Press Article: Virginia Regulators Approve Limited Rate Hike for Appalachian Power
On Wednesday, the Virginia State Corporation Commission (SCC) approved a modest rate increase for Appalachian Power, allowing the utility to boost its annual revenue by $9.768 million over the next two years. The new rates, effective January 1, 2024, represent only over 10% of the $95.1 million increase originally requested by Appalachian Power.
This decision comes after significant pushback from residents, lawmakers, and advocacy groups, many of whom pointed out that recent rate hikes had already increased the average residential bill by roughly $50 in the last two years. Appalachian Power had sought to raise the average customer bill by an additional $10.22, citing the need for improvements in service reliability and operational costs.
Ashley Workman, a spokesperson for Appalachian Power, noted the company is currently assessing how the SCC’s decision will affect customers but expressed satisfaction with the balance achieved between the utility’s financial needs and customer impacts. The utility’s final request was scaled back to $64.2 million before the SCC staff recommended a $47.2 million increase.
Some advocates welcomed the SCC’s ruling. Josephus Allmond of the Southern Environmental Law Center highlighted that the commission had taken customer concerns seriously, especially rejecting a proposed hike in the basic service charge from $7.96 to $9.
The SCC also determined a return on equity of 9.75%, slightly below Appalachian Power’s request for 10.8%. This latest decision follows a comprehensive review process that involved public hearings and extensive feedback from various stakeholders. As the utility navigates rising costs and service challenges, residents remain watchful of how this new rate structure will impact their financial stability moving forward.
Source
Photo credit cardinalnews.org