CHARLESTON, W.Va. — AARP West Virginia is asking the state Public Service Commission to consider the impact of proposed utility rate increases in light of savings from last year’s Tax Cuts and Jobs Act.
The letter, published Wednesday, comes a week before the Public Safety Commission is set to hold hearings regarding proposed rate increases from Appalachian Power and West Virginia American Water Company, despite millions of dollars in savings from the tax law.
The organization is urging the commission to change how it considers rate collections, proposing changing it from the base of the previous 35 percent corporate tax to the current rate of 21 percent.
“Ratepayers need relief, especially those on low income, fixed income and otherwise vulnerable households. It is essential that the benefits of the Tax Act flow promptly to residential ratepayers,” AARP West Virginia State Director Gaylene Miller said.
Appalachian Power is requesting an average 11 percent rate increase despite saving $235 million from the new tax law. West Virginia American Water proposed an increase of 24 percent following saving $11.4 million under the new tax law.
Miller said most utilities nationwide have already passed their tax savings to consumers, and the same should be done in West Virginia.
“It is not sufficient, nor is it fair, that the utilities would merely attempt to withhold the tax savings from residential customers and to claim, inappropriately, that they are using the funds to reduce rate hikes that also are unnecessary or are exorbitant,” she said. “Such tactics are anti-consumer and inappropriate.”
The commission hearings begin July 24.