Appalachian Power Requests $65 Million Rate Hike for Electric Service in Virginia

Appalachian Power Company filed an application for a triennial review of its electric service rates, seeking an increase of $65 million in its annual revenue requirement, according to an April 13 notice from the Virginia State Corporation Commission. The change represents a five percent hike in overall revenues, and would raise residential rates by about 6.5 percent over the rates in effect as of March 31.

The proposed revenue hike comprises a $26.9 million decrease in the generation function and a $91.9 million increase in the distribution function. The company said that current rates were set based on a 2010 test year, and that revenues must be reallocated across generation and distribution, based on its class cost of service study. The rate change reflects Appalachian Power’s requested authorization of a 9.9 percent return on equity.

Comments are due by Sept. 8. A hearing is scheduled for Sept. 14 to receive opening statements, testimony, and evidence from the company, respondents, and commission staff.

Appalachian Power is a subsidiary of American Electric Power Company Inc.