Hearings Set on Wheeling Power, Appalachian Power Rate Increase Request
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CHARLESTON -- Representatives of Appalachian Power and Wheeling Power will have to defend their request for another rate increase, with the public being able to provide direct input.
In a press release Thursday, the West Virginia Public Service Commission scheduled a public hearing and evidentiary hearing for Tuesday, June 17, for the $250.5 million rate increase requested in November by Appalachian Power and Wheeling Power, both subsidiaries of Columbus-based American Electric Power.
The evidentiary hearing will take place the morning of June 17 at 9 a.m. at the PSC headquarter at 201 Brooks St. in downtown Charleston, with three days set aside for the evidentiary hearing. The public hearing will also take place at the PSC headquarters the afternoon of June 17 at 5:30 p.m. The public can also participate in the public hearing virtually by contacting the PSC.
The companies requested the $250.5 million base case revenue increase, or a 14.6% increase over its total current revenues. The rates were meant to go into effect on Dec. 1, but the request remains on pause pending the investigation by the PSC. According to the companies' filing, a residential customer using 1,000 kilowatt hours of electricity would experience a monthly increase over current rates of $23.74 or 13.5%.
In March, Appalachian Power and Wheeling Power filed an application with the PSC to securitize certain assets in order to reduce the effect of the rate increase request on residential customers from a $23.74 monthly increase to a $6.72 increase.
"When we filed our case in 2024, we committed to finding solutions to lessen the rate impact on our customers as we invest in our system to improve the quality of service we provide," said Aaron Walker, president and COO of Appalachian Power, in a March 13 statement. "Today, we are taking a major step that could reduce customer impacts by nearly 73%."
"We understand that affordability is important to our customers, and we are working hard to find creative solutions that allow us to invest in improving the reliability of our service while minimizing the costs to our customers," said John Scalzo, vice president of regulatory and finance.
The PSC rejected a multi-million-dollar rate increase on customers by Appalachian Power and Wheeling Power last September, citing incomplete information.
The companies filed revised tariff sheets with the PSC on Aug. 2, 2024, that would have increased electric rates and charges by $265.1 million per year, or a 15.4% increase over current rates. The tariffs would have affected more than 460,000 customers in 24 counties in West Virginia. Appalachian Power/Wheeling Power had requested a Sept. 1, 2024, effective date for the new tariffs.
In its order, the PSC determined that the tariff filing by Appalachian Power and Wheeling Power was incomplete and dismissed the case, though they did leave open the door for a re-filing of the tariff and is open to reconsidering the request.