Two FirstEnergy utilities — Monongahela Power and Potomac Edison Co. — on Friday proposed two pathways for increasing their rates in West Virginia.
One option calls for a $188.4 million hike that includes base rates and a year-one surcharge, increasing the combined utilities’ revenue by 10.6%, according to their application with the West Virginia Public Service Commission. It would increase residential rates by 13.9%, commercial rates by 8%, industrial rates by 7.8% and street lighting by 11.6%, the utilities said. If approved, it would take effect on March 12.
The second option — an alternative to a general rate case called an inflation and plant investment adjustment — aims to ease rate hikes for customers. The FirstEnergy utilities proposed a two-part process, starting with a $37.9 million increase on Aug. 1. It would be followed by a $37.6 million hike on June 1, 2027. The utilities said the proposal would increase their revenue by 4.25% through at least February 2029.
Under the proposal, residential customer rates would increase 3% in the first year and 2.9% in the second year. The utilities wouldn’t file another rate change proposal until April 1, 2028, at the soonest, they said.
The second option is based on a framework the PSC allowed for two American Electric Power utilities, according to Mon Power and Potomac Edison.
“The companies believe that a rate adjustment approach based in part on inflationary impacts and added plant investment is an appropriate mechanism for a moderate and gradual increase in the companies’ base rates, and in addition would reduce the effort and complexity involved in processing and administering a traditional general rate case,” Mon Power and Potomac Edison said.
The utilities asked the PSC to make a decision by May 29 on which approach it wants the utilities to pursue.
Mon Power has about 395,000 customers in West Virginia and Potomac Edison has about 155,000 customers there.
