Appalachian Power customers in Virginia to see 24 percent decrease to electric bills

LYNCHBURG, Va. (WSET) — Appalachian Power has announced a significant reduction in electricity costs for Virginia customers, with residential rates set to drop by 24 percent starting November 1.

The company attributes the decrease to lower energy prices and an increase in renewable power sources. Sen. Mark Peake credited recent legislation, co-sponsored with Delegate Jason Ballard, for the reduction, stating it was much needed for those struggling financially.

“We put a lot of focus on it. We passed some legislation to help them out, to help them lower the rate payers’ fees, and it looks like they are able to do that,” Peake said. He said it is going to have a huge impact on people’s bills, especially as we head into winter.

“This looks like a permanent reduction currently because they have been able to lower their fuel costs,” Peake said.

EARLIER: Appalachian Power seeks approval for cost-saving measures to lower customer bills

George Porter, a spokesperson for Appalachian Power, expressed empathy for customers’ financial struggles and satisfaction in providing relief.

“We hear what our customers are feeling about us, and we understand that, you know. We are empathetic to that, so to be able to finally do something in a positive direction for our customers and give them the relief that so many of them desperately need, it’s a great feeling,” Porter said.

The company is seeking approval from the Virginia State Corporation Commission to lower its fuel factor rate from 4.139 cents per kilowatt-hour to 3.133 cents.

For an average household using about 1,000 kilowatt-hours monthly, this translates to a savings of approximately $10 on their bill. The fuel factor, which accounts for natural gas, coal, and purchased power costs, comprises about 20 percent of a typical electric bill. Appalachian Power emphasizes that it does not profit from these fuel costs.

With the new rate, Virginia customers will pay 16.36 cents per kilowatt-hour, slightly below the national average, according to a recent Edison Electric Institute report.