AEP customers not expected to see increase in rates this winter

Local News

Appalachian Power just announced customers in Virginia will not see an increase in rates they pay for electricity during traditionally higher-usage winter months.

In a release, the company said, “This fall, the company implemented an increase to the fuel factor on customer bills. At the same time, it expedited the return of federal income tax-related savings to customers through a credit rider.

“Combined, these two filings with the Virginia State Corporation Commission (SCC) allow us to offset the fuel increase—and in some cases reduce the unit price customers pay during a time when many face higher bills primarily caused by heating needs,” said Brad Hall, Appalachian’s external affairs vice president.

“While some customers may see a higher total bill during the winter months, it will be from increased power consumption and not from rate increases,” Hall added.

Appalachian Power said it makes annual filings with the SCC to adjust collection of its fuel factor—the rate adjustment that covers costs of coal and natural gas used for generation of power.

According to the release, “This year that adjustment would have increased rates about 4-percent.”

The company also filed an accelerated tax rate reduction (ATRR) rider that allows customers to receive savings benefits earlier than its required 2019 implementation.

AEO said, “Customers are already benefiting from an interim reduction in rates due to reduced corporate tax rates implemented in August 2018.”

Customers should see a full-month impact from the changes on their December bills.”

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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