CHARLESTON, W.Va., Oct. 1, 2009 – The order issued late yesterday by the Public Service Commission (PSC) of West Virginia means Appalachian Power and Wheeling Power residential customers will see an increase in their electric bills of about 26 cents a day.
Residential customers who use 1,000 kilowatt-hours a month will see their monthly bill rise from $72.28 to $80.29, an increase of 11 percent. The increase for other customer classes, like commercial or industrial customers, will vary slightly.
The Commission order grants the companies a combined annual increase in revenues this year of approximately 12 percent or $124.7 million, effective today. Overall, the PSC granted the companies a $355 million increase to be phased in over the next four years.
The increase was part of the companies’ annual adjustment of rates for fuel and purchased power. It also included some expenses for environmental compliance projects, primarily scrubbers at the John E. Amos Plant near Winfield. The increase is a pass-through expense that includes no profit for the company.
Coal prices rose dramatically last year, according to Appalachian Power President and COO Dana Waldo. Although they have stabilized, today’s coal costs are well above what was previously reflected in the fuel portion of rates.
“Although we were disappointed we were not granted the full $398 million we requested, we believe the order is fair and balanced,” Waldo said. “We’re also pleased the PSC accepted our recommendation to phase in the rates over a several-year period.”
Rates for Appalachian’s customers remain among the lowest in the country. The national average price for electricity is 11.3 cents per kilowatt-hour. This increase brings Appalachian rates to 8.0 cents per kilowatt-hour. Customers are urged to manage their energy use wisely and to visit the company’s Internet site (www.WattWhyAndHow.com) for energy-saving tips and access to a free home energy calculator that can help explain how to conserve electricity. The site also provides information on payment options available to customers.
Appalachian Power provides electricity to 1 million customers in Virginia, West Virginia and Tennessee (as AEP Appalachian Power). It is a unit of American Electric Power, one of the largest electric utilities in the United States, with more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined.
MEDIA CONTACT:
Jeri Matheney
Corporate Communications Manager
(304) 348-4130
Cell: (304) 543-1377
jhmatheney@aep.com