CHARLESTON, W.Va. — The state Public Service Commission will hear Wednesday the terms of a settlement with Appalachian Power Company.
The utility, along with Wheeling Power, filed a settlement agreement Tuesday seeking approval for new customers rates, which would result in a $44 million revenue increase.
The new rates will affect customers differently; residential customers using 1,000 kilowatt-hours a month will see an increase of $5.38, while those using 2,000 kWh will see a reduction of $1.37 in their statements.
“We’ve done some things with this proposed settlement agreement that will help customers who are all-electric,” said Jeri Matheney, the communications director for Appalachian Power.
“What we find is customers who have electric heat use a lot more electricity. Those customers with higher usage will see little or no increase, sometimes even a decrease with this rate plan.”
According to Matheney, the agreement uses funds from the Tax Cuts and Jobs Act to lessen the impact on customers. Appalachian Power saved $235 million from the federal law.
“All customers use the electric grid,” she said. “It really is more expensive to use power if you have a lower use because you are still using the same amount of the grid. The same amount of the wires and poles are allotted to you whether you use electricity or not.”
Matheney also said this also benefits low-income customers, who tend to have inefficient heat and use more electricity.
Commission staff, the state Consumer Advocate Division, the West Virginia Energy Users Group and other groups cooperated in reaching an agreement on the terms.
The utility is also agreeing to work with the state Department of Commerce to create an economic development program funded by customer fees and company contributions.
In addition, the deal states Appalachian Power will not file a base rate case before April 2020.