Appalachian Power, Wheeling Power file settlement agreement in fuel, vegetation management cases
Appalachian Power and Wheeling Power filed a settlement agreement Monday seeking Public Service Commission of West Virginia (PSC) approval in Expanded Net Energy Cost (ENEC) and Vegetation Management Program (VMP) cases.
If the agreement is approved, savings from the Tax Cuts and Jobs Act of 2017 will offset $110 million in fuel and vegetation management costs, enabling those rates to remain stable for the next two years. Under the agreement, the ENEC and vegetation management portions of rates will not change until at least June 30, 2020.
Upon PSC approval, rates will shift slightly between rate classes and changes will go into effect Sept. 1.
The PSC Staff, Consumer Advocate Division, WV Energy Users Group and Steel of West Virginia worked together on the terms of the agreement.
“The parties to this case worked very hard to reach a solution that would benefit customers and still allow the company to recover its costs,” Appalachian Power President and chief operating officer (COO) Chris Beam said. “Rates in West Virginia have not changed since July 2016, and we appreciate the effort on behalf of customers in this case to continue to keep rates stable.”
The ENEC reimburses the company for fuel and purchased power and does not include profit for the company. The VMP reimburses the company for right-of-way trimming and treating.
The PSC is considering in a separate case how all regulated utilities in West Virginia should deal with federal tax reform. The commission is expected to rule in that case later this year.
