Possible Settlement Reached on FirstEnergy Base Rate Increase

On Monday, the WV PSC posted the description of the settlement in the FirstEnergy rate base case.  As Keryn over at StopPATH WV points out, quite a few of the descriptions of the settlement of specific issues in the document make no sense.  She speculates that Yoda now has a job with Jackson Kelly writing up settlement agreements.  Because of the nonsense in the settlement proposal, I was holding off on posting about it until the PSC issues its final order in the case.  The PSC usually does a good job of explaining what is going on in its orders.

Yesterday, the AP did a story on the settlement that provides a little enlightenment on some issues.  Instead of residential rates rising over 17 percent, as FirstEnergy wanted, they will rise “only” 7.5 percent.  Although Yoda got a hold of the description of what will happen to the flat rate “customer service charge” that creates volume discounts for electrical use, it appears that FirstEnergy will not be doubling the $5 per month fee.  It also appears that instead of increasing the recoverable return on equity on base rate costs to 11% as FirstEnergy wanted, the current 10.5% return on equity will be reduced to 9.9%.

I will do a more detailed account after the PSC order clarifies Yoda’s settlement terms.

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