CHARLESTON, W.Va. — Power rates for customers with Wheeling Power and Appalachian Power will remain the same for two more months this year under a proposed joint stipulation members of the state Public Service Commission are now considering.
During a Thursday hearing held remotely, the PSC heard no objections to the agreement dealing with rates and vegetation management for a time period of ten months from Sept. 1, 2020 to June 30, 2021.
Rate increases had previously been scheduled to start on July 1.
In general, proposed rate increases will add up to $50 million, a lower amount than originally proposed, while a number of other issues have been deferred largely due to the economic effects of the ongoing coronavirus pandemic which have hit full force since initial rate filings.
Heather Osborn with the PSC’s Consumer Advocate Division said the joint stipulation was the result of “lengthy” settlement negotiations.
“We believe in light of the unusual circumstances in which we all find ourselves that it’s certainly a reasonable compromise and that it’s in the best interests of residential ratepayers that the joint stipulation be accepted by the Commission,” Osborn said.
An attorney for the West Virginia Energy Users Group said concessions on all sides were necessary.
“These are tough times, it’s a tough case. We think that this settlement balances the interests between ratepayers and the utilities fairly,” Derrick Williamson said.
“We think the settlement reflects a fair compromise of competing interests, of competing positions of the parties. I think the resulting rates, if approved by the Commission, would be just and reasonable.”
Companies the West Virginia Energy Users Group was representing for the proceedings included The Chemours Company and Constellium Rolled Products.
AARP had previously argued against a specific take effect date for any rate changes due to pandemic uncertainty.
“Clearly the objective is to defer the rate increases until such time as the customers are better able to absorb them,” Gaylene Miller, AARP state director, wrote in a letter.
“The problem AARP sees is that it is not possible to foretell at this time how serious the pandemic and associated economic circumstances will be even by Sept. 1 of this year.”
Miller said any rate increases should be suspended until “the health of the economy and the customers is strong enough to sustain added costs.”
Issues with technology slowed down the Thursday start of the PSC meeting which covered portions of rates for Appalachian Power and Wheeling Power along with vegetation management plans for both companies.
At the end of the hearing, Charlotte Lane, PSC chair, said an order would be issued by June 30.