West Virginia Press Association
CHARLESTON, W.Va. – An audit ordered by state regulators into the operations of two power companies called for greater accountability of lobbying expenses and better recordkeeping generally while it revealed plans for a $2.5 million refund to customers.
The Public Service Commission of West Virginia on March 2 ordered a general investigation into lobbying expenses of Monongahela Power Co. and The Potomac Edison Co after they filed for their first general rate increase since 2014.
The two are subsidiaries Columbus, Ohio-based FirstEnergy Corp., which paid a $230 million penalty in 2021 after being charged by the U.S. Department of Justice with wire fraud concerning legislation passed in Ohio in 2019.
The Commission hired Van Reen Accounting LLC to investigate the lobbying expenditures of the two and file a report by December 31, which the company did. It recommended further investigation into $18.75 million paid BCG Resources, LLC, of Columbus, in lobbying expenses, and suggested further reviews elsewhere.
The report also found that $229,115 in “certain sponsorship costs were mischarged to Mon Power and PE” over nine years. The companies concluded they owe, with interest, $2.5 million to customers. “The companies are proposing to issue a one-time fixed bill credit to customers during the month of July 2024,” the report said.
“The Commission will review the report as part of our ongoing rate cases and will take appropriate action,” PSC Chairman Charlotte R. Lane said.
More information about this case can be found on the Commission website: www.psc.state.wv.us by referencing Case No. 23-0270-E-GI.