Appalachian Power files rate requests with Virginia regulators

In two filings with the SCC, Appalachian proposes updating rate adjustment clauses that recover specific costs, such as environmental and generation costs, for a specified time

Appalachian Power filed for rate changes to address increased generation and environmental costs. If approved by the Virginia State Corporation Commission (SCC), the changes would equate to an increase of about 1.5 percent above today’s residential electric rate in Virginia and will take effect early next year.

In two filings with the SCC, Appalachian proposes updating rate adjustment clauses that recover specific costs, such as environmental and generation costs, for a specified time.

Recently RACs capturing historic costs expired, or lagged in recovering actual expenses, and they are being updated with RACs that capture more current and future expenses. While the company is seeking an increase of about 4 percent in the filings, that percentage increase will be largely offset as existing surcharges expire.

Beginning in April customers will see a decrease in rates for several months before they return to near current levels in early 2014, according to the utility.

Currently, a customer using 1,000 kWh a month pays 11.22 cents per kWh, excluding taxes. In April that rate will fall to 10.98 cents per kWh when an environmental RAC expires. If the SCC approves the company’s requests, the rate will go back up to 11.39 cents per kWh early next year.

Appalachian Power has 1 million customers in Virginia, West Virginia and Tennessee (as AEP Appalachian Power). It is a unit of American Electric Power, one of the largest electric utilities in the U.S., which delivers electricity to more than 5 million customers in 11 states.

AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 MW of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kV extra-high voltage transmission lines than all other U.S. transmission systems combined.

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