Appalachian Power denied rate increase
RICHMOND, Va. (WDBJ/State Corporation Commission Release) - Appalachian Power has been denied a rate increase
The State Corporation Commission says Appalachian has earned a profit that is within the range authorized by Virginia utility law for calendar years 2017, 2018 and 2019. That finding came after a triennial financial review of the company.
The SCC order means Appalachian Power does not receive a rate increase, and customers are not due refunds. The company wanted to increase rates by about $10 per month for a typical residential customer using 1,000 kilowatt hours of electricity, according to the SCC.
The company’s authorized profit during the three-year review period was 9.42 percent, according to the SCC. After reviewing the reasonableness of the company’s expenses and revenues during the period, the commission determined the company earned slightly above that level.
The commission also set a new authorized profit of 9.2 percent. That is the rate that will be used to evaluate the company’s earnings during the next triennial financial review case in 2023.
In its final order, the Commission made the following determinations:
- denied the company’s request to apply the 2015 planned retirements of three coal-fired power plants to 2019 earnings.
- denied a request to increase the residential basic service charge from $7.96 to $14.
- denied implementation of a residential rate design that would have charged higher rates during summer months and lower rates during the winter. The company will continue charging the same residential rate year-round.
- 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).
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