Appalachian Power seeks increase in Virginia transmission costs

Local News

ROANOKE, Va. (WFXR) — In hopes of recovering electric transmission costs, Appalachian Power filed a request with the Virginia State Corporation Commission (SCC) last week for a rate change — the first sought by the company since 2017 — for transmission infrastructure improvements.

In its filing from Friday, March 5, Appalachian Power says it requested to increase the authorized Transmission Rate Adjustment Clause (T-RAC) from $225.1 million to $337.7 million.

According to the company’s announcement on Monday, March 8, the T-RAC recovers costs for transmission services, fees, and new construction.

“Appalachian is making significant investments in transmission infrastructure to improve grid reliability and accommodate the anticipated growth in renewable generation,” Appalachian Power said in Monday’s statement.

If the Virginia SCC approves the rate change, the monthly bill for a residential customer using 1,000 kilowatt-hours will increase by $11.52 — approximately 11 percent — starting in July, Appalachian Power says.   

Rate adjustment clauses (RACs) allow Appalachian to adjust parts of the bill periodically for specific costs not included in base rates. This month’s filing was made to cover an increase in Network Integration Transmission Service (NITS) Charges administered by PJM, and an anticipated decline in revenues in the company’s base rate charges. PJM is the independent regional transmission organization that manages the electric grid in 13 states, including Virginia.

Appalachian Power

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