RICHMOND — The State Corporation Commission (SCC) has
approved a new fuel rate requested by Appalachian Power Company that will take effect
on June 22, 2012.
The new fuel rate is 2.953 cents per kilowatt-hour (¢/kWh), which represents an
increase of 0.756 ¢/kWh from the fuel factor of 2.197¢/kWh established by the Commission
in 2010. For the average residential customer, the fuel rate increase means the
monthly bill for 1,000 kilowatt-hours of electricity will increase $7.56, or approximately
The Commission has also approved Appalachian’s proposal of a longer period for collecting
its under-recovery balance of expenses.
The SCC found that “… given the significant rate impact of the level of projected
fuel expenses in the proceeding, the Company’s proposed mitigation measure to recover
its deferred fuel balance over a twenty-four month period is reasonable.”
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 Commission 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-2012-00051