Many Appalachian Power customers will see slight bill increase

Published: Aug. 23, 2021 at 5:24 PM EDT
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RICHMOND, Va. (WDBJ) - The monthly bill of a typical Appalachian Power residential customer will increase by $2.17 starting October 1.

That’s according to the Virginia State Corporation Commission, which has approved in part, and denied in part, an environmental rate adjustment clause. The clause is designed to recoup “environmental compliance expenses associated with federal rules regulating the disposal of coal ash at two of the company’s power plants located in West Virginia,” according to the SCC.

The power plants, Amos and Mountaineers, are coal-fired generation facilities that produce electricity to serve Appalachian Power’s Virginia customers.

The SCC approved a $27.44 million Virginia revenue requirement for the first year of the clause, which will be adjusted annually to reflect actual and projected expenses associated with compliance costs.

However, the SCC denied about $4.2 million of expenses associated with Appalachian Power’s proposed investment in the Amos and Mountaineer power plants to comply with the Environmental Protection Agency’s Steam Electric Effluent Limitations Guidelines. The Commission found Appalachian Power “did not meet its burden of proving the reasonableness and prudence of these costs at this time.”

In its final order, the Commission said, “We find it is critically important to analyze the overall impact of this investment on both customer rates and reliability, and that [for this specific expense] the instant record is currently lacking in both regards.”

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