Appalachian Power, along with Wheeling Power, today submitted its annual Expanded Net Energy Cost (ENEC) filing to the W.Va. Public Service Commission (PSC) for reimbursement of past and ongoing costs of fuel (primarily coal) and purchased power. In addition, the companies filed a proposal for Wheeling Power to acquire an undivided 50 percent of the Mitchell Plant from AEP Generation Resources to meet the capacity and energy obligation to serve Wheeling Power customers.
The companies are requesting a $68 million increase in the ENEC to account for the difference between the amount currently being collected and projected expenditures through the next annual filing period. For a residential customer using 1,000 kilowatt-hours per month, the request brings the monthly bill to $98.14, up 4.4 percent from the current bill of $94.
The ENEC is primarily made up of variable costs that fluctuate. The 2013 ENEC resulted in a 3 percent decrease. The proposed 2014 ENEC represents rates that are 1.4 percent higher than rates from the 2011 and 2012 ENEC cases.
The companies are also filing to acquire by June 30, 2014, 50 percent of the Mitchell Plant, two 800 megawatt fully-scrubbed coal generating units located near Moundsville, W.Va. The companies are seeking to secure a reliable, low-cost source of electricity for Wheeling Power customers.
Currently Wheeling Power secures power for its customers through a contract with AEP Generation Resources. In its order in the 2013 asset transfer case, the PSC instructed the companies to file a plan for serving Wheeling Power’s load. Today’s Mitchell transfer filing offers a long-term, economical plan for serving the Wheeling Power load in a manner that does not impact customer rates.
The company also filed with the PSC an annual review of its energy efficiency and demand side management programs. This year, the company will introduce several new programs to help customers reduce their electricity consumption. Key among the residential programs is an appliance recycling program in which customers can turn in their old refrigerators and freezers and receive a $50 rebate. Another new program will provide customers credits to their bills when they allow the company to cycle their air conditioning units when electricity demand is at its highest. Plus, LED bulbs will be added to the instant rebate customers receive when purchasing energy efficient light bulbs at major retailers.
Appalachian’s proposed 9.8 cents per kilowatt-hour remains below the national average residential price for electricity of 12.2 cents/kwh. Both Appalachian Power and Wheeling Power are subsidiaries of American Electric Power (AEP). Tips for saving energy can be found on Appalachian’s website, www.AppalachianPower.com.