CHARLESTON, W.Va. –The state Public Service wants to hear more from the utilities doing work in West Virginia on their plans for the money they saved with federal tax reform signed into law last year.
The PSC issued an order this week calling for a three-day evidentiary hearing set for July 24-26 at PSC headquarters in Charleston. The hearing will start at 9 a.m. each day.
According to the PSC order, “At that time, utilities and other parties may present their calculations and positions regarding ratemaking treatment and timing for changes in revenue requirements attributable to the 2017 Tax Act.”
The PSC is currently reviewing the testimony from the utilities filed at the end of May in connection with a January order.
Appalachian Power Company told MetroNews last month it saved $235 million in connection with the Tax Act and planned to pass the money back to its customers in a variety of ways.
“It is customer money. What we propose to do is provide a method to keep rates as stable as possible over the long-term and as much as possible eliminate the need for rate increases,” communications director Jeri Matheney said.
Appalachian Power plans to take $131 million of the $235 million to completely offset the company’s fuel and vegetation control program funding request that was part of an April filing with the PSC.
The company also plans to use the money to reduce next year’s fuel recovery cost rate case, fund a pilot economic development grant program and $30.1 million to return to customers over the next three years.
Another large West Virginia utility, West Virginia American Water Company, indicated in its filing it will save $11.4 million a year. The savings is also indicated in the company’s latest rate case filing.
“We will work with the Public Service Commission and other stakeholders to address the 2017 Tax Act’s impact on customer rates,” WVAWC spokesperson Laura Martin previously told MetroNews.