Appalachian and Wheeling Power seeking rate increases

WEST VIRGINIA (LOOTPRESS) – Customers who receive power from Appalachian Power and Wheeling Power companies may see their bills increase if the West Virginia PSC approves a rate increase.

The Companies submitted a rate review application today to the West Virginia Public Service Commission (PSC) that aims to secure resources for enhancing reliability, upgrading generation plants, and fostering economic growth.

While the Companies strive to deliver safe and dependable power, their operations face challenges from inflation, rising interest rates, and increased maintenance costs.

“As we manage the difficulties of rising energy costs, we are dedicated to delivering safe, reliable, and affordable electricity,” stated Aaron Walker, president and chief operating officer of Appalachian Power. “We understand the financial burden that rate increases can impose on our customers and are committed to collaborating with stakeholders to find solutions that lessen this impact.”

Rate review applications enable the PSC to assess the Companies’ financial and operational performance along with any requests to adjust base service rates. The last review of the Companies’ rates and earnings took place in 2018. In today’s filing, the Companies are seeking to raise annual revenues by approximately $265.1 million, or 15.4 percent.

Since the previous rate review, Appalachian Power and Wheeling Power have invested over a billion dollars in generation facilities, the regional transmission system, and distribution infrastructure. These investments and improvements are intended to be recouped through this rate review, which includes a request for about $118 million to cover major storm-related costs incurred since 2019.

If approved, these storm costs would be recovered over a three-year timeframe.

“Upgrading and maintaining our generation, transmission, and distribution network is crucial for reducing outages and meeting energy demands,” Walker noted. “These investments help create a resilient power grid that caters to our customers’ current and future needs.”

Appalachian Power and Wheeling Power serve around 460,000 customers in West Virginia. The proposed rate increase will differ based on customer class and usage.

If the request is approved, a residential customer consuming 1,000 kilowatt hours (kWh) per month could see an approximate net increase of $28.72 in their monthly bill.

The average monthly bill for the various classes of customers would be changed as follows under the proposed rates:

Increases by Class

Any increase to the Companies’ rates will not be put into effect until approved by the PSC, which can take up to 300 days to render a decision.