Appalachian Power (APCo) and Wheeling Power have received an order in their recent base case from the Public Service Commission of West Virginia (PSC) that indicates a desire to support the company’s securitization plans to mitigate the impacts of this rate increase on customers. The PSC’s decision directly recognizes the benefits of the company’s proposed securitization plan.
“We’re pleased that the PSC saw the advantages for our customers in our securitization plan,” said Aaron Walker, Appalachian Power president and chief operating officer. “However, we are disappointed that the PSC didn’t recognize the full investment made on the system on behalf of our customers.”
Although the order recognizes the need for a base rate increase of $76.1 million, customer rates will stay the same for now. The PSC will soon make a final decision on securitization, a proposal that aims to ease the impact of the base rate increase by spreading out the cost recovery over a longer period.
The order provides additional support for customer assistance programs and extends the eligibility window for certain assistance programs. Additionally, it adopts proposed net metering changes to ensure fairness for customers who install their own generation equipment.
At the PSC’s direction, APCo will conduct a study to determine the feasibility of a summer rate plan for residential customers.
About Appalachian Power:
Appalachian Power has 1.1 million customers in Virginia, West Virginia and Tennessee (as AEP Appalachian Power). It is part of American Electric Power (Nasdaq: AEP), whose nearly 16,000 employees operate and maintain the nation’s largest electric transmission system and more than 225,000 miles of distribution lines to deliver safe, reliable power to 5.6 million customers in 11 states. AEP is also one of the nation’s largest electricity producers with approximately 30,000 megawatts of diverse generating capacity.
