Business, Energy, Environment, State Government

Three consumer groups ask PSC to hold public hearings regarding Mon Power/Potomac Edison rate-case net metering proposal

MORGANTOWN – A coalition of three energy-oriented consumer groups has asked the state Public Service Commission to schedule at least four public hearings in one of the rate cases for FirstEnergy sisters Mon Power and Potomac Edison.

“The outcome of this rate case will substantially impact West Virginia families, businesses, and communities disproportionately facing rate impacts,” they wrote.

The groups are West Virginia Citizen Action Group, Solar United Neighbors and Energy Efficient West Virginia. In a footnote, they say they “are submitting this request on behalf of the general public – to ensure that West Virginians affected by the companies’ rate filing have an opportunity to make their voices heard.”

They note that they are already intervenors in the case and have the ability to participate fully.

This case is the companies’ base rate case, filed May 31, requesting $207.5 million for infrastructure and their energy assistance program. The hike would cost the average residential customer $18.07 per month — raising a bill from $120.20 to $138.27.

Along with the rate increase, the chief concern in this case is the companies’ proposal to change the way it credits home solar power customers who contract for net metering. The proposal has generated 1,166 letters of protest.

Net-metering customers generate all or a portion of their own power, typically through solar, and receive credits on their bill for any power they generate in excess of what they use.

Currently, the companies provide a full 1-to-1 credit, meaning energy given to the utility is worth the same as energy bought from the utility. The current residential base rate is about 11.4 cents per kilowatt hour (kWh), and could go up to about 13 cents as the companies’ several rate cases reach their respective conclusions.

The companies propose to change that to base credits on the wholesale rate for electricity, which the filings calculate at 6.6 cents per kWh – roughly half of the 13 cents per kWh. This would take effect for new net-metering customers joining after March 27, 2024.

The three groups propose at least three in-person hearings in three areas within the companies’ service terriroty: Morgantown, Parkersburg and Shepherdstown. They also request a telephonic or online hearing via a platform such as Zoom or Teams.

“Holding public hearings is especially warranted given the high level of public interest in this case,” they said. “It is critical that the commission hear not only from technical experts, but those who stand to be most impacted by this process. Public hearings within the companies’ service territory will provide an accessible forum for impacted customers, and help ensure broader, more diverse engagement, including those who may have difficulty participating via written comments submitted to the [PSC’s online] docket.”

Thirteen letters of protest arrived on Thursday. They included batched form letters and some individual letters.

One person wrote, “FirstEnergy wants to increase their rates while decreasing the rates they pay solar producers, making power less affordable and taking away any avenue for West Virginians to save money. They’re taking money from us to pad the pockets of out of state investors.

“Solar gives us the power to buy less from them and arm ourselves against their rising electricity rates,” the person wrote. “It saves us money, creates jobs, and supports our local economy. FirstEnergy just wants to make more money off us. Let West Virginians have a fair and equitable choice to produce solar.”

A couple wrote, “At our own expense, we installed a rooftop array of solar panels. On sunny afternoons, especially in summer, we lend excess electricity to MonPower, when demand on the system and their costs are highest. This is also when they can charge other customers their highest rates.

“At night, when system demand and costs are lowest, they give our electricity back to us,” they wrote. “In other words, we lose value, to the benefit of MonPower and other customers. The proposed change would make this imbalance even worse.

“Rooftop solar arrays are an important way to reduce our reliance on fossil fuels and the associated disaster that is climate change, to the benefit of all,” they wrote. “Changing the net metering system would discourage others from building solar, to the detriment of all.”

Net-metering customers wouldn’t lose money under the proposal, since they receive credits only for excess generation. But they would recoup their investment in solar equipment more slowly.

The companies have said the change is appropriate “so that other customers are not subsidizing net metering customers and so that net metering customers actually pay for the distribution, transmission, and capacity facilities that they use and costs that are incurred for them.”

Email: dbeard@dominionpost.com