Appalachian Power has filed a new case with state regulators asking for a rate increase.
Instead of the roughly 17 percent increase it had previously sought, it is proposing instead to spread out the cost over time through securitization, resulting in a smaller 4 percent increase.
The West Virginia Public Service Commission dismissed the company’s earlier rate filing amid a torrent of opposition from residents, local officials and school districts concerned about the rising cost of their bills.
“Without leveraging the 2023 securitization legislation, traditional recovery of our investments would add to the burden some of our customers already face due to rising inflation and costs across many industries,” said Aaron Walker, Appalachian Power’s president and operating chief.
Securitization involves buying bonds that would be paid off over a period of years. The term for the proposal would be 20 years, according to the company.
The company said a more traditional approach to its filing would result in a 13.5 percent monthly increase for most electricity customers, or almost $24.
The securitization method would reduce that amount to $6.72 for a customer who uses 1,000 kilowatts a month. The company would also implement a program to stabilize rates.
Appalachian Power and Wheeling Power have 460,000 customers in 25 West Virginia counties.
The PSC has approved other, smaller increases in recent months, including costs for environmental compliance, vegetation management and the coal used to produce electricity.
Amid the rising cost of using coal and pending regulations to cut carbon dioxide emissions from power plants, Appalachian Power has told regulators in Virginia that it could convert its Amos and Mountaineer plants in West Virginia to burn gas instead of coal.
The plants serve electricity customers in both states. Unlike West Virginia, Virginia has pivoted sharply away from coal, embracing gas and renewables.