Appalachian Power requests fuel rate increase for customers in Virginia


Texans who shopped for electricity in 2014 paid more on average than folks who only had one power option. (Photo by Dan Atrill via The Texas Tribune)

ROANOKE, Va. (WFXR) – Appalachian Power has filed its annual fuel factor update this week with the Virginia State Corporation Commission (SCC) and is requesting a fuel rate increase for its Virginia customers.

Fuel costs are the portion of a customer’s bill used to recover the cost of natural gas and coal used in the generation of electricity, as well as the cost of purchased power.

The SCC reviews the company’s fuel rate each year to determine whether it should be increased or lowered.

Fuel costs are approximately 20 percent of a residential customer’s total electric bill.

Appalachian Power says the current fuel factor is 1.999 cents per kilowatt-hour (kWh). Their proposal increases the fuel factor to 2.300 cents per kWh.

For a customer using 1,000 kilowatt-hours in a month, this will result in an approximate increase of $3 per month.

The fuel factor was reduced last year due to lower costs; however, this year’s proposed increase would bring it to the same level as it was in 2019.

If the increase is approved, it would go into effect in November.

The company says that at this point, a residential customer in Virginia that is using 1,000 kWh/month will pay 12.29 cents/kWh for electricity which is below the national average.

According to the U.S. Energy Information Administration, Electric Power Monthly’s Aug. 24, 2021 publication stated that the average residential cost in the United States for electricity was 13.41 cents per kWh.

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