BECKLEY, W.Va. — Dispute over an Appalachian Power inflationary rate increase set to begin June 1 has taken a legal turn.
Beckley-based attorney Stephen New filed an appeal on behalf of ApCo customers over a $40 million increase approved by the state Public Service Commission. The PSC gave its assent to the increase provided that Appalachian Power would hold off on filing another base rate proposal until after June 2027.
Appalachian Power representatives have said the rate hike will raise customer bills by $4.84 per 1,000 kilowatts used.
New told MetroNews he filed the appeal into the state Supreme Court on Monday, the last day of the 30-day appeal period. New initially put the appeal into the Intermediate Court of Appeals, but the ICA immediately dismissed the case — the PSC is the Supreme Court’s jurisdiction.
New said there was a statewide “clamoring” for legal action to be taken against Appalachian Power’s rate increase.
“I have been contacted by well over a thousand West Virginians from all 55 counties who just cannot live with their current utility rates,” New said.
Appalachian Power President Brian Abraham said there’s no truth to New’s claims during an appearance on MetroNews “Talkline” Wednesday.
“Just a base allegation. They didn’t provide anything to substantiate it,” Abraham said. “They weren’t involved in the process at all, they didn’t appear at all before the PSC, didn’t take part in the case, didn’t make any objections there. [New] just filed this at the eleventh hour, I think really just to grab attention, to be quite honest.”
New maintained the importance of the appeal. He said he’s noticed elevated electric bills at his house and his firm’s building.
“It’s the right thing to do, most importantly,” New said. “Utility rates have risen by 53 percent in West Virginia the past 10 years. That also coincides with about the time the legislature decided to take a more hands-off approach to the regulation of public utilities. Our utility bills are the highest in the nation, and that’s the reason why.”
Abraham was named president of the company March 17. He said that everyone at Appalachian Power cares about customers and is mindful of affordability issues in the current landscape. He said the appeal came in “last minute” and New doesn’t recognize what the ApCo-PSC move is trying to accomplish. Abraham noted that FirstEnergy appears to have made a similar offer to the PSC as well.
He said while most of the base rate work with PSC predated his time at ApCo, he recognized there was a lot of effort put in.
“There were thousands of man-hours that went into the presentation and preparation of this case, as there is every year when utilities come in and ask for a rate,” Abraham explained. “Going back and looking at what was done, I think PSC really put a lot of thought into this, in coming up with this methodology. I believe they were allowed to do it under the existing law, so I’m kind of perplexed as to why this appeal was filed.”
For now, the base rate hike will take effect June 1. New said his legal team asked the state Supreme Court and the PSC to “stay” any rate hikes, asking those groups to stop the increases. Barring a court order or PSC action, New explained, the hike will remain as scheduled.
New and Abraham shared opposing views about the validity of the increase.
New said West Virginia law requires rate increases to be “fair and reasonable.” He noted that is not the case, based on his review of information related to the hike.
“There is no evidence to support why PSC rubber-stamped this rate increase,” New said. “There are just too many things about the PSC deliberations, about the testimony of the utility, there’s no evidence, though, as required by law for why yet another rate increase would be necessary.”
Abraham said ApCo is working to avoid rate spikes — where rates go up by double digits — and that this overall two percent increase is “way less” than the current inflationary rate. Without the PSC’s work, he said, the hike would have likely been higher.
“[To] try to smooth out the increases on the customers. In other words, give them a break,” Abraham detailed. “That was by looking at these periodic adjustments that occur more frequently, based on the current inflationary rate. It was a novel approach, and certainly something they were able to do.”
Customers expect reliable service, Abraham said, and that requires investment.
“Not enough money just comes from the revenue generated from you paying your light bill, and me paying my light bill, to give people the improved reliability that they want,” Abraham said. “So, investors make their money by giving us equity to invest and make our products better here.”
The timeline for legal proceedings is still up in the air, New said. He is pushing for the state Supreme Court to hear his case in the Spring 2026 term, but he noted that may be an ambitious goal.
If the High Court won’t hear New’s case until Fall 2026, New said he will present his case to the PSC. He said that could take place this summer.
“I think this is an important issue for people, businesses, and the governmental entities of the state of West Virginia. I’m looking forward to litigating this case.”