Mon Power, Potomac Edison Customers in W.Va. to Benefit from Lower Rates
October 2, 2020
Mon Power and Potomac Edison recently submitted filings with the Public Service Commission (PSC) of West Virginia that are expected to lower electric rates by $50 million in 2021.
Under a cost recovery process established by the PSC in 2007, Mon Power and Potomac Edison customer bills are adjusted annually to reflect increases or decreases in the cost of fuel used to generate electricity and purchased power. This year’s filing reflects a $55-million reduction in these costs, a savings passed to customers.
If approved by the PSC, the monthly bill for the companies’ typical West Virginia residential customer using 1,000 kilowatt-hours (kWh) of electricity would decrease by 3 percent or $3.24 per month, dropping an average bill to $103.62 from the current $106.86. With the decrease, rates for Mon Power and Potomac Edison’s West Virginia residential customers will be about 22-percent below the national average.
The 2021 residential customer bills also would reflect the impact of a second filing seeking to recover about $5 million in costs associated with modernizing the boilers at the Fort Martin and Harrison coal-fired power plants in West Virginia to help ensure continued environmental compliance. The work includes updating existing emissions control equipment, enhancing particulate control systems, and replacing flue-gas removal ductwork and expansion joints.
“These filings continue a trend that has resulted in the rates for our West Virginia utilities being reduced by about $120 million since 2018,” said Jim Myers, president, West Virginia Operations. “With 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.”
If approved by the PSC, the new rates would begin Jan. 1, 2021, and remain in place until Dec. 31, 2021.