CHARLESTON, W.Va. — The state Public Service Commission has rejected a request by Appalachian Power Company to cancel a hearing set for next week’s on the utility’s proposal to securitize $2.4 billion in assets to reduce a base rate increase on customers.
In a motion filed earlier this week, Appalachian Power urged the PSC to cancel the July 1 hearing on securitization because the issues were covered in last week’s two-day hearing on the base rate case before the PSC.
The PSC denied the request after hearing from the Office of the Consumer Advocate who said to cancel the hearing would be a denial of due process rights because it wants to cross-examine Appalachian Power witnesses.
“The evidentiary hearing will be held on July 1, 2025, as previously scheduled.” the commission said in Wednesday’s order.
Appalachian Power spokesperson Karen Wissing told MetroNews the company didn’t think the additional hearing was necessary but they’ll be there next week.
“We do believe that all of the necessary information had been provided through the written testimonies and other documents related to the base rate increase but we’re happy to pursue stating our case,” Wissing told MetroNews.
Appalachian Power is seeking a $250.5 million increase in its base rate. If approved, the average customer’s bill would go up more than 13 percent a month which is about $21 more a month. Wissing said being allowed to bond out the $2.4 billion to investors would bring the monthly increase for average customers down to $6 a month.
The bonds would be paid back over 20 years. Wissing said it’s like refinancing your home but with a twist. She said Appalachian Power’s customers won’t pay the full amount.
“It is at a reduced amount because the interest associated with the bonds–we will be pay that versus the customer,” Wissing said. “In the long run, we’ll be passing along savings to the customer.”
In last week’s hearing, expert witness Stephen Baron told PSC Chairman Charlotte Lane not every asset that Appalachian Power wants to securitize should be. He said power plants and storm costs would benefit customers but allowing the fuel costs to be stretched out over 20 years would actually cost customers more than an annual adjustment.
Opponents have told the PSC that even without a base rate increase in the last six years, the utility has been allowed to charge customers more through a number of surcharges and other allowable rate adjustments. Testimony last week said the company has asked for $623 million more from its customers to pay for things like fuel, environmental requirements for its power plants and vegetation removal.
The securitization hearing next week is expected to last just one day. The PSC will make a decision on both cases later this year.
The PSC has also granted intervenor status in the case to the West Virginia Coal Association.