Appalachian Power Seeks 11 Percent Rate Increase for Virginia Customers

by Tyler Arnold


Appalachian Power, the second largest electric utility in Virginia, is seeking an 11% increase in rates paid by consumers residing in the commonwealth to pay for electric transmission costs.

If approved, Appalachian Power would increase the Transmission Rate Adjustment Clause from $225.1 million to $337.7 million, which is a $112.6 million increase. It would increase the monthly bill for a customer by $11.52 for every 1,000 kilowatt hours. It would go into effect in July 2021.

The rate change, which was first requested in 2017, would allow the utility to recover the costs for transmission infrastructure improvements. The request would need to be approved by the State Corporation Commission before the increase could be levied.

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

According to a news release, the Rate Adjustment Clauses allow the Appalachian Power to adjust parts of the bill periodically to cover specific costs not included in the base rates.

The utility has 1 million customers in Virginia, West Virginia and Tennessee. It is a subsidiary of American Electric Power.

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Tyler Arnold reports on Virginia and West Virginia for The Center Square. He previously worked for the Cause of Action Institute and has been published in Business Insider, USA TODAY College, National Review Online and the Washington Free Beacon.







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One Thought to “Appalachian Power Seeks 11 Percent Rate Increase for Virginia Customers”

  1. Our Businessman, former Governor, former Senator wanted to “privatize” TVA too!