RICHMOND — The State Corporation Commission (SCC) has
set a schedule for its financial review of Appalachian Power Company (APCo) which
includes a review of the earnings produced by the current rates the company charges
for generation, distribution, and transmission services. The company proposes a
number of rate structure changes that the company indicates would not generate any
additional annual operating revenue. The changes, however, may cause some customer
bills to be higher or lower, as a result.
As part of its March 31 filing, the company is proposing to increase the monthly
residential customer charge from $8.35 to $16, a line item charge a customer
pays regardless of the amount of electricity consumed. To offset the increase in
the monthly customer charge, the base rate applied to each kilowatt-hour of electricity
consumed would be adjusted lower accordingly. The company is also seeking to establish
two new residential demand-side management programs and approval of a standby charge
to be applicable to certain customer-generators that net meter.
A Commission decision resulting from an earnings test and other ratemaking and accounting
determinations during this financial review is expected in mid-to-late November
(Case number PUE-2014-00026). Any changes to the rate structures resulting from
that final order would take effect in early 2015.
In addition to the financial review filing, the company also submitted on March
31 a proposal to lower a renewable portfolio standard (RPS) rate rider that, if
approved, is expected to decrease the monthly bill of a residential customer using
1,000 kilowatt-hours of electricity by $1.74. The Commission has set a separate
schedule for that application (Case number PUE-2014-00007).
Any person wishing to submit written comments on the company’s proposed adjustments
may do so electronically by following the instructions on the Commission’s website
If not filed electronically, written comments may be submitted to the Document Control
Center of the Clerk’s Office of the Commission, P.O. Box 2118, Richmond, Virginia
23218. All comments should refer to the proper case number, either PUE-2014-00007
(deadline is August 19, 2014) or PUE-2014-00026 (deadline is September 9, 2014).
The SCC hearing on the RPS rate rider case is set for August 26, 2014. The SCC hearing
on its review of base rates is set for September 16, 2014. Both hearings begin at
Any person wishing to appear as a public witness should arrive early and sign in
with the Commission bailiff. Each hearing will be held in a Commission courtroom
on the second floor of the Tyler Building, 1300 East Main Street in downtown Richmond.
Case number PUE-2014-00007 – APCo RPS rider
Case number PUE-2014-00026 – APCo biennial review of rates, terms and conditions