West Virginia Certified Microgrid Development Program

Requirements for District Certification

A microgrid must be located within a certified microgrid district. Certification requires a showing of the following:

• Economic Impact: The project will have a significant and positive economic impact on the state.
• Business Attraction: It is necessary to attract at least two businesses to locate or expand in West Virginia.
• Size Constraints: The district must comprise a nearly contiguous area not exceeding 2,250 acres.
• Power Usage: Electricity generated must be used within the district or delivered to the wholesale market.
• Data Center Focus: Greater than 70% of the electricity generated within the district must be consumed by one or more high-impact data centers.

Operations within a Microgrid District

Entities generating electricity within a certified district benefit from several regulatory exemptions and face specific limitations:

• Regulatory Exemptions: Generators can qualify as exempt wholesale generators under federal law without being subject to the Public Service Commission’s (PSC) siting certificate requirements.
• PSC Jurisdiction: These entities are not subject to PSC jurisdiction regarding rates, certificates of convenience and necessity, conditions of service, or customer complaints.
• Standards: They are not subject to state net metering and interconnection standards.
• Relocation Prohibitions: Microgrids may not provide service to encourage businesses already receiving utility service in the state to relocate to the district.
• Wholesale Limit: No more than 10% of the electricity generated within the district may be delivered to the wholesale market.

Electrical Infrastructure Costs

• Connection: Eligible facilities are not required to connect with or use any public electric utility.
• Cost Responsibility: Regulated electric utility customers cannot bear any costs associated with the microgrid’s generation, transmission, or distribution facilities.
• Funding: All costs must be borne by the generator or the consumers within the microgrid district.

Application Process: Letter of Intent

To become certified, an entity must submit a Letter of Intent to the Secretary of the Department of Commerce. This letter is confidential and exempt from Freedom of Information Act (FOIA) disclosure. The letter must identify:

• Size, scope, and nature of target customers.
• Approximate proposed acreage and location.
• Estimated capital investment and evidence of financial capacity.
• Project timeline, milestones, and completion date.
• Estimated generation capacity and internal power loading.
• Backup power needs from local utilities and estimated power for the wholesale market.
• Types or sources of each electric power generation unit.

Negotiation Requirements

At least 120 days before submitting a Letter of Intent, applicants must make good-faith efforts to negotiate electricity supply from the local utility and provide documentation of these efforts.

Exemptions to the negotiation requirement:

• Districts proposing to produce 300 megawatts or more.
• Districts that will not be connected to the local utility in any way after construction is complete.