CHARLESTON, W.Va. — The West Virginia Public Service Commission has approved a rate decrease for Appalachian Power Company and Wheeling Power Company customers.
The PSC Friday issued an order reducing the Expanded Net Energy Cost (ENEC) rates for customers by more than $50 million.
The reduction comes as a result of Appalachian Power paying less for the coal it uses in its plants.
In an ENEC case, customer rates are adjusted to reflect only projected changes in the utility’s cost of fuel and purchased power, specified environmental compliance and construction costs, and to true-up recovery of actual ENEC costs for the previous period.
The costs associated with purchasing fuel to generate electricity and purchased power are the largest expenses for an electric utility and make up the largest component of customer rates.
The reductions are effective September 1.