Appalachian Power, Wheeling Power seek higher environmental compliance surcharge rates

Published on October 25, 2023 by Chris Galford

© Shutterstock

After initial approval from the Public Service Commission of West Virginia (PSC) in 2021, Appalachian Power and Wheeling Power last week filed to officially update their current rates under the environmental compliance surcharge (ECS), bringing higher bills to customers.

ECS costs stem from the burdens of meeting U.S. Environmental Protection Agency (EPA) rules on coal combustion residuals (CCR) and effluent limitation guidelines (ELG). In this case, Appalachian and Wheeling proposed a $37.2 million rate to address equipment upgrades – a figure that would add $2.84 to the monthly bill of the average residential customer. That 1.68 percent increase was based on a customer using 1,000 kW hours.

“This investment in environmental equipment will keep our Amos, Mountaineer and Mitchell plants in compliance with current EPA regulations through 2040,” Aaron Walker, Appalachian Power president and COO, said. “We are on track to meet project cost estimates, as well as the EPA timeline requirements for placing the equipment in operation.”

Appalachian Power, a subsidiary of American Electric Power (AEP), earlier this year won an $88.8 million fuel cost increase from the PSC as well, to cover through Aug. 31, 2024.