Martinsville Bulletin, Inc.
P. O. Box 3711
204 Broad Street
Martinsville, Virginia 24115
Toll Free: 800-234-6575
SCC OKs Appalachian Power rate adjustment
Thursday, March 20, 2014
By BULLETIN STAFF REPORTS -
Appalachian Power Co. customers can expect to see their bills increase in May.
The State Corporation Commission (SCC) said Thursday that it has approved Appalachian’s request to recover $48.6 million in increased costs associated with electric transmission services provided to the utility.
The rate adjustment, called a Transmission Rate Adjustment Clause or T-RAC on customer bills, will become effective in May, according to a news release. The new charge will increase the monthly bill of a residential customer using 1,000 kilowatt hours of electricity by approximately $3.88, or 3.5 percent, the release said.
In a Dec. 18 application, Appalachian requested an increase of $49.9 million. Following an investigation by the SCC’s staff, the company and staff agreed to a lower revenue requirement for the transmission costs of $48.6 million, according to the release.
Under Virginia law, utilities may seek SCC approval to recover, through a rate adjustment clause, certain costs for transmission services provided by a regional transmission entity.