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Last Updated: April 2007
10/00: In light of the low cost of electricity in West Virginia and the
price spikes experienced this past summer in other States that have
restructured retail markets, lawmakers seem to need to be convinced that
restructuring will benefit West Virginia consumers. Before the provisions of the restructuring law
can take effect, a resolution must be passed by the legislature in 2001. Most
concerns center on protecting small (residential) consumers from price
increases.
09/00: The West Virginia Public Service Commission (PSC) has begun hearing testimony from electric utilities regarding their plans for unbundling electric rates. Monongahela Power Company and The Potomac Edison Company, both owned by parent company Allegheny Power, were the first to participate in the hearings. Hearings for the remaining West Virginia utilities are scheduled throughout the months of October and November.
03/00: The Legislature approved the Electricity Restructuring Plan submitted by the PSC. The plan will allow retail choice by January 2001, unbundles and caps rates until 2004, and provides commercial and industrial rate reductions through 2005. The legislation requires passage of a resolution in the 2001 session before the provisions of the law can go into effect.
01/00: The West Virginia Pubic Service Commission (PSC) issued an order recommending a plan for restructuring on January 28, 2000. The PSC submitted this plan, the culmination of three years of study, to the legislature for approval. The plan will implement consumer choice by January 2001, provides a rate freeze through 2004, and will stabilize rates through 2014. In the plan, divestiture is not required, but utilities must transfer generation to a fully separate subsidiary by 2005.
09/99: The Consumer Advocate Division of the PSC argues that consumers in West Virginia have already paid the stranded costs associated with power plant construction. They are also pushing for a rate cap in the deregulation plan to be developed for submittal to the legislature early next year. All parties are planning to begin negotiation of the plan by November 1999.
01/99: The PSC scheduled 2 hearings in August of 1999 that will address electric restructuring issues such as stranded costs and consumer protections.
11/98: The PSC staff issued a status report on its study of deregulation in West Virginia stating that utilities, industrials, consumer advocates, and marketers have failed to reach a final consensus on a restructuring plan in West Virginia.
10/98: The PSC pushed back the October 1998 deadline for its final report on restructuring to November 16, 1998.
09/98: The PSC suspended an October 1998 hearing on deregulation, delaying any plan to submit recommendations to the 1999 legislature. No hurry is seen to enact deregulation since West Virginia rates are low.
06/98: A report was filed with the Consumer Advocate Division of the PSC stating that the public interest would not be served by the current proposals to deregulate the State’s electric power industry. West Virginia enjoys some of the lowest rates in the Nation, and it is feared that rates for residential consumers would rise in a competitive electricity market.
05/98: In compliance with HB 4277, a new restructuring docket was established. Proponents of deregulation are requested to file plans meeting criteria in HB 4277. A series of restructuring workshops will be held this summer and fall. Proposed plans have been submitted by 11 parties including AEP.
03/98: House Bill 4277 was passed to give the PSC authorization to develop a restructuring plan for presentation to the legislature in January 1999. The plan will require legislative approval. The principles which a restructuring plan should be based on are included in the legislation.
01/98: A bill was introduced to the legislature to authorize the PSC to design and implement an electricity deregulation plan.
05/97: The PSC formed a task force to study restructuring, and a report is due October 1997.