New bill could lower Appalachian Power rates

The APCo Rate Reduction Act was passed unanimously in both chambers of the general assembly. It has multiple strategies all aimed towards lowering rates.

“Utility bills in Virginia overall, it doesn’t matter where you live, it doesn’t matter who your power provider is. They’ve been going up and are projected to continue to go up,” said Delegate Israel O’Quinn.

One of the largest parts of the bill is implementing securitization. This allows Appalachian Power to refinance over a longer time with lower interest saving nearly two billion dollars.

“So, it’s roughly $1.8 billion, in raw terms for an average residential customer it’s about 13-15% reduction in their utility bills,” said O’Quinn.

Customer Kathy Mullins says she knows many people who have struggled to pay with current rates.

“Honestly, I believe everyone who has Appalachian Power has been struggling to pay their bills. I have some friends who last winter had to use heating stoves and their ovens to stay warm,” Mullins said.

The bill would also allow for the company to lower rates in the winter and open public comment any time there is a rate change. This would give people like Mullins a chance to express their concerns.

“My heart goes out to everyone who worked their whole life,” Mullins said. “They have to make decisions between paying the power company and eating.”

The bill still needs to be approved by the State Corporation Commission. The SCC has a four-month deadline to review.

“It’s going to be a significant decrease in bottom line utility bills and hopefully something that is going to help a lot of people in Southwest Virginia,” O’Quinn said.

O’Quinn says people who worry their home’s structure could be leading to higher power rates, can apply for a weatherization check on Appalachian Power’s website.

Appalachian Power sent WCYB this statement about securitization, “Securitization is a financial tool that groups unrecovered costs, such as major storms, coal and natural gas expenses and power plant investments, and spreads them out over an extended period. It’s like refinancing a home to make the payments more manageable and smaller. We looked at this as an alternative option because, with costs continuing to rise across many industries, we understand the immediate need to find creative solutions that lessen the impacts on our customers while still allowing us to invest in sustainable energy solutions for our communities.”