Two utilities under FirstEnergy—Monongahela Power (Mon Power) and Potomac Edison—filed an application with the West Virginia Public Service Commission (PSC) last Friday, proposing two optional paths for raising electric rates.

The first path is a comprehensive rate adjustment plan, involving an increase of $188.4 million, which includes base rates and first-year surcharges. The companies stated that this plan would increase combined revenues by 10.6%. According to their filing with the West Virginia Public Service Commissionapplication documents, residential customer rates would increase by 13.9%, commercial customer rates by 8%, industrial customer rates by 7.8%, and street lighting rates by 11.6%. If approved, the plan would take effect on March 12.

The second path is an inflation and plant investment adjustment mechanism, serving as an alternative to a traditional general rate case, aimed at mitigating the impact of rate increases on customers. The two companies proposed a two-phase implementation process: the first phase would raise $37.9 million starting August 1, and the second phase would raise an additional $37.6 million starting June 1, 2027. The companies stated that this proposal would increase company revenues by 4.25% over a period lasting at least until February 2029.

Under this proposal, residential customer rates would increase by 3% in the first year and 2.9% in the second year. The companies stated that under this plan, they would not file another rate adjustment proposal until at least April 1, 2028.

Mon Power and Potomac Edison noted that the framework for the second path is based on a mechanism previously allowed by the PSC for two utilities under American Electric Power.

"The companies believe that a rate adjustment mechanism based in part on inflation impacts and new plant investments is an appropriate way to moderately and gradually increase base rates, while also reducing the workload and complexity involved in the hearing and implementation of traditional general rate cases," Mon Power and Potomac Edison said in a statement.

The companies have requested that the PSC make a decision on which path to adopt by May 29.

Mon Power serves approximately 395,000 customers in West Virginia, and Potomac Edison serves approximately 155,000 customers in the state.