Mon Power, Potomac Edison owe $2.5 million to customers, report says - WBOY.com

Mon Power, Potomac Edison owe $2.5 million to customers, report says

CLARKSBURG, W.Va. (WBOY) — An audit ordered by state regulators into the operations of Mon Power and Potomac Edison recently uncovered that the two have plans to issue refunds to their customers totaling $2.5 million.

According to a release, on March 2, the Public Service Commission (PSC) of West Virginia ordered a general investigation into the lobbying expenses of Monongahela Power Co. (Mon Power) and Potomac Edison Co. (PE) after the two filed for their first general rate increase since 2014. The two are subsidiaries of the Columbus, Ohio-based FirstEnergy Corp.

The release said that in 2019, FirstEnergy paid a $230 million penalty after being charged with wire fraud “concerning legislation passed in Ohio in 2019.” The PSC hired Van Reen Accounting LLC to investigate the lobbying expenditures of Mon Power and PE and to file a report by Dec. 31, which it did.

The release said that after the report was filed, Van Reen recommended further investigation into $18.75 million paid to BCG Resources, LLC of Columbus, in lobbying expenses. It also suggested “further reviews elsewhere.”

The report filed by Van Reen found that $229,115 in “certain sponsorship costs were mischarged to Mon Power and PE” over nine years. Both companies came to the conclusion that they owe, with interest, $2.5 million to customers. The report said that the companies are planning to issue a one-time fixed bill credit to customers in July 2024, though neither has made an official announcement as of Saturday, Dec. 30.

Both Mon Power and PE filed for rate increases back in June, with Mon Power staking the request on increasing expenses such as storm repair and general inflation. If passed, average customers would likely see an overall increase of about 15% to their monthly bill. PSC Chairman Charlotte R. Lane said that these matters will be considered in the ongoing rate case.

More information about this case can be found on the PSC’s website here and listed under case no. 23-0270-E-GI