Mon Power and Potomac Edison Request Rate Review, Proposing Two Paths to Support Reliability Investments

Rhea-AI Summary

FirstEnergy (NYSE: FE) subsidiaries Mon Power and Potomac Edison requested a West Virginia PSC rate review, proposing two options to fund reliability and infrastructure investments while limiting bill shocks.

One inflates-and-invests plan seeks a $76M adjustment via two smaller increases; a traditional base-rate option seeks $188M, including a larger reliability program. Residential rates are expected to remain low versus other regulated utilities in West Virginia, supporting upgrades that have already cut transmission outage duration by 43.8% and reduced rural outage time by about four hours a year.

AI-generated analysis. Not financial advice.

Positive

• Inflation-based plan seeks $76M via two $38M annual adjustments
• Proposed increases limited to about 3% and 2.9% for residential customers
• Alternative base-rate option would provide $188M for reliability and infrastructure
• Transmission upgrades cut outage duration in West Virginia by 43.8%
• 2024 rural reliability pilot reduced outage time by four hours annually, a 53% drop
• Company would not seek another rate review until April 2028 under inflation plan

Negative

• Average residential bills could rise about 3% and 2.9% under inflation option
• Traditional base-rate proposal implies about 13.9% higher residential bills
• Total requested revenue increase up to $188M under base-rate scenario
• All proposed rate changes remain subject to PSC review and potential modification

Residential rates would remain among the lowest in the region

FAIRMONT, W.Va., May 18, 2026 /PRNewswire/ -- Mon Power and Potomac Edison, subsidiaries of FirstEnergy Corp. (NYSE: FE), have asked the Public Service Commission of West Virginia (PSC) to review electric rates so the companies can keep investing in a safe, reliable electric system that is better prepared for severe weather, while keeping costs in mind.

The filing includes two options. One is an inflation-based approach that would spread smaller increases over time instead of one larger increase, giving customers more predictability. The other is a traditional rate adjustment based on work already completed to strengthen the electric system and includes a proposed program focused on reliability and future infrastructure investments.

Work completed in recent years includes:

• Upgrades that have reduced the length of outages tied to the high-voltage transmission system in West Virginia by 43.8%.
• Improvements to key equipment at the Fort Martin and Harrison power stations to help keep power generation safe and reliable.
• Upgraded poles, power lines and equipment to help the system better withstand storms.

Under either option, residential customers would continue to pay the lowest rates among West Virginia's regulated electric utilities. Both proposals would support continued work on power plants, transmission lines and local equipment to help prevent outages and shorten the ones that do happen.

Chris Beam, FirstEnergy's President of West Virginia and Maryland: "Our customers count on us every day, especially when the weather is at its worst. This rate review would help us keep improving an aging system by making it more resilient so we can restore power faster when outages happen. We also know customers are watching costs closely, so we're focused on making smart investments that improve service and provide long-term value."

Inflation and Investment Adjustment
Mon Power and Potomac Edison are asking the PSC to consider an inflation and investment rate adjustment similar to an approach recently allowed in another utility case. The approach would spread smaller increases over time to help cover investments and inflation instead of a single, larger charge, providing more predictability for customers while supporting continued investments in the electric system.

The companies are proposing an adjustment of $76 million, with annual $38 million adjustments effective August 1, 2026, and June 1, 2027. For an average residential customer, this would result in a proposed monthly bill increase of about 3% and 2.9%, respectively. Under this proposal, the companies would not seek another rate review until April 2028.

Base Rate Adjustment
As an alternative, under the traditional approach, Mon Power and Potomac Edison have proposed an adjustment of $188 million. The figure includes funding for a reliability and infrastructure improvement initiative to replace older equipment and add new technology to reduce the number and length of outages. It builds on a PSC-approved pilot launched in 2024 that has already cut outage time for customers in rural communities by about four hours a year on average – a 53% reduction.

For an average residential customer, the traditional rate adjustment would result in a proposed increase of about 13.9%.

Independent Review by PSC
Mon Power and Potomac Edison remain committed to managing costs responsibly and making smart investments that benefit customers. Rate changes must be reviewed and approved by the Public Service Commission before they can take effect. The review process gives the PSC an opportunity to closely examine the proposal and its impact on customers.

Mon Power serves about 395,000 customers in 34 West Virginia counties. Follow Mon Power at mon-power.com, on X @MonPowerWV, and on Facebook at facebook.com/MonPowerWV.

Potomac Edison serves about 155,000 customers in the Eastern Panhandle of West Virginia. Follow Potomac Edison at potomacedison.com, on X @PotomacEdison, and on Facebook at facebook.com/PotomacEdison.

FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its electric distribution companies form one of the nation's largest investor-owned electric systems, serving more than six million customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy online at firstenergycorp.com and on X @FirstEnergyCorp.

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SOURCE FirstEnergy Corp.

FAQ

What rate review did FirstEnergy’s Mon Power and Potomac Edison request in May 2026 (FE)?

Mon Power and Potomac Edison asked the West Virginia PSC to review electric rates to fund reliability and infrastructure investments. According to FirstEnergy, the filing presents two alternative rate adjustment paths aimed at spreading costs and maintaining comparatively low residential rates.

How much is the inflation and investment rate adjustment Mon Power and Potomac Edison proposed (FE)?

The inflation-based option requests a total adjustment of $76 million. According to FirstEnergy, this would be implemented as two $38 million annual increases effective August 1, 2026, and June 1, 2027, supporting ongoing system upgrades and inflationary costs.

What bill impact would FirstEnergy’s inflation-based rate plan have on FE residential customers in West Virginia?

For an average residential customer, the inflation plan implies bill increases of about 3% and then 2.9%. According to FirstEnergy, this approach is intended to spread smaller increases over time and provide more predictable electric costs for households.

What is included in the $188 million traditional base rate proposal from Mon Power and Potomac Edison (FE)?

The traditional base-rate option totals $188 million and funds a reliability and infrastructure initiative. According to FirstEnergy, it would replace older equipment and add new technology, building on a 2024 pilot that cut rural outage time by about four hours annually.

How would the traditional base rate adjustment affect residential electric bills for FE customers?

Under the traditional option, average residential bills would rise by about 13.9%. According to FirstEnergy, this higher single adjustment helps finance a larger reliability and infrastructure program designed to reduce both the frequency and length of power outages.

What reliability improvements have Mon Power and Potomac Edison already achieved before this 2026 rate request (FE)?

Prior investments have reduced high-voltage transmission outage duration in West Virginia by 43.8%. According to FirstEnergy, a PSC-approved 2024 pilot has also cut rural customers’ outage time by about four hours per year on average, a 53% reduction.

Will FE residential rates in West Virginia remain competitive under the proposed Mon Power and Potomac Edison changes?

According to FirstEnergy, residential customers would continue paying the lowest rates among West Virginia’s regulated electric utilities. The company states both rate options are designed to maintain comparatively low bills while funding critical reliability and infrastructure investments.