CHARLESTON, W.Va. — Appalachian Power and Wheeling Power are seeking a 15.4% rate increase from the state Public Service Commission.
If approved, the increase would bring in $265 million from the utilities’ 460,000 customers in West Virginia. The average residential customer would see their monthly rates increase by $28.72.
According to the companies, the rate increase would improve reliability, pay for upgrades at their generation plants and promote economic development.
Appalachian Power President and Chief Operating Officer Aaron Walker said the company has been impacted by the current economy including inflation, rising interest rates and increased costs associated with maintenance.
“As we navigate the challenges of increasing energy costs, we are committed to providing safe, reliable and affordable electricity,” Walker said. “We fully recognize the financial impact of rate increases on our customers and pledge to begin working immediately with stakeholders for solutions to mitigate the impact.”
Appalachian Power said it hasn’t had a base rate increase since 2018 and since then it’s invested more than $1 billion in its system.
The utilities said the base rate increase would allow them to recover $118 million in major storm costs from the last five years. The costs would be recovered over a three-year period.
“Upgrading and maintaining our generation, transmission and distribution network is essential for minimizing outages and accommodating energy demands and requirements,” Walker said in Friday’s news release. “These investments help ensure a resilient power grid that supports our customers’ current and future needs.”
Appalachian Power and Wheeling Power have been granted other increases over the past several years that also make up the overall bills of their customers including the Expanded Net Energy Cost (ENEC) the Vegetation Management Program (VMP), which are directly linked to costs.
Average monthly increases by class of customer if full rate hike is approved:
Residential 17.61% $28.72
Commercial 14.53% $60.41
Industrial 13.6% $34, 321
Other 12.76% $1.39
The state PSC has 300 days to make a decision on the filing.