Appalachian Power says it will fight an appeal challenging its rate hike, securitization plan

Appalachian Power says an appeal challenging a recent decision by the Public Service Commission of West Virginia could affect the stability of customer electric rates.

Appalachian Power Company (APCo) says it will explore what legal avenues it can to fight an appeal filed last week challenging its $40 million rate hike and securitization plan.

WVOW News

CHARLESTON Appalachian Power said the state PSC's April 16 order approved an inflation-based rate adjustment totaling about $40 million, roughly two percent of overall revenue. In that order, the PSC approved a four percent base rate increase for residential and commercial customers of Appalachian Power. A residential customer using 1,000 kilowatt-hours per month will see an increase of about $4.84 on their monthly bill.

As part of the agreement, the utility company withdrew its notice of intent to file a new base rate case in 2026. Appalachian Power also agreed not to file another base rate case before June 1, 2027. Officials say the arrangement is meant to reduce the frequency of rate changes moving forward and provide more stability for customers in the short term.

Company officials said a traditional base rate filing could have exceeded $200 million.

Appalachian Power President and COO Brian Abraham said the approved approach provides more predictable rates and allows the company to continue investing in its electric system while limiting the impact on customers.

The appeal was filed last week on behalf of Appalachian Power customers by Beckley attorney Stephen New. In that appeal, New calls the PSC-approved plan "experimental" and claims Appalachian Power failed to demonstrate that the new rates under the plan are "just and reasonable" under the standards of the West Virginia State Code.

Appalachian Power says it will respond to the appeal through the appropriate legal process.

PHOTO | File