Appalachian Power (APCO)
On September 13, the Public Service Commission of West Virginia (PSC) issued an order approving an $88.8 million rate increase, effective immediately, for the portion of the 2023 Expanded Net Energy Cost (ENEC) request intended to bring fuel cost and revenue in alignment.
- The order does not address the accumulated ENEC under-recovery balance of nearly $553 million from the three open ENEC cases (2021, 2022, and 2023).
- All three ENEC cases remain open until the PSC issues final orders.
- In our April 28, 2023, ENEC case filing, we proposed a securitization option to address under-recovery amounts and mitigate any rate impacts. If adopted as proposed, that option is expected to have minimal or no rate impact beyond the $88.8 million ENEC revenue adjustment ordered on September 13.
- The anticipated impacts of the recent ENEC increase per Tariff Rate in APCO WV, effective September 13th, 2023, is between 4-7%.
APCO VA fuel factor increased from $0.023/kWh to $0.05562/kWh effective January 1, 2023.
Earlier this year, Appalachian Power petitioned the Virginia State Corporation Commission to increase the Transmission Rate Adjustment Clause (T-RAC) from $368 million to $413 million, a $45 million increase. The T-RAC is the portion of a customer's bill that recovers transmission services, fees, and new construction costs.
Appalachian Power and Wheeling Power filed a request in October 2023 with the Public Service Commission of West Virginia (PSC) to update current rates for the Environmental Compliance Surcharge (ECS). The $37.2m ECS would provide for the recovery of equipment and installation costs associated with complying with the U.S. Environmental Protection Agency (EPA) rules on Coal Combustion Residuals (CCR) and Effluent Limitation Guidelines (ELG).