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WHEELING -- Appalachian Power customers' bills could see a 6% increase if the company's request to the West Virginia Public Service Commission goes through.
Appalachian Power and Wheeling Power announced Monday that it has filed to the PSC requests to increase the amount of money collected for Expanded Net Energy Costs and its Vegetation Management Program. The ENEC reimburses the company for coal and natural gas to fuel power plants and for purchased power. The VMP reimburses the company for vegetation management in rights of way.
The company is requesting an increase in its ENEC collection of $73 million, and a continuation of current VMP rates to take effect Sept. 1. It also requested a $5 million increase in rates to recover the approved cost of its energy efficiency and demand response programs. That would take effect in January 2022.
If approved as proposed, residential customer rates would go up 6%. That's a monthly increase of $8.10 for customers using 1,000 kilowatt hours and $16.20 for customers using 2,000 kilowatt hours.
Appalachian Power President and COO Chris Beam said the ENEC amount is mostly for funds already spent and not recovered last year when financial impacts of the COVID-19 pandemic on customers were at their worst.
"The pandemic has been difficult, and that's why we suspended disconnects for non-payment for most of 2020 and made it easier to get payment arrangements," Beam said.
Beam added that Appalachian Power also used $12.7 million of Fresh Start tax savings toward erasing the debt of residential customers with past due amounts of more than 90 days and credited $7.4 million received from the State of West Virginia CARES program to eligible residential customers.
The company will continue seeking ways to help customers struggling financially from the pandemic, Beam said, yet the ENEC and VMP amounts included in rates ultimately must reflect actual costs.