CHARLESTON, W.Va. — The opposition is already starting to mount against a $265 million rate increase proposed by Appalachian Power and Wheeling Power.
Both an advocacy group and the Kanawha County Commission commented on the proposal Monday.
The power companies filed the request with the state Public Service Commission to raise their base rate for power. The utilities are seeking an increase of 15.4%. If approved, it would increase the average residential bill in by $28.72 a month.
Power company officials said they haven’t had a base rate hike since 2018 and in that time have invested $1 billion into their system to generate and deliver electricity.
Although they haven’t had a base rate increase, there have been a myriad of other increases the company has sought and been granted including a recent $88 million fuel case that raised rates by 5% last fall.
Energy Efficient West Virginia spokesman Emmett Pepper said to the average ratepayer what particular part of the power bill goes up doesn’t make a lot of difference.
“There’s been a lot of rate increases over the past 15 years, but there have been multiple cases since 2018 where rates have gone up,” Pepper explained. “We’re very concerned about the impact of this for rate payers.”
Pepper, who called the request alarming, said he and his organization will push back against the proposal. Pepper said base rate cases are much more complicated and involve much more time to try and combat.
The Kanawha County Commission said the proposed increase is staggering.
“Inflation continues to impact Kanawha Countians daily, from prices at the grocery store, at the gas pump and on their utility bills. The WV PSC needs to put citizens’ best interests first and deny this rate hike,” Commission President Lance Wheeler said.
Commissioner Ben Salango said, “Another day, another rate hike request. This is completely out of control and simply not sustainable. The Public Service Commission needs to deny these outrageous and exorbitant rate hikes by Appalachian Power and other utility companies.”
Commissioner Marc Slotnick added, “Our citizens should not be forced to choose between paying their high utility bills over other essential needs. The PSC should deny this extreme rate hike request.”
Along with another potential cost increase in household budgets month to month, Pepper and his organization are equally worried about a part of the request which isn’t getting as much attention. According to Pepper, the request would make it harder for people to break away from the grid and create their own solar generation facility.
“It would make it very difficult for people to cost effectively to take care of energy bills through solar. Not only does it increase rates, but it makes it very hard to do anything about it on your own,” he said.
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.”
The state PSC has 300 days to make a decision on the request.