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Mon Energy, Potomac Edison object to Longview Energy request to PSC to chop $145 million from their $167.5 million ENEC fee hike proposal

MORGANTOWN – FirstEnergy sisters Mon Energy and Potomac Edison have filed their objections to a proposal by Longview Energy to chop $145 million from their $167.5 million ENEC rate-hike case.

They filed the objections with the Public Service Fee on Friday.

The PSC case is Mon Energy’s and Potomac Edison’s annual ENEC – expended internet vitality price – submitting.

They’re asking for $167,465,330, which they venture would add $9.19 to the common month-to-month residential invoice, elevating it from $120.20 to $129.39 – a 7.8% hike.

Longview Energy in a Friday submitting is asking the PSC to dismiss $144,805,585, saying the FirstEnergy firms haven’t prudently managed their prices or complied with PSC directives. They’re asking the PSC to dismiss these prices with prejudice, which means the businesses might by no means once more search to recoup them.

That would go away the businesses a hike of simply $22,659,745 on this case.

Longview stated the portion they need dismissed – the practically $145 million – is under-recovery for the interval of July 1, 2021 by way of June 30, 2022. State code requires the PSC to find out that “the prices resulted from prudent actions on the a part of the utility and have been cheap.”

The interval in query – Fiscal Yr 2002 – was a interval of rising vitality costs and the businesses ought to have been working their energy crops at excessive capability and promoting the facility into the PJM regional vitality grid, which might have decreased their ENEC prices and saved ratepayers cash.

As an alternative, Longview stated, the businesses ran their Fort Martin and Harrison coal-fired crops at decrease capacities. “Consequently, as a substitute of making a living through the 2021-2022 Evaluate Interval, the Firms misplaced cash at an alarming fee.”

The sister firms supply a number of the explanation why the PSC ought to deny Longview’s movement to dismiss the $145 million.

One, Longview was a celebration in final yr’s ENEC case and basically agreed the prices have been prudent and cheap by agreeing to a settlement in that case.

(All instructed, Mon Energy and Potomac Edison calculate an under-recovery – recouping lower than they spent – of $243,032,313. They suggest to separate the full $243 million throughout two years, so this ENEC request, filed Aug. 31, is for the $167.5 million. This yr’s case contains $91,898,347 that was deferred from their 2022 ENEC case, per the settlement.)

They observe that the PSC determination to maintain the 2022 ENEC open for evaluate due to the carryover prompted some confusion. Nonetheless, “The Firms clearly offered affirmative proof of the prudency of these prices within the 2022 ENEC case,”

Two, the PSC and all of the events from that case, together with Longview and the West Virginia Vitality Customers Group – which supported Longview’s proposal in a submitting earlier this week – have all the proof from that case to evaluate the prices and retain the best to boost points about these prices on this continuing.

Three, the businesses haven’t ignored or disregarded any PSC orders: the PSC didn’t get them organized to re-file final yr’s proof on this yr’s case, or submit additional proof about that case.

The businesses counsel 4 methods to handle Longview’s issues: they will refile all of final yr’s proof on this case; they will file a complement to testimony on this case that the $145 million in prices was prudent; the PSC might consolidate each instances; or the PSC might merely take administrative discover of proof in final yr’s case.

They conclude: “It’s disingenuous that Longview and WEUG would execute a settlement settlement in final yr‘s ENEC continuing whereby they advisable to shut a portion of the evaluate interval and now argue for full disallowance of the evaluate interval prices. … There isn’t any incentive for the businesses to conform to unfold incurred prices over a Ion er restoration interval if a stipulating occasion is then going to argue ‘gotcha’ the next yr that you just didn’t refile all the pieces from an present case the place everybody was concerned as a celebration.”

Their different two instances are to fund their Vegetation Administration Program, for the common residential buyer a hike of $2.47 monthly; and a base fee hike request that might increase the associated fee for the common residential buyer by $18.07 monthly.

Different PSC information

In different Friday PSC filings:

  • Mon Energy and Potomac Edison filed a brand new case for approval for brand spanking new pilot market-base tariff for choose giant industrial prospects. It could be a voluntary choice and restricted to 2 prospects. This case might be totally defined in a future story.
  • Prospects of Cardinal Pure Gasoline Firm Northern Division-Blacksville ought to see their gasoline payments go down a bit beginning Nov. 1. The PSC’s Utilities Division submitted an interim fee advice agreeing with the Cardinal’s proposed bought gasoline fee case, to get well precise prices. The common residential buyer invoice would lower by $16.72 monthly or 16.59% and the common business buyer invoice would lower by $61.22 monthly or 17.88%.
  • For purchasers of Mountaineer Gasoline, which serves 49 of 55 counties, the PSC Utility Division advisable a proposed bought gasoline fee that might decrease a mean residential buyer invoice by $34.11 monthly, 18.25%, to take impact Nov. 1.

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