PSC approves portion of APCo, WPCo base rate request, securitization, and closes case on Optimum
By RealWV Staff,
CHARLESTON, WV – On August 28, the Public Service Commission of West Virginia (PSC) denied the bulk of a $250.5 million base rate increase sought by Appalachian Power and Wheeling Power companies, but did grant a base rate increase of $76.1 million.
A press release provided by the PSC states that despite the rate increase, consumers will not see an increase in their monthly power bills, adding that the PSC order “requires that the current rates remain unchanged pending future refinancing of a significant portion of the companies’ investment in generation plans and deferred expenses.”
A separate press release from Appalachian Power Company states:
“The order provides additional support for customer assistance programs and extends the eligibility window for certain assistance programs. Additionally, it adopts proposed net metering changes to ensure fairness for customers who install their own generation equipment. At the PSC’s direction, APCo will conduct a study to determine the feasibility of a summer rate plan for residential customers.”
Securitization Plans
On September 2, Appalachian Power Company issued a press release stating that the PSC had approved the companies’ plans for securitization, or the selling of consumer rate relief bonds, in order to recover $2.4 billion in expenses and investments.
The PSC decision on securitization was made possible through legislation passed in 2023 called the Utility Consumer Rate Relief Bonds Act of 2023, which authorized the PSC “consider and authorize the recovery of certain costs by certain utilities through the issuance of consumer rate relief bonds.”
“When we originally filed our case in 2024, we were focused on finding innovative ways to reduce the financial burden on our customers,” Aaron Walker, Appalachian Power president and chief operating officer was quoted in the press release. “We are pleased that the PSC agreed with our recommendation and saw the benefit of securitization to provide some relief to our customers.”
The PSC’s order allows APCo to consolidate under-recovered balances from several pending cases, including expanded net energy costs (ENEC) and deferred storm costs from major storms such as Hurricane Helene.
The order also allows for the securitization of the company’s West Virginia share of the undepreciated plant balances of Amos, Mountaineer and Mitchell power plants and approximately $236.7 million in costs associated with meeting U.S. Environmental Protection Agency rules on Coal Combustion Residual and Effluent Limitation Guidelines.
The securitization process involves issuing public bonds and will take several months to complete, according to the press release from Appalachian Power. Once securitization bonds are issued, there are several rate changes that will take effect, which will lead to a decrease in overall rates.
Optimum case closed
On September 3, the PSC closed one of its highest profile cases when it announced completion of its actions into Suddenlink Communications, which is now Optimum Communications.
The investigation into the company’s service began in 2021.
The Commission agreed in a 12-page order to close the case after finding the company “satisfied the service-related requirements set forth in the three-year improvement plan imposed by the Commission’s Orders.”
But it added: “The Commission, consistent with its statutory charge, will continue to ensure that Optimum provides safe, adequate and reliable service.”
