RICHMOND — The State Corporation Commission (SCC) has authorized a surcharge for Appalachian Power Company (APCo) to pay for environmental compliance and reliability costs. The surcharge, which appears as a separate line item on the bill, can be adjusted annually.

The Commission accepted a stipulation agreed to by various case participants that allows a net increase in the surcharge of approximately $30 million. The approved amount is $12.7 million less than the company sought.

In its order, the Commission said that it recognizes that many people and businesses in APCo’s service territory “are suffering from economic hardship and any rate increase is burdensome. Under Virginia law, however, the company is authorized to recover costs reasonably incurred to comply with environmental requirements, which are a significant portion of this rate increase.”

The surcharge adjustment will apply to service on and after January 15, 2010. The impact on a residential electric bill will be less than two percent, adding an estimated $2.28 to the monthly bill of a customer using 1,000 kilowatt-hours of electricity.

The surcharge is separate from a utility’s base rates. A base rate case for APCo is pending before the Commission with a hearing set to begin on March 16, 2010 (case number PUE-2009-00030).

###

Case Number PUE-2009-00039 - APCo environmental and reliability surcharge adjustment

View Order