Appalachian Power requests to increase revenue in first rate review application

RICHMOND, Va. (WFXR)– Appalachian Power filed its first review application with the Virginia State Corporation Commission (SCC), including the base rate necessary for the utility to provide reliable electricity for its customers.

Under state law enacted last year, AEP must file a review application every two years. Review applications allow the SCC an opportunity to examine the company’s financial and operational performance, and any request to modify base rates for service.

According to the application filed by AE, the company has requested to increase its revenues by approximately $95 million, or 5.1%.

“We recognize these are challenging financial times and no one wants to experience rising
electric bills,” said Aaron Walker, Appalachian Power president and chief operating officer. “Our
customers need safe and reliable service, and we work hard to meet those expectations while keeping costs as low as possible.”

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The proposed increase will vary depending on a customer’s class and usage. If approved as requested, residential customers may see a net increase in their monthly bill of approximately $10.

According to AEP, the increase in their profit would offset expenses including restoring service during major storms, material and labor, and rising interest rates.

“As demand for electricity increases, we owe it to our customers to make our energy supply
more reliable,” said Walker. “We know trees are the number one cause of outages. With our newly approved program, we’ll be able to enhance our efforts to prevent and reduce the duration of outages in areas that have experienced the most service interruptions.”

Any increase approved by the SCC will not take effect until Jan. 2025.

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