West Virginia utility customers are set to pay more for electricity after state regulators approved a two-step rate hike for local utilities Mon Power and Potomac Edison. While the plan is smaller than one option the companies proposed, it still means higher monthly bills for households already dealing with rising costs.
What happened?
According to The Dominion Post, state utility regulators signed off on a phased rate increase for customers of Mon Power and Potomac Edison, with total rate costs rising by $37.9 million by Aug. 1, 2026 and by another $37.6 million on June 1, 2027.
The outlet noted that the first phase adds an estimated $3.65 to a typical home bill and raises commercial rates 1.7% while the 2027 phase adds another $4.01 for residential customers and 1.6% for commercial users.
For a household using the average amount of electricity, that means a monthly bill climbing from $137.86 to $145.52, an overall increase of about 5.6% when both phases are complete, as The Dominion Post reported.
According to the outlet, the approved changes are a smaller increase than the companies' more aggressive alternative: a traditional base rate adjustment that would have added $17.89 per month to the average residential bill, or a 13% total increase.
Rather than allowing one larger jump, the PSC approved the option called an "Inflation and Investment Adjustment," which spreads the impact into smaller increases over time, The Dominion Post noted.
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The outlet reported that, to justify the increases, the utility companies said they wanted regulators "to review electric rates so the companies can keep investing in a safe, reliable electric system that is better prepared for severe weather, while keeping costs in mind."
Why does it matter?
Ratepayers are being asked to spend more on monthly utility bills across the U.S., and, for families already dealing with affordability concerns, each added charge falls directly on monthly budgets.
The commission said using two steps should push the next general base rate case farther into the future. Under the order, the companies cannot file a general base rate case before April 1, 2028, meaning any increase from that process would likely not show up until around March 2029, The Dominion Post reported.
In the order, as reported by the outlet, regulators described the decision as "a reasonable and worthwhile rate experiment."
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The Dominion Post also pointed to a similar multi-phase approach that was taken in a case involving Appalachian Power Co. and Wheeling Power Co., indicating that staggered increases like this may continue to be used in West Virginia utility cases.
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