MORGANTOWN – In April 2020, the Public Service Commission granted Longview Power a citing certificate to build a 1,200-megawatt gas-fired power plant adjacent to its existing coal-fired plant. The PSC gave Longview five years to start construction and 10 years to begin operation.
Those deadlines expire April 3, 2025. So, this week, Longview’s daughter companies asked the PSC for four-year extensions for both: April 3, 2029, to start construction; April 3, 2030, to start operation.
The companies spell out the reasons for the delays and for restarting, and asks for expedited consideration, with an order issued no later than Nov. 20 this year.
Back in 2020, Longview Power II planned to build the 1,200 MW plant (their website says 1,270 MW while the PSC filing says 1,200 MW) powered by two high-efficiency, low-heat-rate gas turbines, occupying about 54 acres of reclaimed mine land north of and adjacent to the existing plant. The project also included a 500-kilovolt transmission line.
A companion 70 MW solar plant was also planned by Longview Renewable Power but also never begun; it is not discussed in this new filing.
In 2021, Longview Power II changed its name to Mountain State Clean Energy (MSCE) and Longview Renewable Power changed its name to Mountain State Renewables; they use the new names in this filing.
The companies cite several reasons for the delays. One is weak capacity prices volatile energy prices following COVID and the ensuing economic recovery and the Ukraine war that brought instability and uncertainty to large energy infrastructure investments.
Another was equipment procurement and supply chain issues combined with ongoing inflation. And a third was uncertainty about environmental regulations for gas-fired projects that have complicated construction financing.
But now, they say, “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.”
So the MSCE project presents “an attractive opportunity” when compared projects in less advanced stages.
The companies say they expect no changes in project design, components or construction.
The four-year extension, they say, would facilitate arranging financing and procuring construction and other contracts. The point out that the PSC has previously granted similar extensions to other projects.
Longview refers to the three projects combined – coal, gas and solar – as the Longview Power Clean Energy Center. Back in 2020, the companies estimated the gas-fired plant would cost $925 million to build. Neither the Longview website nor the filing provide a revised figure.
Email: dbeard@dominionpost.com
