RICHMOND, Va. (WFXR) — Appalachian Power Company has earned a rate of return (profit) that is within the range of authorized by Virginia utility law for the calendar years 2017, 2018 and 2019.
The State Corporation (SCC) made the finding following a triennial review of finances from the company in which it was seeking an increase in rates.
The order means Appalachian Power does not receive a rate increase, which also means customers will not be receiving refunds.
Appalachian Power was seeking to increase rates by approximately $10 per month for typical residential customers using 1,000-kilowatt hours of electricity.
The company’s authorized rate of return on equity during the three-year review period was 9.42-percent.
After reviewing the company’s expenses and revenues during that period, the SCC determined that Appalachian Power earned slightly above that level.
The Commission also set a new authorized rate of return on equity of 9.2-percent which will be used to evaluate the company’s earnings during the next triennial financial review case in 2023.
It will also set the return used for any new rate riders or adjustments to existing riders.
The Commission also made the following determinations in its final order:
- SCC denied the company’s request to apply the 2015 planned retirements of three coal-fired power plants to 2019 earnings
- SCC denied a request to increase the residential basic service charge from $7.96 to $14.
- SCC denied the implementation of a residential rate design that would have charged higher rates during summer months and lower rates during winter months. The company will continue charging the same residential rate year-round.
- SCC approved voluntary energy efficiency rate schedules to provide residential customers with pricing signals that shift consumption to hours when demand is less, and prices are lower (Smart Demand and Time-of-Use).