FE’s West Virginia Utilities Reduce Electric Rates
January 8, 2021
Mon Power and Potomac Edison customers in West Virginia will see lower electric bills this year.
The Public Service Commission of West Virginia recently approved a unanimous settlement among numerous varied parties that lowers rates by $50 million for 2021, with the monthly bill for a typical residential customer using 1,000 kilowatt-hours of electricity to decrease by $2.34, or about 2%. The decrease is due primarily to lower fuel and purchased power costs. New rates went into effect on Jan. 1, 2021.
Under a cost recovery process known as the Expanded Net Energy Cost (ENEC), Mon Power and Potomac Edison rates are adjusted annually to reflect increases or decreases in the cost of fuels used to generate electricity, purchased power, certain transmission costs and PJM costs, net of revenue credits and the reconciliation of the over- or under-collection of prior period costs. Fuel costs represent the single largest component of the cost to produce electricity. The companies do not profit from fuel and purchased power costs.
This year, the ENEC revised rates also include recovery of $10.5 million of COVID-19 related costs, which consist primarily of increased uncollectable expenses, along with holding an additional $5 million of the over-recovery balance to apply toward future residential COVID-19 expenses. The ENEC revised rates also include $5 million recovery of additional costs to comply with federal air requirements at the power stations.
“This continues a trend of rate decreases for our West Virginia customers,” said Jim Myers, president, West Virginia Operations. “With residential electrical use increasing more from time being spent at home during the coronavirus health emergency, any opportunity to save on electric bills is helpful for our customers. We are committed to providing safe and reliable electricity at an affordable cost.”
The revised ENEC rates will remain in effect through Dec. 31, 2021.