The West Virginia Public Service Commission has decided to postpone the proposed rate increase by Appalachian Power until next year.
In a recent request to the PSC, Appalachian Power proposed a 17 percent rise in base rates, which would translate to an estimated $28 per month increase for the average residential electricity consumer.
On Thursday, the PSC decided to suspend any changes in rates until May 2025 in order to conduct a more thorough examination of the company’s application.
The PSC has not approved a base rate increase for Appalachian Power since 2019. However, it has given the green light for smaller increases in expenses such as environmental compliance surcharges and fuel costs. As a result, both residential and industrial users have experienced a rise in the price of power.
The PSC case docket has received a significant number of public comments expressing opposition to the proposed rate increase. Furthermore, various community groups have organized a protest scheduled for Thursday in Charleston, specifically targeting Appalachian Power’s office.
The commission recently heard testimony in a separate case that may result in an additional $2 being added to monthly bills. Furthermore, starting from September 1, other increases will be implemented, increasing monthly bills by approximately $5.
According to Karen Wissing, a spokesperson for Appalachian Power, the company was expecting the Public Service Commission (PSC) to suspend the proposed rate increase.
During the recent fuel cost case, an Appalachian Power witness revealed that the company occasionally operated its three coal plants at a loss in order to effectively manage its coal inventories.
According to an energy analyst, the plants incurred a loss of $87 million during a 12-month period. However, the company witness stated that the decision to shut down the plants was primarily motivated by concerns for worker safety.