(The Center Square) – Appalachian Power’s latest Virginia rate increase request is renewing debate over electricity affordability as regulators begin reviewing the company’s proposal for higher base rates.
Appalachian Power Company filed its 2026 biennial base rate review with the Virginia State Corporation Commission on May 29, requesting a $61.4 million increase tied to reliability projects, storm recovery costs, inflation, labor expenses and state-mandated programs.
According to the company, a residential customer using 1,000 kilowatt-hours of electricity per month would see a net monthly increase of about $9.10 after securitization savings under the APCo Rate Reduction Act are applied. Any approved increase would not take effect until March 2027.
APCo said the request represents its lowest Virginia base rate increase proposal in nearly 30 years.
APCo President and Chief Operating Officer Brian Abraham said the securitization law helped “lessen the impact of bill increases” for customers and reduce the impact of rate changes by almost half.
The filing quickly drew criticism from Clean Virginia, an advocacy group, which urged the SCC to reject Appalachian Power’s request to increase its authorized return on equity, or ROE. Clean Virginia said the company is seeking to raise its authorized ROE from 9.75% to 10.5%.
The SCC set APCo’s current authorized 9.75% ROE in its November 2024 final order in the utility’s previous biennial rate review.
Clean Virginia also pointed to long-term electricity cost increases in southwest Virginia, claiming APCo residential rates increased 159% between 2007 and 2024.
The latest request follows a series of recent rate increases for customers in southwest Virginia.
The SCC’s November 2024 final order noted that APCo’s 2023 triennial rate review added about $16.03 per month for a typical residential customer using 1,000 kilowatt-hours of electricity. Additional rate changes approved in the utility’s 2024 biennial review took effect Jan. 1, 2025.
The SCC is expected to review the filing through public hearings, testimony and additional analysis before issuing a final decision.
The filing comes months after lawmakers introduced legislation aimed at tightening oversight of Appalachian Power’s rates and affordability standards during the utility’s 2026 review.
House Bill 1075, introduced by Del. Sam Rasoul, D-Roanoke, would have directed the SCC to consider affordability standards and review Appalachian Power’s fixed resource requirement alternative, storm resilience spending and reliability costs during the 2026 review process.
The bill passed the House 85-12 before being continued to 2027 by the Senate Commerce and Labor Committee.
The SCC has not yet issued a final ruling on Appalachian Power’s latest rate request.
