The commission on Tuesday authorized the $123.5 million increase effective immediately for customers of Appalachian Power and Wheeling Power.
The companies had originally requested an increase of 16.5 percent.
The PSC says the average residential customer will see an immediate increase of about $14.30 per month in their bill.
Appalachian Power had said the increase was needed to recover rising costs of maintaining and improving distribution and transmission lines as well as generating plants. Rates had not increased for West Virginia customers since 2011.
Together, the companies serve about 476,600 customers in West Virginia.