RICHMOND — The State Corporation Commission (SCC) has approved a two-phase decrease in the fuel rate requested by Appalachian Power Company.
The company’s fuel factor of 2.953 cents per kilowatt-hour (¢/kWh) was reduced to 2.586 ¢/kwh on an interim basis for service rendered on or after October 1, 2015. It will be further reduced to 2.301 ¢/kWh effective for service rendered on or after February 1, 2016.
The revised fuel rate decreased the monthly bill of a residential customer using 1,000 kilowatt hours of electricity by $3.67, or approximately 3.2 percent, effective October 1, 2015, and further decreases it by $2.85, or 2.6 percent, effective February 1, 2016.
The fuel rate is the portion of the electric bill that pays for the cost of fuel used to generate electricity and reflects the wholesale purchase and sales of power.
The fuel rate is reviewed annually by the SCC and re-set, as necessary, to reflect actual fuel expenses for the previous year and projected fuel expenses for the coming year.
Case Number PUE-2015-00088 – Application of Appalachian Power Company to revise its fuel factor