REAL: West Virginia Should Embrace a Solution That Protects Ratepayers
BYOP policy would allow large energy users to procure their own electricity, reducing pressure for utilities to build expensive new power plants funded by customers
ARLINGTON, VA (September 9, 2026) — During peak summer months, West Virginia families and businesses have been hit with electricity price increases that they are now discovering in their bills. Utility companies are also starting to propose building new, costly power plants –– that ratepayers will have to pay for –– to meet the growing demand for electricity. The Retail Energy Advancement League (REAL) is urging policymakers to pursue a proven policy solution that can protect ratepayers from bearing the growing cost of new utility-owned power plants.
Customers of both Appalachian Power and Mon Power/Potomac Edison are seeing higher costs on their monthly bills.
At the same time, Mon Power and Potomac Edison are now seeking approval to construct a $2.48 billion, 1,200-megawatt natural gas power plant and three solar projects –– costs that would ultimately be recovered from customers. This surcharge would later transition into cost recovery fees for any overages or costs for owning and operating the facility –– more costs passed onto consumers.
A recent report from the Cardinal Institute for West Virginia Policy and R Street revealed the need for an energy solution as West Virginia families are paying a larger share of their income for electricity than residents of any neighboring state.
REAL supports a Buy Your Own Power (BYOP) policy that was introduced by Sen. Patricia Rucker and Del. Tristan Leavitt during the 2026 legislative session. This policy –– named the Energy Freedom & Fairness Act –– would allow qualifying commercial and industrial energy users to procure their electricity directly from competitive suppliers, limiting the need for utilities to build and bill ratepayers for the cost to build generation to meet all future demand. This is a targeted approach to reduce the amount of new generation built by utilities and paid for by ratepayers. It does not restructure or deregulate the market.
The benefits of a BYOP policy are:
West Virginia’s strategy to reach 50 gigawatts of capacity power by 2050 requires about 34 more gigawatts of power resources to be constructed. The $2.48 billion proposal for new generation proposed by Mon Power and Potomac Edison will only result in about 1.2 gigawatts of capacity generation. For that trend of new utility-built power generation to continue and meet the 50 gigawatt goal, it will cost ratepayers tens of billions of dollars.
