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Appalachian Power, Wheeling Power seek $191 million Mitchell Plant upgrade; rate increase proposed for customers

Lootpress News Writer by Lootpress News Writer
Friday, February 20, 2026 10:05 am
PSC issues notice for rate hike for Appalachian Power and Wheeling Power Customers

CHARLESTON, WV (LOOTPRESS) – Appalachian Power and Wheeling Power are seeking approval from state regulators for a major project aimed at extending the life of a coal-fired power plant in Marshall County, a move that could slightly increase monthly electric bills for customers across West Virginia.

The utilities, both subsidiaries of American Electric Power, filed an application Wednesday with the West Virginia Public Service Commission requesting authorization for a $191 million project at the Mitchell Power Plant near Moundsville.

The proposal centers on replacing a deteriorating cooling tower at Unit 2 of the plant, which officials say has experienced ongoing structural cracking and deterioration.

If approved, the companies estimate the project would add just over $1 per month to the average residential electric bill.

Commercial customers could see an increase of about $3.27 per month, while industrial and special contract customers would face larger increases tied to their higher usage levels.

The Mitchell plant, co-owned by Wheeling Power and Kentucky Power, has a total generating capacity of 1,560 megawatts, with Unit 2 capable of producing up to 790 megawatts.

Appalachian Power, while not an owner or operator of the facility, is listed as a co-applicant due to its shared rate structure with Wheeling Power. The utilities serve customers in 25 counties across the state.

Under the proposal, a new mechanical draft cooling tower would be constructed to replace the existing Unit 2 tower, which would then be partially demolished. The companies’ share of the total cost is estimated at approximately $95.5 million, representing the portion allocated to West Virginia customers.

The expense would be recovered through the companies’ Environmental and New Generation surcharge.

According to the filing, structural concerns with the cooling tower were first documented in 2016 after plant personnel observed unusual deformations. Subsequent engineering reviews determined the damage likely began years earlier and identified additional cracking and surface deterioration.

A monitoring and inspection program was later implemented following a third-party analysis.

Reinforcement work on the tower began in 2024, but contractors uncovered more extensive cracking and deterioration in 2025, leading to delays and rising costs. The companies concluded the tower cannot continue operating safely in its current condition.

Construction on the replacement tower is expected to begin in November 2026, with the project slated for completion in 2029. The new tower is projected to enter service in the second quarter of 2028, allowing the 55-year-old plant to continue operating beyond its current expected retirement date of 2040.

The utilities also noted they applied for federal funding through a Department of Energy grant program intended to support coal plant recommissioning and retrofitting, but were recently notified that their application was not selected for funding.

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