The Public Service Commission (PSC) of West Virginia issued an order June 22 approving the joint stipulation and settlement agreement filed by Appalachian Power and Wheeling Power May 30. The Commission order granted the companies a combined annual increase in revenues of approximately $85.5 million, or 10 percent, effective July 1, 2007. Residential customers using 1,000 kilowatt-hours a month will see their bills rise from $58.87 to $64.55, and bills for customers using 2,000 kilowatt-hours a month will rise from $107.65 to $119.00.

The increase was requested through a mechanism approved by the PSC in July 2006 to annually adjust rates for the cost of environmental construction projects, fuel and purchased power.

Appalachian Power is investing more than $1.4 billion to build flue gas desulfurization units – scrubbers – to reduce sulfur dioxide emissions from its Mountaineer and John Amos generating plants and comply with mandated federal and state clean air laws. These projects will result in cleaner air at the lowest possible cost. The Mountaineer scrubber went on line earlier this year; the first scrubber at Amos is set to begin operation next year.

Approximately $28.5 million of the increase is to cover these construction costs. Another $54.8 million is for increases in the cost of coal and purchased power. The PSC also approved $2.2 million in additional revenue to recover Appalachian’s first year cost of rehabilitating four small electric utilities in McDowell County that Appalachian acquired as of July 1.

Additional resources

• W.VA. Commisssion approves Appalachian, Wheeling Power rate settlement
• Appalachian, Wheeling Power file request for increased rates with Public Service Commission
• Appalachian Power customers set new all-time pea