Customers depend on Appalachian Power and Wheeling Power (the Companies) to deliver the energy needed to power their lives. The Companies’ rate review application, filed today with the West Virginia Public Service Commission (PSC), would provide resources necessary to enhance reliability, support upgrades to their generation plants and promote economic growth.
As the Companies have worked to deliver safe and reliable power, their day-to-day operations are impacted by inflation, rising interest rates and higher maintenance costs.
“As we navigate the challenges of increasing energy costs, we are committed to providing safe, reliable and affordable electricity,” said Aaron Walker, Appalachian Power president and chief operating officer. “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 allow the PSC to examine the Companies’ financial and operational performance and any request to modify base rates for service. The PSC conducted its last review of the Companies’ rates and earnings in 2018. In the filing made today, the Companies requested to increase annual revenues by approximately $265.1 million, or 15.4 percent.
Since the last rate review, Appalachian Power and Wheeling Power Companies have invested over a billion dollars in generation facilities, the regional transmission system and distribution facilities. These investments and enhancements would be recovered through this rate review. The request includes 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.
“Upgrading and maintaining our generation, transmission and distribution network is essential for minimizing outages and accommodating energy demands and requirements,” Walker said. “These investments help ensure a resilient power grid that supports our customers’ current and future needs.”
Appalachian Power and Wheeling Power have approximately 460,000 customers in West Virginia. The proposed increase will vary depending on customer class and usage. If approved as requested, a residential customer using 1,200 kilowatt hours (kWh) a month will see a net increase in their monthly bill of approximately $28.72.