Appalachian Power wants rate hikes
Published: May 15, 2009
Updated: May 15, 2009
Click here to see full APCO news release, and chart showing how increase could impact you
Appalachian Power (APCO) wants the state to let it increase two rates on your electric bill.
APCO wants the State Corporation Commission (SCC) to let it increase how much the company charges for its “fuel factor,“ as well as the “environmental and reliability surcharge.“
The company believes if the SCC approves the request, it would mean an increase of average of between 13-16% on your electric bill, depending if you are a residential or business customer.
Fuel Factor rate increase request
APCO wants the SCC to let it increase the fuel factor from 2.16 cents per kilowatt hour (kWh) to 3.05 cents per kWh. That would be an increase of more than 41%.
APCO says this increase if approved, would increase the annual amount the company collects from the fuel rate factor by $141.7 million. APCO says the money collected for the fuel rate factor goes to cover the “company’s increasing cost of fuel.“
In a news release, APCO listed these reasons for requesting the rate hike in the fuel factor:
Several reasons are driving the requested increase in the fuel factor: The company’s actual cost of coal is higher than what is in the current fuel factor and fuel costs are expected to remain at an increased level through the proposed new fuel factor period. Additionally, Appalachian has seen a sharp decline in electricity sales it makes to other utilities for a number of reasons, including a slowing economy. Seventy-five percent of the profit from Appalachian’s sales to other utilities benefits Virginia customers in the form of a credit to the fuel factor.
APCO also asked the SCC to take the current economic status into effect:
In recognition of the current economic situation, Appalachian is asking the Commission to reduce the immediate average rate increase for all customer classes from 17 to about 12 percent. Residential customers would see a lower increase in the range of 9 to 10 percent, depending upon usage. Higher-usage customers – including commercial and industrial customers – may see larger increases.
APCO wants the SCC to implement the new fuel factor rate hike starting July 1st.
Environmental and Reliability Surcharge rate hike request
On the second rate hike, APCO wants the SCC to allow it to collect $41 million related to costs on projects that minimize environmental damage, as well as maintenance that reduces the number and length of power outages.
APCO estimates this rate hike, if approved, would increase the overall average bill by 3.5%
Reader Reactions
are we being robbed again by AEP dose aep mean All Empty Pockets WOW TWO RATE INCREASES IN FIVE MONTHS NONONONOWAYYYYYYY
When I moved to my current location 3 years ago my electric bill averaged around $85 per month. Now, it is more than double that and our family size is still the same and we have even added updates to become more energy efficient. It’s hilarious that they put on your bill to inquire about local competitors when there, obviously, aren’t any. When you call AEP regarding your bill they won’t listen and automatically say that it’s right because it’s read by satellite. Interesting how it can increase by $150 dollars for the month of November and they say it’s because of “Christmas lights” 1. I didn’t have any Christmas lights in November or December 2. It went back to being completely normal on the next bill. But, they are right and won’t even research any questions. You are just SOL if you don’t agree! AEP is a horrible company and their customer service STINKS!
Everyone should invest in solar power when possible, and get the do it yourself internet videos. AEP is just plain greedy.
They know they can soak people and have a monopoly and they get away with it.
Electric transmission charges for lines built before you even became a customer account for over half the bill.
What a scam.
This is insane. Apco wants yet another increase, on top of the all the other increases in the last 5 years. My electricity bill is over 125% more than it was 5 years ago, despite less usage, more energy efficient appliances, and being more “green” altogether. Possibly Apco should make an effort to be more efficient, make use of new technologies to actually decrease THEIR costs, and stop gouging consumers. This is a legal monopoly and as consumers we have no viable alternatives.
apco wants another rate increase I SAY NOOOOOOOOOOO!!!!!!!!!!!!!!!!
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