APCo Requests Lower Electric Rates
Appalachian Power this week filed a request with the Virginia State Corporation Commission (SCC) to lower the electric transmission cost for customers. The transmission rate adjustment clause, known as the T-RAC, is the portion of a customer’s bill that recovers costs for transmission services, fees and new construction.
Transmission costs to improve grid reliability and accommodate load growth are determined by PJM, the independent regional transmission organization that manages the electric grid in 13 states, including Virginia. Costs allocated to Appalachian Power decreased and the lower cost is being passed on to customers.
Appalachian Power is currently recovering about $413.2 million annually in its T-RAC as approved by the SCC in 2023. In its filing, the company requested to decrease that amount by $37 million. If approved by the Commission, the change would decrease the monthly bill for a residential customer using 1,000 kilowatt-hours by $2.12. The new rate would become effective in early October.
“Appalachian Power works hard to manage costs and ensure filings are made in a timely manner,” said Aaron Walker, Appalachian Power president and chief operating officer. “When costs allocated by PJM were lowered, we took the necessary steps to update the commission and request a change to customer bills.”
Appalachian Power has 1 million customers in Virginia, West Virginia and Tennessee (as AEP Appalachian Power). It is part of American Electric Power, which is focused on building a smarter energy infrastructure and delivering new technologies and custom energy solutions. AEP’s approximately 17,000 employees operate and maintain the nation’s largest electricity transmission system and more than 225,000 miles of distribution lines to efficiently deliver safe, reliable power to nearly 5.6 million customers in 11 states. AEP is also one of the nation’s largest electricity producers with nearly 29,000 megawatts of diverse generating capacity, including approximately 6,100 megawatts of renewable energy.
