Expect your Appalachian Power bill to go up in May. State regulators announced Thursday that they have approved a rate increase for the utility.
The new charge will increase the monthly bill of a residential customer using 1,000 kilowatt hours of electricity by about $3.88. Appalachian Power previously said that the average bill for a residential customer consuming 1,000 kilowatt hours per month is $111.01, according to the Associated Press.
Appalachian Power filed a request in December with the State Corporation Commission to recover $49.9 million in “increased costs associated with electric transmission services provided to the utility,” the SCC wrote. The SCC approved $48.6 in recovery.
The rate increase will go into effect in May.
Here is the statement from the Virginia State Corporation Commission:
The State Corporation Commission (SCC) has approved a request by Appalachian Power Company (APCo) to recover $48.6 million in increased costs associated with electric transmission services provided to the utility.
The rate adjustment, called a Transmission Rate Adjustment Clause or T-RAC on customer bills, will become effective in May. The new charge will increase the monthly bill of a residential customer using 1,000 kilowatt hours of electricity by approximately $3.88 or 3.5 percent.
In a December 18, 2013, application, APCo requested an increase of $49.9 million. Following an investigation by the Commission’s staff, the company and staff agreed to a lower revenue requirement for the transmission costs of $48.6 million.
Under Virginia law, utilities may seek SCC approval to recover, through a rate adjustment clause, certain costs for transmission services provided by a regional transmission entity.