CHARLESTON, W.Va. — The Kanawha County Commission plans to, as commission President Kent Carper described, “intervene in a serious way” against proposals from Appalachian Power Company and West Virginia American Water Company to increase rates amid millions in savings from the Tax Cuts and Jobs Act.
Appalachian Power and Wheeling Power submitted proposals to the West Virginia Public Service Commission to increase monthly rates by an average of 11 percent for residential customers, while West Virginia American Water submitted an increase of 24 percent.
Filings with the PSC revealed Appalachian Power is saving $235 million because of the new tax law, and is putting $131 million toward the company’s fuel and vegetation control program. The utility is setting aside $19 million to reduce its rate increase request from $115 million to $96 million.
As for West Virginia American Water, the company is saving $11.4 million. The related rate increase would result in around $33 million for the water company.
“That is absurd,” Carper said at last week’s commission meeting. “We’re going to do two things: we’re going to intervene in all the cases and we’re actually going to be a party to the litigation. That’s number one. And number two: we’re going to work with the Consumer Advocates office and our lawyer — who has some familiarity on how to do this — and try to point out just how absurd this really is.”
Carper said he doubts Appalachian Power expects the PSC will approve its request, instead hoping for a smaller increase.
“They’re always happy to take half of it and take then ask for another one the next year,” he said. “They’re getting a huge windfall from the tax cuts. They don’t need any rate increase.”
The county commission is not alone in its efforts; the county and the city of Charleston will act together in opposing the increase. Carper said they will ask other municipalities if they would like to join the effort.
“Misery loves company,” he joked.
The PSC is expected to respond to the proposals by July 2.