Nov. 18, 2008-Apco rate hike OK'd. Increase is less than requested but still 19.3%. The State Corporation Commission (SCC) on Monday approved a 19.3 percent rate increase for Appalachian Power Co.
The approved rate was lower than the 23.9 percent increase the company originally requested, but it was more than a 17 percent increase proposed in a settlement last month.
On Oct. 28, Appalachian began charging customers using the 23.9 percent hike it originally requested. The difference between that interim rate and the lower rate approved Monday will be refunded to customers with interest, according to a news release from the SCC.
The increase will allow Appalachian to increase its annual operating revenue by $168 million, the release said. The amount is $40 million less than the $207.9 million base rate increase the company requested in May.
“After a thorough review of the request, Appalachian, the SCC staff, and several parties in the case reached an agreement to lower the request to an increase of 19.3 percent. The commission accepted the agreement,� the release said.
For an Appalachian residential customer using 1,200 kilowatt-hours of electricity a month, the SCC’s order means the monthly bill will be approximately $90.13, or $3.82 less than the current interim rate of $93.95.
The charge before the increase was about $77.
Refunds will appear as a credit on customer bills.
Appalachian serves 30,739 customers in Henry County and 13,239 in Patrick County. The Martinsville Electric Department provides power to city residents.
Source: Martinsville Bulletin, Nov. 18, 2008