CHARLESTON, WV (WOAY) – Appalachian Power, along with Wheeling Power, today filed a settlement agreement seeking the Public Service Commission of West Virginia’s approval for new customer rates. The agreement provides for an overall 3 percent or $44 million revenue increase.
Today’s agreement, if approved by the PSC, would settle a request originally filed on May 9 and would be effective March 6, 2019.
The increase varies depending on customer class and usage. Residential customers using 1,000 kilowatt hours (kWh) a month will see a $5.38 increase in their monthly bill and customers using 2,000 kWh a month will see a $1.37 reduction in their monthly bill. Today’s agreement continues the residential winter rate discount that was part of the Tax Cuts and Jobs Act of 2017 settlement.
The agreement uses funds from federal tax reform to lessen the impact on customers. The PSC Staff, Consumer Advocate Division, WV Energy Users Group, Kroger, Walmart and other parties worked together on terms of the agreement and signed off on it as a fair settlement for customers.
To encourage economic development, the company will work with the W.Va. Dept. of Commerce to create an economic development program funded by a combination of customer fees and matching company contributions.
“Strengthening the economy in the state is a key priority for our West Virginia customers,” said Chris Beam, Appalachian Power president and COO. “Changing our rate structure and setting aside a budget specifically to promote development are two ways we’re supporting the growth of the state. We see economic development as a key to the success of West Virginia and of Appalachian Power.”
Finally, the agreement mandates that the company will not file a base rate case before April 1, 2020.