By Charles Owens, Bluefield Daily Telegraph
BLUEFIELD, W.Va. — When the new year arrives, Appalachian Power customers in West Virginia may see a higher bill. However any changes in customers’ bills should be minimal, the company said Wednesday.
Appalachian Power, along with Wheeling Power, filed a settlement agreement Wednesday with the West Virginia Public Service Commission that addresses the companies’ Expanded Net Energy Cost (ENEC) case.
The ENEC is the mechanism used by the commission for adjusting the amount included in rates for fuel and purchased power by public utilities such as Appalachian Power.
In its original filing for an ENEC increase, Appalachian Power said the prices for coal and natural gas rose sharply across the country in 2021 and 2022. As a result the company paid more for fuel and purchased power than the amount included in rates. The company is seeking reimbursement of $553 million of costs incurred, but not yet recovered, to produce and provide electricity.
The proposed settlement includes a $50 million reduction in the requested fuel deferral amount, Appalachian Power said in a press release issued Wednesday. In addition to fuel costs, the settlement addresses storm recovery, environmental compliance and other costs associated with Appalachian Power and Wheeling Power’s generation fleets. It also utilizes a financial tool known as securitization, an option the West Virginia Legislature passed in 2023 to address customer affordability.
