CHARLESTON, W.Va. - Consumer groups say an Appalachian Power plan to buy chunks of two big generating stations does more for Appalachian's parent company than for West Virginia ratepayers. The utility wants to buy additional generating capacity from the John Amos and Mitchell power plants, taking it off the hands of another subsidiary of American Electric Power and charging the cost to ratepayers here.

According to Byron Harris, director of the Public Service Commission's Consumer Advocate Division, the utility only needs half of what it wants to buy. He said ratepayers would lose a big rate reduction they should be getting.

"Acquiring these plants is going to increase their rates higher than what they otherwise would be, by at least $100 million per year," he said.

The company contends it's facing a big shortfall in generating capacity. Harris said the sale would lock ratepayers in at a time when electricity generated from coal is facing an uncertain future, including changing coal prices and competition from cheap natural gas.

"It's a billion-dollar asset transfer," he said. "That will be there forever and ever amen. It severely reduces your flexibility."

Harris said Appalachian has known about the coming shortfall for three years, but waited until the last moment to force the PSC to accept the proposal.

Cathy Kunkel, policy analyst at Energy Efficient West Virginia, said the company has admitted the sale is intended to help AEP reorganize its generating capacity. She said the company initially wanted to shift more of the Mitchell plant to Appalachian, until the AEP subsidiary in Kentucky decided to take on part of Mitchell.

"Because of some events in Kentucky, suddenly we're asked to acquire fifty percent of the Mitchell plant instead of eighty percent," she said. "It has nothing to do with the actual needs of the West Virginia utility, which haven't changed."

Appalachian Power serves about half of West Virginia. Similar deals in the other half of the state and in Kentucky could mean ratepayers there would also end up paying for shares of big coal-fired power stations.

The PSC will hear case number 12-1655 Tuesday through Thursday, but the decision may be some months later.




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One of New York State's first energy storage deadlines is fast approaching.

A roadmap established earlier this year sets a state goal of developing 6 gigawatts of energy storage but the Climate Leadership and Community Protection Act calls for 1,500 megawatts of energy storage by next year. So far, the state has more than 387 megawatts.

Kyle Rabin, large-scale renewables policy analyst at the Alliance for Clean Energy New York, said attitudes about the projects prevent more from moving ahead.

"While we see communities in other states embracing energy storage, we see that some communities across New York State have opposed these projects due to the lack of information about how this technology works, or disinformation that has spread online," Rabin observed.

Some misinformation equates energy storage with fires involving e-bike batteries, though Rabin pointed out energy storage has stricter safety regulations. He added people do not always understand the benefits of energy storage, like redistributing captured renewable energy back to the grid when it is needed. It can also aid public health and increase grid stability.

This year saw the lowest energy storage capacity installed, which could be a setback for New York's many goals. However, capacity is still increasing, and Rabin emphasized bringing more of the projects online increases regional economic benefits.

"Communities across the nation are building the batteries that are powering our electric grid, and we could do the same here in New York State," Rabin contended. "That's part of the reason New York State is pursuing this technology is, it's about complementing renewables and helping to bolster renewable energy."

Earlier this year, Governor Kathy Hochul invested more than $11.5 million in the state's clean energy workforce. The state's Energy Research and Development Authority is also putting resources into developing an energy storage workforce. As of 2023, close to 3,000 people work in energy storage and grid modernization.

Minnesota's clean energy goals are among the more ambitious in the U.S. But industry experts say it can't slow down on the innovation side to see what works and what doesn't.

The future of a program for start-ups hangs in the balance. In 2023, the state Legislature approved $3 million for the Energy Alley initiative.

It's a public-private partnership that connects clean energy entrepreneurs to industry giants and research institutions looking for innovative approaches to decarbonizing the region.

Nina Axelson is the founder of Grid Catalyst, one of the key partners for this effort. She said they're seeing promising returns so far, providing this example.

"NeoCharge, which is a company out of California," said Axelson, "they have software for optimizing your electric vehicle charging, and they're doing a pilot with the University of St. Thomas."

By successfully demonstrating their technology through Minnesota's program, NeoCharge was recognized by the U.S. Energy Department in a separate prize-money pool.

However, funding for Minnesota's Energy Alley was just a one-time expense, and advocates hope for another round this coming session.

But with the state facing projected deficits in a couple years, they're expecting a cautious spending approach.

Clean Energy Economy Minnesota also helps guide Energy Alley.

The organization's Executive Director Gregg Mast said keeping this program alive means the state will continue to be a testing ground for emerging technologies to aid the transition away from fossil fuels.

"We don't want game changing energy talent and ideas leaving our state," said Mast, "and investing in Minnesota Energy Alley is an important signal to our startups that they're supported, welcomed, and encouraged to grow right here in Minnesota."

Grid Catalyst says without that state support, there's a slower process in seeing ideas come to life.

Program backers point to Minnesota's longstanding Medical Alley - and its role in putting the state on the map for healthcare innovation - as proof these investments will pay off.

Initially, some lawmakers questioned whether the energy projects will lead to local manufacturing.

One of the program's participants, Flow Environmental Systems, plans to start producing its specialized heat pumps in Minnesota in 2026.

New York lawmakers are focusing on electrifying municipal buildings.

Buildings statewide make up 32% of New York's greenhouse gas emissions and experts said electrifying them would lower heating and cooling costs, as well as reducing emissions. Inflation Reduction Act funds are available for municipalities to convert public buildings to use electricity.

Marian Brown, elected official fellow for Elected Officials to Protect America, said there is one challenge worrying elected leaders.

"One of the biggest challenges right now, and we were hearing this from folks, is uncertainty over the durability of Inflation Reduction Act funding, the IRA, with a new federal administration that's already signaling that it's not supportive of clean energy technologies," Brown explained.

President-elect Donald Trump has said he will repeal the Inflation Reduction Act but it comes with significant trade-offs. Research shows it could terminate many manufacturing jobs and cost America a chance at energy independence. Reports find conservative states are seeing the greatest benefits from Inflation Reduction Act investments.

The 2023 All-Electric Buildings Act will help get more buildings electrified by banning fossil-fuel systems in new buildings. All-electric cooking and heating will be required for new buildings under seven stories by 2026 and by 2029 for taller buildings.

Dominic Frongillo, cofounder and executive director of Elected Officials to Protect America, said the legislation comes with many benefits.

"We need to make sure we have the cleanest, most efficient, most modern technology that can protect the public health and improve indoor air quality, and make sure that we're keeping our dollars locally in our communities and our pockets," Frongillo outlined. "We need to build on that policy that New York State has passed."

The state's Building Code Council is deciding whether to include the All-Electric Buildings Act in its 2025 code update. Another bill establishing the Green Affordable Pre-Electrification Fund could help with the effort. It would allocate funds for buildings deemed unfit for weatherization and electrification, removing a major barrier to existing programs.