The State Corporation Commission drastically cuts the amount of money that it will allow Appalachian Power to have for a fuel rate increase.
In a news release, the SCC says it sliced APCO fuel rate hike request from $226.8 million to $129.5 million. That's a cut of $97.3 million.
The SCC said in the release it was "concerned about the significant increase in APCO [requested recovery of fuel costs] and its ultimate impact on customer bills, especially in thie time of economic hardship for many people in APCO service territory. APCO however, by law, is entitled to recover it prudently incurred fuel costs."
APCO wants to implement the higher rates from this past July through August of 2010.
The SCC says under the rate hike that it agreed to allow APCO to have, the average residential customer who uses 1,000 kilowatt-hours of electricity per month will pay $7.16 more per month, a jump of 7.7%. Under APCO original request, that hike would've been $12.21 more per month or 13.1%.
The SCC did leave the door open for APCO to file another claim to recover some part of the reduced fuel rate hike at a later date.
In another APCO related decision, the SCC denied APCO the right to recover costs to buy electricity from two wind power projects that were not included in APCO renewable energy program that the SCC approved in 2008. The SCC cited the high cost of the electricity for its reasoning.
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