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Appalachian Power files first Biennial Rate Review application under new Virginia law

Customers count on Appalachian Power every day to deliver the energy needed to power their lives. The company’s biennial rate review application filed today with the Virginia State Corporation Commission (SCC) includes the base rates necessary for the utility to continue to provide safe and reliable electricity for its customers.

Appalachian Power files first Biennial Rate Review application under new Virginia law
AEP truck servicing power lines in Henry County

Appalachian Power must file every two years for a base rate review under state law enacted last year. This is the utility’s first application under the new state law, which required the company to make its initial filing in 2024. Reviews are an opportunity for the SCC to examine the company’s financial and operational performance, and any request to modify base rates for service.

The SCC conducted its last review of Appalachian Power’s rates and earnings in 2023. In the application filed today, the company requests to increase revenues by approximately $95 million, or 5.1 percent.

“We recognize these are challenging financial times and no one wants to experience rising electric bills,” said Aaron Walker, Appalachian Power president and chief operating officer. “Our customers need safe and reliable service, and we work hard to meet those expectations while keeping costs as low as possible.”

Appalachian Power’s rates are regulated by the Virginia SCC. In its application, the company outlined the factors that contributed to its request to modify rates. These include cost recovery for restoring service during major storms, increases in capital, material and labor costs, and rising interest rates. The application also fully incorporates the costs associated with the company’s SCC-approved vegetation management program to improve service reliability for customers in areas prone to tree-related outages.

“As demand for electricity increases, we owe it to our customers to make our energy supply more reliable,” said Walker. “We know trees are the number one cause of outages. With our newly approved program, we’ll be able to enhance our efforts to prevent and reduce the duration of outages in areas that have experienced the most service interruptions.”

Appalachian Power has approximately 540,000 customers in southwest, central and southside Virginia. The proposed increase will vary depending on customer class and usage. If approved as requested, residential customers using 1,000 kilowatt hours (kWh) a month will see a net increase in their monthly bill of approximately $10. Any increase approved by the SCC will not take effect until January 2025.

Appalachian Power has 1 million customers in Virginia, West Virginia and Tennessee (as AEP Appalachian Power). It is part of American Electric Power, which is focused on building a smarter energy infrastructure and delivering new technologies and custom energy solutions. AEP’s approximately 17,000 employees operate and maintain the nation’s largest electricity transmission system and more than 225,000 miles of distribution lines to efficiently deliver safe, reliable power to nearly 5.6 million customers in 11 states. AEP is also one of the nation’s largest electricity producers with nearly 29,000 megawatts of diverse generating capacity, including approximately 6,100 megawatts of renewable energy.

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