PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON
CASE NO. 17-0296-E-PC
MONONGAHELA POWER COMPANY and
THE POTOMAC EDISON COMPANY
Petition for Approval of Generation Resource
Transaction and Related Relief.
NOTICE OF FILING AND HEARING
Monongahela Power Company (Mon Power) and The Potomac Edison Company (PE, and collectively, the Companies), electric public utilities who provide electric service to approximately 530,000 customers in West Virginia, filed for approval of a generation resource transaction (Transaction) with the Public Service Commission (Commission) on March 7, 2017. The Companies contend that the proposed Transaction resulted from a competitive request for proposal process and involves the purchase of an existing electric generation asset to help remedy a deficiency in the generation required to meet customer electrical needs. Specifically, Mon Power is proposing to purchase a 100 percent ownership interest in Pleasants Power Station (Pleasants), located in Pleasants County, West Virginia, from Allegheny Energy Supply Company, giving Mon Power full ownership and control of Pleasants. The Transaction would result in Mon Power acquiring 1,300 megawatts (nameplate capacity) of coal fired installed generation capacity at a price of approximately $195 million.
The Companies seek Commission approval of a rate decrease that consists of a Temporary Surcharge (Surcharge) to recover the costs associated with purchasing and operating Pleasants offset by an ENEC reduction. The Surcharge is proposed to be effective upon closing of the proposed Transaction (proposed for September 1, 2017) and remain in effect until incorporated into base rates in the future. The Companies have calculated that the annual revenue requirement associated with the ownership of Pleasants is approximately $111,415,681. However, the Companies project additional revenues to be generated from Pleasants power sales recognized through the Commissionás Expanded Net Energy Cost (ENEC) rate proceeding will more than offset the Surcharge in the future resulting in a potential net decrease in rates to customers. The decrease to ENEC rates would remain in effect until the next ENEC adjustment which is expected on January 1, 2019. Based upon the Companies current calculations of additional annual ENEC revenues of approximately $135,030,909, the net effect of the Surcharge and ENEC rates would lower rates by approximately $23,615,228 annually, an overall decrease in total annual revenues of about 1.6 percent. Absent the projected ENEC revenues, the surcharge revenue requirement represents an increase in total revenues of 7.7 percent. The average monthly bill impact for the various classes of customers is proposed to be changed as follows:
Total Rate Decreases with Surcharge Proposed by Companies
($) DECREASE ({4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c}) DECREASE
Residential $0.96 0.9{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c}
Commercial $4.68 1.3{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c}
Industrial $4,644.94 2.8{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c}
Street Lighting $8.23 2.2{4ceb532c6f579389df471c6c1e832caf2346b74dc60fcbf6aabd4d29df3baf9c}
The decreases are based on averages of all customers in the indicated class. Individual customers may receive changes that are greater or less than average. Additionally, cost allocation as approved by the Commission among customer classes could increase or decrease the expected bill impacts. The requested rates and charges are only a proposal and are subject to change (increases or decreases) by the Commission in its review of this filing. Any increase or decrease in rates and charges will not become effective until authorized and approved by the Commission.
The Commission has scheduled an evidentiary hearing in this matter for September 6-8, 2017, beginning at 9:30 a.m. at the Public Service Commission, 201 Brooks Street, Charleston, WV 25301.
Anyone desiring to protest or intervene should file a written protest or request to intervene within thirty (30) days following the date of this publication unless otherwise modified by Commission order. All protests or requests to intervene should briefly state the reason for the protest or request to intervene. Requests to intervene must comply with the rules of intervention set forth in the Commission’s Rules of Practice and Procedure. All written comments/protests and requests to intervene should state the case name and number and be addressed to Ingrid Ferrell, Executive Secretary, P. 0. Box 812, Charleston, WV 25323. Public comments may also be filed online at https://www.psc.state.wv.us/scripts/ onlinecomments/ default.cfm by clicking the âFormal Caseã link.
MONONGAHELA POWER COMPANY and THE POTOMAC EDISON COMPANY
Apr 24, May 1