By Nadia Ramlagan
The Public Service Commission of West Virginia is facing legal challenges for its 2021 directive that Appalachian Power increase the usage of three of its coal plants.
Critics say the utility is paying more to keep coal plants open, and passing the cost onto residents and businesses – now burdened with higher energy bills.
The lawsuit argues that the mandate oversteps federal rules and undermines safeguards put into place to protect the public from unfair rate increases – according to Jim Kotcon, chair of the West Virginia Sierra Club.
“Sixty nine percent is a much higher rate than these coal-fired power plants have operated at in the past,” said Kotcon, “and by directing the plants to operate at that level, it forces the utility to sell electricity into the grid at a price below their cost of operating.”
According to the Sierra Club, rates have jumped by an average of 20% since the directive went into effect in 2021, resulting in significantly higher electricity bills.
The Commission argues the directive is aimed at meeting an increased demand for energy.
Research shows West Virginians’ average monthly residential energy bills have more than doubled over the past decade, from about $67 to $142 per month.
Bruce Perrone is a retiree in Kanawha County who said older and low-income residents, and those living on fixed incomes, will bear the burden of higher energy bills.
He added that state regulators are tasked with ensuring that power companies charge reasonable rates.
“My problem with this whole scheme is telling them to run their coal-fired businesses at levels where they’re going to lose money is just a means to support the coal industry,” said Perrone. “It is not helping consumers.”
Last month, Appalachian Power filed another rate increase request with the Commission, seeking to raise its annual revenue by $265 million.