November 21, 2024 - Attorney General Miyares Issues Statement Regarding SCC's Final Order on Appalachian Power Rate Case

Attorney General Miyares Issues Statement Regarding SCC's Final Order on Appalachian Power Rate Case

RICHMOND, VA - Attorney General Jason Miyares issued the following statement today regarding the Virginia State Corporation Commission's (SCC) final order on Appalachian Power Company's (APCo) request for another significant increase in its electric rates:

"While this office's division of consumer counsel argued for a rate decrease, today's decision ensures that the increase in rates is far more modest than what was initially requested," said Attorney General Jason Miyares.

"Thankfully, the State Corporation Commission recognized the economic hardship experienced by many Appalachian Power customers and the need to mitigate future rate increases. I am committed to protecting Virginians from unjustified and unreasonable rate hikes and will continue advocating to ensure any utility rate changes are fair, transparent, and ultimately in the best interests of Virginia consumers. While I hoped to keep Appalachian Power customers' bills from increasing at all in this case, the SCC's Order demonstrates that this Office speaking up for consumers is essential to reining in electric rates."

Highlights from the SCC ruling include:

• The bottom-line annualized increase in base rates approved by the State Corporation Commission was $9.768 million and far less than the $95.1 million first requested by Appalachian Power (later adjusted to $78.3 million).
• The SCC reduced Appalachian Power's requested authorized return on equity profit margin of 10.8% down to 9.75%, more consistent with consumer counsel's recommendation. This represents a $22 million reduction to the company's overall requested revenue increase.
• The SCC rejected Appalachian Power's request to increase its present $7.96 monthly fixed residential customer charge to $9.00.
• The SCC maintained Appalachian Power's current revenue apportionment among various customer classes. This ensures residential customers do not shoulder an outsized portion of the revenue increase.
• The SCC also agreed with consumer counsel on several recommendations that did not impact rates in this case but should serve to benefit customers in future cases.

Click here for a copy of the SCC final order.

# # #