ROANOKE, Va. – Appalachian Power, a utility subsidiary of American Electric Power (NYSE: AEP) which provides electric service to residents in both Patrick and Carroll counties, earlier this month requested a rate reduction when the company filed its annual fuel factor update with the Virginia State Corporation Commission (SCC).
The company said a residential customer using about 1,000 kWh/month would see a drop of $3.01 in their monthly bill.
The company said the reduction is a result of a drop in the utility’s fuel costs.
“Managing fuel costs is an important part of service delivery,” said Chris Beam, Appalachian Power’s president and chief operating officer. “What we’ve witnessed over the past several months is a drop in natural gas costs. Our request before the SCC ensures that approximately $40 million in savings is passed along to our customers.”
The current fuel factor is 2.3 cents per kilowatt-hour (kWh). Appalachian’s proposal reduces the fuel factor to 1.999 cents per kWh.
If approved, the reduction will go into effect in November. With the adjustment, Virginia residential customers using 1,000 kWh/month will pay 10.6 cents/kWh, which is below the national average. According to the Edison Electric Institute’s (EEI) January 2020 report, the average residential U.S. cost for electricity is 12.93 cents per kWh.
Appalachian Power has 1 million customers in Virginia, West Virginia and Tennessee. It is part of American Electric Power, which is focused on building a smarter energy infrastructure and delivering new technologies and custom energy solutions.
Source: https://www.mtairynews.com