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Appalachian Power has recently filed a rate increase request with the West Virginia Public Service Commission (PSC), a move that, if approved, could significantly impact homeowners' utility bills. The company is seeking an annual revenue increase of $265 million, which translates to an average monthly increase of $28.72 for residential customers. Commercial property owners could see a $60.41 hike, while industrial property owners might face an astonishing $34,321 increase.

The Reasons Behind the Rate Increase Request

According to Appalachian Power, several factors have contributed to the need for a rate increase:

1. Increased Labor Costs: Rising wages and benefits for employees.
2. Higher Interest Rates: Increased borrowing costs for capital investments.
3. Inflation: General price increases affecting all sectors.

Additionally, the company aims to cover $118 million accrued from storm damage recovery since 2019 and to recoup over $1 billion spent on investments in generating plants, the regional transmission system, and distribution facilities.

The Impact on Homeowners

The proposed rate hike has not been well received by many homeowners, who are already struggling with tight budgets. WOWK spoke with Bryan Smith, a St. Albans resident, expressed his frustration, stating:

"The audacity for them to ask for another cent from anybody. You’re either going to sit in the dark or you going to go buy stuff, now what’s it going to be? I don’t know about you, but I’m not going to melt, I’m not going to freeze to death in there and I’m not going to be in the dark. This isn’t Little House On the Prairie."

Where Would the Money Go?

If the rate increase is approved, Appalachian Power says the additional funds will be used for essential upgrades and maintenance of their generation, transmission, and distribution networks. These improvements are deemed necessary to minimize outages, accommodate growing energy demands, and integrate new energy sources.

It's worth noting that this would be Appalachian Power's first full base rate increase since 2018. However, there have been surcharges since then to cover costs related to vegetation management and environmental compliance.

Public Outcry and Official Response

The proposed increase has sparked significant public outcry, with many arguing that it is unjustified given the financial success of Appalachian Power's parent company, A.E.P. Kanawha County Commissioner Ben Salango voiced his concerns:

"People are already operating on a tight budget, this is going to be really hard for them to come up with another $30 to $35 dollars a month just because Appalachian Power thinks it needs a rate increase. A.E.P., its parent company, had $25 billion in profit over the last 24 months. I don’t think they need the rate increase."

What's Next?

The PSC has up to 300 days to approve or reject the rate increase request. During this period, public hearings and discussions will likely be held to gather input from affected stakeholders.

Conclusion

As the debate over Appalachian Power's rate increase request unfolds, homeowners and business owners alike are encouraged to stay informed and participate in the public discourse. The decision made by the PSC will have lasting implications for utility costs and the financial health of households across West Virginia.