Under a cost recovery clause re-established by the commission in 2007, rates are adjusted annually to reflect upward and downward changes in the cost of fuel and purchased power. Allegheny’s unrecovered costs have grown steadily in the past year, as actual expenses exceeded the amount reflected in customer rates, the company said.
The agreement calls for Allegheny’s West Virginia rates to be increased by $118m (annualized) on January 1, 2010, to recover increased costs of fuel and purchased power.
As a result of the order, the monthly bill for a residential customer using 1,000kWh will be about $91, an increase of $7.65 compared to current rates. Even with the increase, Allegheny’s rates in West Virginia will remain below the national monthly average cost of nearly $117 for residential customers.
To help customers manage their bills, Allegheny offers a budget plan, special payment plans and access to energy assistance programmes. Allegheny Power’s Watt Watchers programmes also provide information and programmes to help its customers manage electricity bills and use energy efficiently.
