Appalachian Power requests fuel factor decrease to lower customer bills - WDBJ

Appalachian Power requests fuel factor decrease to lower customer bills

ROANOKE, Va. (WDBJ) - Appalachian Power (APCo) has submitted a new proposal that will change how much you pay for electricity.

Under the proposed interim fuel factor rate, customers would see a decrease of $1.80 per 1,000 kilo watt hours (kWh).

The company says even a few dollars back can help during the winter months.

Appalachian Power’s interim fuel factor rate goes into effect on Wednesday, November 1. The fuel factor covers two things; the price of gas and APCo’s deferral balance of $273,125,395.

“The company spent out more than they anticipated to generate electricity to buy that natural gas and that coal,” spokesperson Teresa Hamilton Hall said. “The company is allowed to collect dollar for dollar what it costs to generate electricity, so that deferred balance is what you’re collecting for what the company spent, but hadn’t been recovered yet.”

Hamilton Hall explained the reason behind the lower fuel rate is to spread the deferral balance over two years instead of one.

“That’s to minimize the cost to customers,” Hamilton Hall said. “That’s where that decrease is coming from.”

This fuel factor decreased rate proposal comes one year after the company requested to increase the fuel factor, costing customers an additional $20 per 1,000 kWh.

Hamilton Hall explained the cost of fuel has stayed steady since 2022, so customers will start to see small changes.

“The fuel rate is made up of the cost of coal and natural gas and those are the markets that we’re continually monitoring because we want to do everything we can to minimize costs for customers,” Hamilton Hall said.

As inflation has pushed the cost of living up over the last year, Hamilton Hall explained small savings still count.

“Anytime you have a decrease in the bill it’s going to help a customer,” Hamilton Hall said. “Sometimes it may be $0.50, $0.75, $2 or more, but it’s always going to be a help, especially during those winter months.”

Customers can also comment on the rate decrease proposal and share their thoughts with the State Corporation Commission until January:

- Members of the public interested in registering to speak as a public witness on the case must inform the Commission of their intent no later than January 10, 2024, through an emailed form ( PDF link to the form) or by calling 804-371-9141.
- Public comments from registered public witnesses are scheduled be heard by phone January 17, 2024.
- Written comments will be accepted through January 10, 2024. They can be submitted online via this form, by email, or by letter.
- To be considered as part of this case, public comments must reference the case number; the forms above already include the number for this case. The case number is PUR-2023-00156. ( Link to the order.)
- Note that all public comments are part of the case file and will be accessible to the public through the SCC’s website via the DocketSearch.

APCO also offers customers a free home assessment to make energy efficient changes that could help families save on their heat bills in the winter.

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