West Virginia Public Service Commission dismisses Appalachian Power rate increase
Sep. 20—charleston — A rate increase Appalachian Power Company and Wheeling Power Company filed for in early August has been dismissed by the Public Service Commission of West Virginia due to the applications filed by the companies being incomplete.
The power companies were seeking a 15.4% increase, which would impact 460,921 customers in counties including Fayette, Greenbrier, McDowell, Mercer, Monroe, Raleigh, Summers and Wyoming. The companies requested an effective date of Sept. 1 this year, according to the commission's order.
Residential bills would have increased by around $28 a month if the rate increase had been approved.
Officials with the power companies said when the application was filed last August that their " day-to-day operations are impacted by inflation, rising interest rates and higher maintenance costs."
Since the last rate review, Appalachian Power and Wheeling Power Companies had invested over a billion dollars in generation facilities, the regional transmission system and distribution facilities, according to company officials. These investments and enhancements would be recovered through the rate review. The request included recovery of approximately $118 million for major storm costs incurred since 2019. If approved as requested, the storm costs would be recovered over a three-year period.
"As we navigate the challenges of increasing energy costs, we are committed to providing safe, reliable and affordable electricity," Aaron Walker, Appalachian Power president and chief operating officer, said when the application was filed. "We fully recognize the financial impact of rate increases on our customers and pledge to begin working immediately with stakeholders for solutions to mitigate the impact."
Rate review applications allowed the state Public Service Commission to examine the companies' financial and operational performance and any request to modify base rates for service, according to company officials. The state Public Service Commission conducted its last review of the companies' rates and earnings in 2018. In the filing made in August, the companies requested to increase annual revenues by around $265.1 million or 15.4%.
The state Public Service Commission conducted a hearing Wednesday in Charleston about the companies' request for a rate increase and decided not to grant it.
"The commission determines that the tariff filing is incomplete and dismisses this case," according to the order filed after Wednesday's hearing. "The commission provides guidance regarding a future tariff filing and potential reconsideration."
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