract resources responsibly, create megawatts, and sell power all in a transparent market with clear market rules and guidelines.

That means jobs. A broader tax base. And more opportunity than we have today.

So while the ice, snow, and cold may be disrupting your day, they also offer a reminder of the opportunity West Virginia holds as an energy exporter — an opportunity worth understanding and one we should continue to pursue. It’s our best opportunity moving forward. One we should be proud of.

Stay safe out there!

 

Editor’s Note: For the latest PJM Generation fuel mix statistics, click here

As of 6 p.m. Sunday, January 25:

  • Natural gas fueled 39 percent of generation
  • Nuclear fueled 26 percent of generation
  • Coal fueled 21 percent of generation
  • Renewables fueled 7 percent of generation
  • Oil and other resources fueled 7 percent of generation





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