CHARLESTON, W.Va. — Appalachian Power is responding to an appeal filed in connection with a recent rate increase approved for the utility by the state Public Service Commission.
The PSC proposed a $40 million inflationary rate increase for Appalachian Power in exchange for the company withdrawing a proposed base rate increase. The PSC said it would allow the inflationary increase if the company held off on a base rate case for another year.
Beckley-based attorney Stephen New filed an appeal on behalf of customers last week.
The appeal called what the PSC did an “experimental inflation-based” rate adjustment was made without adequate findings or evidence showing the resulting rates are “just and reasonable” as required by West Virginia law.”
Appalachian Power shot back in a Tuesday afternoon news release. APCo President and COO Brian Abraham said the inflationary rate is better for customers.
“We know a lot of our customers are already under real financial pressure, and we understand how important it is to keep monthly bills as manageable as possible,” Abraham said. “That is why this outcome matters. It helps us continue making the investments needed to keep power reliable while avoiding a much larger increase that would have been even harder on the families and businesses we serve.”
Abraham said the increase gives customers a more predictable rate.
“That kind of stability can make a real difference for people who are trying to manage their household or business budgets, and this appeal threatens that stability,” he said.
Appalachian Power spokesperson George Porter told MetroNews last week the move will mediate “rate fatigue.” He said customers get frustrated with many different rate increases. Rather than the company continuing to go to the PSC for approval on individual rising costs, this move wrapped several base-rate requests into one.
“Being able to roll all of this into one and not have any other base-case files until after June of next year, it’s a benefit for our customers,” Porter explained. “Also, we’re able to get a little revenue requirement to help us continue to invest in our power grid. For us, we feel like it’s a win.”
The inflation rate hike results in about $4.84 more a month per 1,000 kilowatts used, Porter said. The more energy a customer uses, the higher their electric bill will be. For example, he said, if a customer uses 2,000 kilowatts in a month, the increase would be around $10.
New filed his appeal with the state Intermediate Court of Appeals but the ICA automatically dismissed the case because the jurisdiction for PSC appeals is with the state Supreme Court. New has yet to refile the case with the Supreme Court.