Appalachian Power proposes rate increase

Appalachian Power (AEP) has submitted a request to the State Corporation Commision (SCC) to increase customer rates to defray the cost of renewable energy projects and to keep their current coal and natural gas plants compliant with environmental regulations.

Energy bills would go up an average of $6.63 per month, a 3.8% increase. Energy bills from AEP have increased by about $50 since July of 2022.

This comes amid a push by AEP to have a carbon free portfolio by 2050, a requirement under the Virginia Clean Economy Act signed into law back in 2020. The company is hoping to recover almost $69 million in costs associated with these projects, which are either currently producing electricity or will be within the next two years.

In a second request, AEP is trying to recover an additional $60.6 million spent on ensuring coal and natural gas plants meet Virginia and federal environmental regulations.

The utility is also working to get approval to continue evaluating a site in Campbell County for a small modular nuclear reactor (SMR). However, there are currently no commercial SMRs used in the U.S.

In a statement, AEP President and COO Aaron Walker defended the projects and subsequent increases.

“These filings with the Virginia State Corporation Commission underscore our dedication to maintaining a resilient and reliable electric grid and also meeting the state’s renewable energy mandates,” Walker said. “We recognize the importance of delivering reliable and affordable energy to our customers.”

The SCC must approve these rate increases next. They can approve, deny or even lower the increase with their ruling. AEP said in a statement that these proposed costs wouldn’t take effect before March 1st, 2026, and they intend to pursue future action to mitigate rate impacts on customers.