Senate Bill No. 469
(By Senators Helmick, Ross, Fanning, Anderson, Bailey, Chafin,
Schoonover, Love, Ball, Hunter and Minear)
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[Introduced February 11, 1998; referred to
the Committee on Energy, Industry and Mining.]
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A BILL to amend the code of West Virginia, one thousand nine
hundred thirty-one, as amended, by adding thereto a new
chapter, designated chapter five-h, relating to procurement
of electric power by the state.
Be it enacted by the Legislature of West Virginia:
That the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended by adding thereto a new
chapter, designated chapter five-h, to read as follows:
CHAPTER 5H. PROCUREMENT OF ELECTRIC POWER
BY THE STATE AND ITS SUBDIVISIONS.
ARTICLE 1. PROCUREMENT OF ELECTRIC POWER.
§5H-1-1. Declaration of legislative policy.
The Legislature hereby declares it to be the policy of the state and its political subdivisions to procure electric power
from an existing inactive power plant located on county route
50/1 known as cemetery road near Bayard, Grant County, West
Virginia.
§5H-1-2. Legislative findings.
(a) A power plant located on county route 50/1 known as
cemetery road near Bayard, Grant County, West Virginia, commonly
known as the north branch power plant, owned by the Virginia
electric power company, is currently inactive due to the
overcapacity condition of its parent company.
(b) The general area surrounding Bayard, Grant County, West
Virginia, is an economically depressed area.
(c) The north branch power plant previously employed up to
sixty-five persons in salaried positions and indirectly generated
up to fifty employment positions for miners, truck drivers,
limestone quarry workers and water suppliers.
(d) The north branch power plant previously expended
approximately ten million dollars annually for salaries, parts
and contractors.
(e) The north branch power plant is state-of-the-art regarding
air emissions in an area in which West Virginia currently has a
serious problem.
(f) The north branch power plant would burn West Virginia waste coal, reducing further stockpiling.
(g) The ash by-product of this plant would be beneficial for
the reclamation of mining areas.
(h) The north branch power plant can utilize as a percentage
of its fuel waste tires and waste waxed cardboard boxes which are
now a landfill environmental concern in West Virginia.
(i) When restarted, the north branch power plant will provide
tax benefits to Grant County and to the state.
(j) By purchasing electric power from north branch power
plant, the state will derive substantial financial benefits.
(k) The cost savings to the state in procurement of electric
power pursuant to this chapter will be five hundred thousand
dollars annually.
§5H-1-3. State procurement of power from currently inactive
plant; terms of procurement; terms of employment; sources of
fuel; facilitation of transactions; bonds; sunset provision.
(a) Beginning on the first day of July, one thousand nine
hundred ninety-eight, and continuing for a period of five years
thereafter, the state and its political subdivisions shall
purchase the entire electric power output of the plant commonly
known as the north branch power plant located on county route
50/1 known as cemetery road near Bayard, Grant County, West
Virginia, up to eighty megawatts.
(b) The north branch power plant shall employ more than fifty
full-time employees at higher than average wages and shall
provide benefits including medical.
(c) Ninety percent of the north branch power plant's employees
shall be residents of West Virginia.
(d) The north branch power plant shall burn waste coal fuel,
all of which shall originate in West Virginia.
(e) The north branch power plant shall use limestone, all of
which shall originate in West Virginia.
(f) The north branch power plant may utilize as a percentage
of its fuel waste tires and waste waxed cardboard boxes.
(g) In order to obtain maximum benefit to the state, the state
shall facilitate transactions between the present owner, Virginia
electric power company, the lease operator, the utility owner of
transmission lines and the present supplier of energy.
(h) The state or the local government entities shall provide
to the operator any necessary bonds for the installation of any
equipment required for processing waste tires or waste waxed
cardboard boxes as fuel.
(i) If the north branch power company does not begin full
operation by the thirtieth day of June, one thousand nine hundred
ninety-nine, this chapter shall become null and void.
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(NOTE: The purpose of this bill is to require the state to
purchase electric power from an existing inactive plant located
in a distressed area and to promote environmental safeguards.
Chapter five-h is new; therefore, strike-through and
underscoring have been omitted.)
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FINANCE COMMITTEE AMENDMENTS
On page __, section two, line__, by striking out the words
"cost savings to the state in";
On page __, section two, lines __ and __, by striking out the
words "be five hundred thousand dollars annually" and inserting
in lieu thereof the words "may result in a cost savings to the
state";
And,
On page __, section two, lines __ through __ by striking out
all of subsection (h) and relettering the remainder of the
subsection.
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ENERGY, INDUSTRY AND MINING COMMITTEE AMENDMENT
On page one, by striking out the title and substituting
therefor a new title, to read as follows:
Eng. Senate Bill No. 469--A Bill to amend the code of West
Virginia, one thousand nine hundred thirty-one, as amended, by
adding thereto a new chapter, designated chapter five-h, relating
to procurement of electric power by the state from an existing
inactive power plant near Bayard, Grant County, West Virginia;
declaring legislative policy and legislative findings;
establishing terms of such procurement of electricity; requiring
above average wages, resident employees, the use of certain fuels
and the purchase by the state of all output up to eighty
megawatts; and providing a date before which all operations must
begin.