Mon Power, Potomac Edison request rate review by West Virginia PSC
Mon Power and Potomac Edison, both of which are subsidiaries of FirstEnergy Corp, are requesting a review of their base electric rates by the West Virginia Public Service Commission (PSC).
The proposed $207 million adjustment supports investments to strengthen the energy grid, fund reliability programs targeting rural communities, and establish a team to support low-income customers. Further, it seeks to recover costs associated with storm repairs, including multiple storms in December, depreciation changes for Mon Power’s West Virginia generating plants and higher operating and maintenance costs associated with inflation.
“While strict cost management and careful planning have allowed us to keep our West Virginia electric rates the lowest among the state’s investor-owned electric companies, an adjustment is required to keep pace with rising prices and allow us to continue making critical electric system enhancements,” Jim Myers, president of FirstEnergy’s West Virginia operations, said. “Our proposal supports ongoing preventative maintenance and equipment enhancements that would reinforce the grid against progressively stronger storms.”
If approved, the average Mon Power or Potomac Edison residential customer using 1,000 kilowatt hours per month would see a 15 percent overall rate increase, which comes out to $18.07 per month. However, even with the increase, customers would continue to pay the lowest electric rates among West Virginia’s investor-owned regulated electric companies.
As mentioned, the proposed rate review supports investments in the generation, transmission and distribution system, storm restoration work and a bill assistance initiative. It would also support investments the companies have made to help create a more reliable and resilient electric system, including installation of new automated technology.
It has been nine years since the last rate review for Mon Power and Potomac Edison. The companies have grown significantly since then as they now serve approximately 550,000 customers in West Virginia – 25,000 more than it did in 2014. Further, the companies have collectively invested more than $1 billion to improve and maintain the distribution, transmission, and generation systems since the last rate review.
The requested rate reviews are subject to PSC review. Any approved increase in rates would not become effective until March 2024. The public is invited to comment on the filing through the West Virginia PSC’s public comment process.
