Jan. 10—The Public Service Commission of West Virginia on Tuesday denied $231.8 million sought by Appalachian Power Company and Wheeling Power Company for past fuel costs, but allowed $321.1 million to be recovered over a decade at $32.1 million a year.
This decision faulted the companies for "unreasonable and imprudent management," according to a press release from the state Public Service Commission (PSC).
The result of the decision will cost the average ratepayer using 1,000 kilowatts of power per month an additional $2.50 monthly for 10 years. Customers will not begin paying the new rates until Sept. 1, 2024. The rates include a 4 percent annual "carrying charge," according to the PSC.
In a 37-page decision, the PSC rejected a proposed company settlement filed Dec. 27, 2023.
It would have imposed a long-range securitization bond system on ratepayers that the commission said would have cost customers $2.9 billion over the 20-year life of the bonds. That proposal would have cost customers $3.17 a month for 20 years.
Appalachian Power and Wheeling Power petitioned the PSC on April 28, 2023, for a review of their fuel costs in an Expanded Net Energy Cost case.
The companies asked for $552.9 million in under-recovered costs as of Feb. 28, 2023, and $88.8 million for the forecast period of Sept. 1, 2023 through Aug. 31, 2024, according to PSC officials.
The decision said the companies "did not prudently maintain adequate fuel supplies and manage operations of their coal-fired plants" to provide a hedge they promised against "volatile energy costs," according to PSC.
In the decision, PSC officials also said that excessive costs incurred by the companies' actions "should not be shouldered entirely by customers."
More information on these cases can be found on the PSC website: www.psc.state.wv.us by accessing Case Nos. 21-0339-E-ENEC, 22-0393-E-ENEC and 23-0377-E-ENEC.
— Contact Greg Jordan at gjordan@bdtonline.com
Contact Greg Jordan at gjordan@bdtonline.com