Good news for Appalachian Power customers. You won’t see your rate increase for the next few years.
On Tuesday, the State Corporation Commission denied Appalachian Power’s request to increase rates by about $10 a month for a typical residential customer using 1,000 kilowatt-hours of electricity.
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During the SCC’s triennial financial review of the power company, it found that earned a profit within the range authorized by Virginia utility law for calendar years 2017, 2018 and 2019.
The company’s authorized rate of return on equity during the three-year review period was 9.42 percent. 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 rate of return on equity 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.
The Commission also denied a request to increase the residential basic service charge from $7.96 to $14, as well as the implementation of a residential rate design that would have charged higher rates during summer months and lower rates during the winter.