Proposed residential rates remain lowest
among state's regulated electric utilities
FAIRMONT, W.Va., June 1, 2023
/PRNewswire/ -- Mon Power and Potomac Edison, subsidiaries of
FirstEnergy Corp. (NYSE: FE), have requested a review of their base
electric rates by the West Virginia Public Service Commission
(PSC). The proposed $207 million
adjustment supports investments that strengthen the energy grid,
funds reliability programs targeting rural communities and
establishes a team to support low-income customers.
In addition, the filing requests recovery of costs associated
with storm repairs, including multiple storms in December,
depreciation changes for Mon Power's West
Virginia generating plants and higher operating and
maintenance costs associated with inflation.
"While strict cost management and careful planning have allowed
us to keep our West Virginia
electric rates the lowest among the state's investor-owned electric
companies, an adjustment is required to keep pace with rising
prices and allow us to continue making critical electric system
enhancements," said Jim Myers,
president of FirstEnergy's West
Virginia operations. "Our proposal supports ongoing
preventative maintenance and equipment enhancements that would
reinforce the grid against progressively stronger
storms."
The proposed rate review supports investments in the generation,
transmission and distribution system, storm restoration work
and a bill assistance initiative that aims to keep customers' needs
and expectations top of mind. The rate proposal includes:
- Measures that support investments the companies have made to
help create a more reliable and resilient electric system,
including installation of new automated technology.
- An Infrastructure Investment Program (IIP) to enhance
reliability in rural areas by funding specific, targeted projects
such the construction of tie lines to provide alternative sources
of power as well as new substations and additional power
lines.
- Creation of a new customer advocacy program to evaluate
processes from the unique vantage point of the low-income customer
that will help provide the companies with recommendations for
process improvements.
Mon Power and Potomac Edison have grown significantly in the
nine years since its last base rate review, now serving
approximately 550,000 customers in West
Virginia – 25,000 more than it did in 2014. In
addition, the companies have collectively invested more than
$1 billion to improve and maintain
the distribution, transmission and generation systems since the
last rate review.
If approved, Mon Power and Potomac Edison customers would
continue to pay the lowest electric rates among West Virginia's investor-owned regulated
electric companies. The average Mon Power or Potomac Edison
residential customer using 1,000 kilowatt hours per month would see
a 15% overall rate increase – or $18.07 monthly.
The requested rate reviews are subject to PSC review. Any
increase in rates would not become effective until approved and
authorized by the Commission, which is expected to occur in
March 2024.
The public is invited to comment on the filing through the West
Virginia PSC's public comment process, and the companies will
participate in public meetings about the plan and engage key
stakeholders to ensure an open and thorough review of the
proposal.
Investor Note: For additional information on the filing,
visit the new "Investor Materials" section of the FirstEnergy
website here.
Mon Power serves about 395,000 customers in 34 West Virginia counties. Follow Mon Power
at mon-power.com, on Twitter @MonPowerWV, and on Facebook
at facebook.com/MonPowerWV.
Potomac Edison serves about 275,000 customers in seven counties
in Maryland and 155,000 customers
in the Eastern Panhandle of West
Virginia. Follow Potomac Edison at potomacedison.com,
on Twitter @PotomacEdison, and on Facebook
at facebook.com/PotomacEdison.
FirstEnergy is dedicated to integrity, safety, reliability and
operational excellence. Its 10 electric distribution companies form
one of the nation's largest investor-owned electric systems,
serving customers in Ohio,
Pennsylvania, New Jersey, West
Virginia, Maryland and
New York. The company's
transmission subsidiaries operate approximately 24,000 miles of
transmission lines that connect the Midwest and Mid-Atlantic
regions. Follow FirstEnergy online
at www.firstenergycorp.com and on
Twitter @FirstEnergyCorp.
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SOURCE FirstEnergy Corp.