Next week, the Public Service Commission of West Virginia (PSC) will discuss our request to review base rates for customers, our first such request since 2019. 

We understand that any rate change can be challenging. Our team has taken significant steps to address rising costs and reduce future rate increases for you. 

Securitization and Rate-Making Innovations

To lessen the impact on your bill, we have proposed an approach known as securitization. We partnered with your legislators to help securitization become law in the Mountain State in 2023 for the benefit of our customers.

If accepted by the PSC, securitization could reduce the potential bill increase from $21 to approximately $6 for a residential customer using 1,000 kilowatt-hours (kWh) per month.

While this helps with current bills, we have also proposed an Electricity Rate Stabilization (ERS) mechanism to limit future increases. This aims to eliminate several existing surcharges and stabilize base rates, capping annual increases at 3%.

We know that any rate increase can be difficult for our customers, especially in the current economic climate. Please be assured that we are committed to delivering reliable electric service at an affordable price. Our ongoing investments are designed to enhance the grid’s reliability and resilience, ensuring prompt response to any outages that may occur.

Thank you for the opportunity to serve you as we work together to build a stronger, more reliable energy future for our community. To learn more about our base case or how securitization benefits you, please visit AppalachianPower.com/WVRateReview. 

Sincerely,

Aaron Walker
Appalachian Power President & Chief Operating Officer