Fall 2025

Greetings!

Welcome to the Fall 2025 issue of the West Virginia Energy Consumer Update, a publication of the West Virginia Energy Users Group (WVEUG). We aim to provide accurate, fact-based information on energy rates and issues, in part to clarify ongoing misunderstandings about energy production and consumption in West Virginia and its impact on the state’s economy. Our goal is to promote changes necessary to position West Virginia as a leader in the energy field and advance West Virginia’s economy.

 

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West Virginia’s Electric Rates Stuck in the Middle of the Pack

Notwithstanding the need for West Virginia to compete against and exceed surrounding states, the state’s fully regulated monopoly electric rates give West Virginia no economic advantage. Once upon a time, West Virginia’s electric rates were the best (lowest) in the nation, but now our rates for large manufacturing and industrial customers rank 25th among the 50 states, based on the most recent data released by the Energy Information Administration. In fact, West Virginia’s power rates for manufacturing and industry are higher than Kentucky and Ohio and compare only marginally to Pennsylvania and Virginia, where the largest business users can get better pricing deals for themselves in the competitive market for electricity.

West Virginia needs to re-think continuing monopoly regulation as it relates to the very largest consumers of power if it wants to realize the economic benefits of an all-of-the-above energy strategy that allows our economy to outpace surrounding states. 

American Electric Power (AEP) Continues Flood of Rate Increase Requests

AEP, on behalf of Appalachian Power and Wheeling Power, has continued to pursue more and more increases to their electric rates. On Friday of last week, the Public Service Commission (PSC) issued Orders addressing AEP requests for nearly $400 million in new rate increases, reducing those requests and conditionally freezing any actual rate increases pending a potential “securitization” of related amountsThis would be welcome relief for all ratepayers given that since 2019 AEP has sought no less than 30 separate rate changes and received over $600 million in rate increases, an almost 50% rate increase in that timeframe. WVEUG continues to do its level best to fight against this onslaught on behalf of large manufacturing and industry, as well as all consumers.

What Does the New Micro-Grid Law do for Existing Business and Industry? Not much.

The Legislature passed and the Governor endorsed House Bill 2014 as a product of the 2025 Legislative Session. The new “Micro-Grid” law is intended to incentivize the development of business campuses to attract and serve new Data Centers with third-party owned and operated power generation (as opposed to being powered by the incumbent monopoly utility). And although the goal of attracting new business to West Virginia is worthwhile, the new law does virtually nothing for existing manufacturing and industry in West Virginia who have already invested hundreds of millions of dollars and other resources in the state. In fact, the new law specifically excludes “existing load” from the potential benefits of third-party power and micro-grid campuses. WVEUG encourages the Legislature to re-evaluate its focus to ensure that West Virginia is doing all it can to retain existing business and industry as it relates to power pricing and availability.

©2025 West Virginia Energy Users Group

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