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PSC Needs to Navigate Power Plan Cautiously

The West Virginia Public Service Commission has a tough call in the coming weeks when it comes to Appalachian Power’s request to extend the life of three coal-fired power plants.

Appalachian Power and Wheeling Power are now seeking a 3.3% increase for ratepayers — up from the 1.62% approved by the PSC in August — for improvements to the Mitchell Power Plant in Marshall County, the John Amos Power Plant in Putnam County, and the Mountaineer Power Plant in Mason County.

The new rate ask comes after public service commissions in Kentucky and Virginia rejected a plan to have their customers help cover improvements to the power plants.

So what does this mean? To keep these plants operational until 2040, which will allow the company to provide good-paying jobs and hundreds of millions in economic benefit to local communities, West Virginia residents will have to shoulder the entire burden. For most customers, that will come out to about $5-$10 additional per month on their bill.

Utility companies are granted wide latitude in how they pass costs along to customers. With the request, Appalachian Power should answer two questions: With an increased base rate, will the company provide additional subsidies to those residents living on a fixed income?

Also, has Appalachian Power or Wheeling Power looked internally to see where it can gain efficiencies, or is the company simply passing along all of its costs to consumers?

More needs to be learned and considered in the coming weeks. However, this fact remains: locally, the Mitchell Plant is a major economic engine for Marshall County, with annual employee compensation of $65 million. It generates more than 5 million megawatt hours of power and has a direct economic impact of $418 million. Its closure prior to 2040 would deal a massive blow to Marshall County’s economy.

We are not at a place where coal can be taken out of the energy equation. The PSC needs to factor that in its decision.

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