Current Legislation

In 2026, the West Virginia State Legislature passed HB 5381, which encoded the governor’s plan to increase West Virginia’s electricity generation capacity from 16 to 50 GW by 2050. The law includes provisions to increase the demand for natural gas produced in West Virginia. The law also addresses the need for pipeline and transmission infrastructure to deliver the gas to power plants and the electricity to customers. Natural gas was also designated as critical energy infrastructure, and the Office of Energy was directed to identify and list designated sites for natural gas electric generation projects.

HB 2014 was passed by the West Virginia State Legislature in 2025. The law encourages the construction of gas-fired electricity generation capacity to power data center microgrids in West Virginia. SB 505, passed in 2025, requires the Public Service Commission to set electricity rates based in part on reliability scores provided by PJM for coal (84%), natural gas (62-79%), wind (35%), and solar (14%). Both major electric utilities with operations in West Virginia (FirstEnergy and AEP) opposed the bill on the grounds that it would disincentive construction of new electric plants including gas-fired power plants. Natural gas was likely given a lower score due to the difficulty of storing extra natural gas on-site in the event of a supply interruption. 

Policy Options

In Texas, lawmakers created the Texas Energy Fund in 2025, approving more than $7 billion in low interest loans specifically for gas-fired power plant construction. In West Virginia, lawmakers could consider a similar loan program as part of a push to increase overall electricity generation capacity. Opposition to new energy projects often stems from a desire to avoid passing the costs of construction to consumers, which a state-supported energy fund could lessen or avoid.

In Ohio, lawmakers lowered the tangible personal property tax assessment rate for new, converted, or repowered electric generation equipment. A similar policy could support new gas-fired electric generation in West Virginia because coal-fired power plants are increasingly being converted to run on natural gas nationwide, although none have been converted in West Virginia. This would likely face opposition from environmental and coal industry-aligned groups, as natural gas could replace at least some of the current coal fired power plants via conversion. 

On the other hand, the 2020 Virginia Clean Economy Act of 2020 mandated that Virginia’s two major utilities produce energy from 100% renewable sources by 2050. This may cause issues with expanding West Virginia’s gas-fired electric generation capacity if other states enact similar legislation discouraging the purchase of electricity generated by nonrenewable sources, as 40% of electricity generated in West Virginia in 2025 was exported to other states.