July 30, 2012
MASON COUNTY — According to a recent release from the Public Service Commission (PSC) of West Virginia, Appalachian Power Company’s level of current electric rates will not increase.
It was reported that the PSC recently issued an order in the Appalachian Power Company and Wheeling Power Company, doing business as American Electric Power’s (AEP) annual expanded net energy cost (ENEC) case. Under the Commission Order, the level of current electric rates will not increase.
It was reported the costs to obtain fuel to generate electricity and purchase power are the largest expense for an electric utility and make up the largest component of customer rates. In an ENEC case, customer rates are adjusted to reflect only projected changes in the utility’s cost of fuel and purchased power, specified environmental compliance and construction costs, and to true-up recovery of actual ENCE costs for the previous period. The ENCE process does not involve the recovery of profit or rate of return on investment.
It was also stated that there are still several cases involving AEP that remain before the Commission that may impact residential rate in the future, including the application by Century Aluminum for a special rate for electricity and the anticipated Securitization case in which AEP is expected to seek recovery of its deferred under-recovered ENEC cost through low cost bonds, pursuant to legislation passed by the legislature earlier this year.
In addition to serving Mason County, AEP serves over 429,000 customers in Boone, Brooke, Cabell, Clay, Fayette, Greenbrier, Jackson, Kanawha, Lincoln, Logan, Marshall, McDowell, Mercer, Mingo, Monroe, Nicholas, Ohio, Putnam, Raleigh, Roane, Summers, Wayne, and Wyoming Counties.
More information may be obtained by accessing the Commission website, www.psc.state.wv.us and referencing case number 12-0399-E-P.