The state Public Service Commission has granted two Longview Power subsidiaries an extension on the timeline to start and complete construction of a combined-cycle gas-fired power plant adjacent to the Longview coal-fired plant.

Mountain State Clean Energy and Mountain State Renewables (originally Longview Power II and Longview Renewable Power) filed for the extension on Oct. 9. They have until April 3, 2029, to start construction and April 3, 2034, to complete the job.

In April 2020, the PSC granted Longview Power a citing certificate for then-Longview Power II to build a 1,200 mega-watt combined-cycle gas-fired power plant (a combined-cycle plant generates power with
a gas turbine, and uses waste heat from the turbine to produce steam to generate more power in a steam turbine). Longview Renewable planned a 70 MW solar facility, with 20 MW of that to be located at the
Longview site and the other 50 MW in Pennsylvania.

The PSC gave the companies five years to start construction and 10 years to begin operation. Construction was to start by April 3 this year, and the citing certificate was set to expire April 3, 2025.

So in October the two companies asked the PSC for four-year extensions to start and complete construction. The companies cited several reasons for the delays: volatile energy prices; equipment procurement and supply chain issues combined with ongoing inflation; and uncertainty about environmental regulations for gas-fired projects that have complicated construction financing.

But now, they said, “Fortunately, capacity pricing in PJM has recovered, providing a ‘build signal’ for new power generation projects. As a result, investor interest in new ‘ready to build’ generation is rising as rapid data center buildout and increased electrification across the economy is significantly increasing
electricity demand.”

The four-year extension, they said, would facilitate arranging financing and procuring construction and other contracts. They point out that the PSC has previously granted similar extensions to other projects.
The Sierra Club West Virginia Chapter filed an objection to the extension on Oct. 31. It said the companies provided no evidence to support their request or to overcome the fact that no progress
has been made to date. “We are concerned that MSCE is merely chasing the various tax credits as
part of their development and financing goals, but does not have an economically competitive case to
make sure that their project will ever pay off in a free market.” PSC staff on Nov. 6 recommended that the PSC approve the companies’ request, noting but not commenting on the Sierra Club objection.
In its order, PSC also noted the Sierra Club objection but said the matter was fully litigated and
resolved back in 2020, Sierra Club participated in the process, and nothing has changed since.
“The commission appreciates that a ready-to-build project should be valuable to potential investors and the state and local economy,” it said.

“We will, therefore, grant the requested extension to provide the Companies additional time to gather
investors and build these projects.” The PSC order grants the same extensions for the solar plant, though
the companies do not discuss that plant in their request.