High Cost of CEPP in West Virginia

The Clean Electricity Performance Program Would Cost West Virginia an Additional $34.9 Billion

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West Virginia is a state that has always revolved around energy. It is the fifth-largest energy producing state, generating 5 percent of the total energy in the United States. West Virginia’s abundance of natural resources means many residents have depended on jobs in the energy industry to pay the bills.

In the 1920s, coal employment in West Virginia rose to well over 800,000 jobs. Today, slightly more than 13,000 remain. Central Appalachia, encompassing all of West Virginia, has reduced output from 234 million tons in 2008 to 93 million tons in 2019.

These declines did not happen by accident. Many people believe replacing coal and natural gas-fired power plants with wind turbines and solar panels will spur economic growth and that this transition will be easy to accomplish because wind and solar are “free” electricity sources.

However, these energy sources are not free. Moreover, maintaining a reliable electric grid becomes increasingly difficult — and expensive — as reliance on wind and solar power increases over time.

Proponents of renewable energy mandates routinely ignore the large, up-front capital costs associated with building wind turbines, solar panels, and transmission lines. They also ignore the resulting cost increases in property taxes, utility profits, and load balancing — or providing electricity when the wind is not blowing or the sun is not shining, either with backup natural gas facilities or battery storage. These are all major expenses of maintaining a reliable electric grid with large amounts of wind and solar capacity.

This report accounts for each of these factors, and therefore provides a comprehensive and realistic picture of the cost of providing reliable electricity while implementing the CEPP.

A full copy of the report can be viewed here.