Mon Power and Potomac Edison have filed a base electric rate review by the West Virginia Public Service Commission (PSC). The proposed $207 million adjustment supports investments that strengthen the energy grid, fund reliability programs targeting rural communities and establish a team to support low-income customers.

In addition, the filing requests recovery of costs associated with storm repairs, including multiple storms in December, depreciation changes for Mon Power’s generating plants and higher operating and maintenance costs associated with inflation.

“While strict cost management and careful planning have allowed us to keep our West Virginia electric rates the lowest among the state’s investor-owned electric companies,” said Jim Myers, president of West Virginia operations, “an adjustment is required to keep pace with rising prices and allow us to continue making critical electric system enhancements. Our proposal supports ongoing preventative maintenance and equipment enhancements that would reinforce the grid against progressively stronger storms.”

The proposed rate review supports investments in the generation, transmission and distribution system, storm restoration work and a bill assistance initiative that aims to keep customers’ needs and expectations top of mind. The rate proposal includes:

• Measures that support investments to help create a more reliable and resilient electric system, including installation of new automated technology.
• An Infrastructure Investment Program to enhance reliability in rural areas by funding specific, targeted projects such as the construction of tie lines to provide alternative sources of power and new substations and additional power lines.
• Creation of a new customer advocacy program to evaluate processes from the unique vantage point of a low-income customer to help provide recommendations for process improvements.

Mon Power and Potomac Edison have grown significantly in the nine years since the last base rate review, now serving approximately 550,000 customers in West Virginia – 25,000 more than in 2014. In addition, the companies have collectively invested more than $1 billion to improve and maintain the distribution, transmission and generation systems since the last rate review.

If approved, Mon Power and Potomac Edison customers would continue to pay the lowest electric rates among West Virginia’s investor-owned regulated electric companies. The average residential customer using 1,000 kilowatt hours per month would see a 15% overall rate increase – or $18.07 monthly.

The requested rate reviews are subject to PSC review. Any increase in rates would not become effective until approved and authorized by the commission, which is expected to occur in March 2024.