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Appalachian Power, Wheeling Power File For Recovery of Increased Fuel, Vegetation Management Costs

May 14, 2024
Appalachian Power and Wheeling Power submitted filings to the Public Service Commission of West Virginia (PSC).

Appalachian Power and Wheeling Power submitted Expanded Net Energy Cost (ENEC) and Vegetation Management Program (VMP) filings to the Public Service Commission of West Virginia (PSC).

The ENEC filing ensures the companies are reimbursed on a dollar-for-dollar basis for coal and natural gas to fuel power plants and for purchased power. The VMP reimburses the companies for right-of-way vegetation management. Both filings are made regularly to ensure the amounts included in rates accurately reflect past and ongoing expenditures to generate and deliver electricity.

In the ENEC filing, the companies propose a $1.9 million decrease in ENEC rates for residential customers and a $22.3 million increase for other customers, totaling $20.4 million, or a 1.13% increase, over total revenues, which include the ENEC under-recovery deferral rate increment of $37.6 million previously approved by the Commission to begin September 1, 2024. The last rate increase associated with ENEC costs was effective in September 2023.

The companies propose to increase VMP rates by $1.2 million, or 0.07%. The previous rate increase associated with VMP costs was effective September 2021.

"While the company has taken steps to minimize increases in our customer rates, we understand any increase can be a challenge," said Aaron Walker, President and COO of Appalachian Power. "These adjustments are necessary to ensure that the amount of money being collected from customers matches the actual costs incurred by the companies."

If the PSC approves the filings, a residential customer using 1,000 kilowatt-hours per month will see a decrease of approximately $0.47 or -0.27 percent effective September 1.

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