We’re going to give Gov. Jim Justice the benefit of the doubt.
For now, our reference here will only be to the appearance of a conflict of interest, not the real deal.
Though it won’t take much to change our minds if future disclosures and headlines warrant returning to this subject.
Last week, Justice called an on-the-double special session of the Legislature to provide tax relief to the Pleasants Power Station to enhance its viability in an imminent power capacity auction next month.
That Legislation — HB 207 — passed by an overwhelming bipartisan majority and only awaits the governor’s signature, which is a cinch.
The appearance of that conflict came into play only after lawmakers approved this bill when it was learned that the power plant’s owner is in an active federal lawsuit with a company owned by the governor.
The plant’s owner claimed in December that Bluestone Energy Sales Corp. owed it $3 million on the final payout of a coal deal.
Everyone in the governor’s office, representatives of his companies and First Energy Solutions — the plant’s owner — all deny there is any connection to this legislation.
There may be no fire here, but there’s enough smoke for anyone to think the Statehouse is burning.
Let’s be clear: Gov. Justice’s companies are known for delinquent taxes, allegedly stiffing vendors, federal lawsuits and federal subpoenas.
It’s also worrisome that HB 207 was first described in a news release around 6 p.m. July 19 and was a done deal by 12:45 p.m. July 23. That’s a $12.5 million tax break in about 90 hours.
As rush jobs go that’s a lot of tax relief to provide one power plant tugging at state government’s heartstrings over 160 jobs and 3.5 million tons of mined state coal so fast.
Justice notes plant officials only contacted him the prior week (so much for their sense of urgency) and he did his due diligence and had revenue officials do the math first.
This is no commentary on whether legislators should have signed off on this bill many call a bailout of a failing industry that supposedly spares jobs and ensures other revenues this facility generates.
But, reputations and the slapdash nature of this legislation aside, Justice and his staff were obligated to disclose that ongoing legal dispute. Perhaps such a disclosure would not have changed the outcome, but it would have changed the outlook on any conflict of interest.
We find it hard to chalk this up to everyone overlooking still another lawsuit against the governor’s businesses, too.
Being transparent about potential conflicts of interest is essential to trust in our leaders. If they have to tell people they can be trusted after the fact, they probably aren’t.
