West Virginia PSC approves settlement in Appalachian Power and Wheeling Power ENEC case
The West Virginia Public Service Commission approved a settlement agreement on Thursday to increase customer rates, allowing Appalachian Power and Wheeling Power to recover construction costs over the next two years.
“All the parties to this case – the PSC staff, the Consumer Advocate Division and the West Virginia Energy Users Group – worked very hard to reach a compromise that would minimize the impact on customers and still allow the company to recover its costs,” Appalachian Power President and COO Charles Patton said.
The Expanded Net Energy Cost (ENEC) case will increase the customer price per kilowatt-hour (kWh) from $0.11 per kWh to $0.12 per kWh for West Virginia ratepayers. The increase for business customers will vary. The rate increase is still below the national average cost per kWh, which is 12.26 cents.
The increase will allow the utilities to recoup investments made in new transmissions facilities and energy capabilities. The utilities recently converted the Clinch River Plant to run on natural gas instead of coal, among other technology advancements. Such investments will be recovered through the ENEC, and the initial price increase will go into effect this month.
The increase is expected to generate $55 million in additional revenue. The utilities agreed not to file additional ENECs prior to April 2018. As a result, customer rates will remain unchanged through July 2018.
