Appalachian Power seeks to raise Virginia fuel levy

Apr 24 - McClatchy-Tribune Regional News - Laurence Hammack The Roanoke Times, Va.

Just as Appalachian Power Co. customers are adjusting to an average 7.4 increase in their electricity bills, another hike could be on the way.

Appalachian announced today that it is seeking to increase the assessment it charges customers to recover higher costs of coal and other fuel.

If approved, the increase would mean another 7 percent increase in monthly bills for residential customers.

The so-called fuel factor is a dollar-for-dollar recovery of the amount utilities pay for power generation and does not offer a profit for Appalachian.

Still, the utility is seeking the increase from the State Corporation Commission shortly after a different set of rate increases took effect.

In February, Appalachian customers saw their bills rise by an average of 7.4 percent, generating an additional $85.1 million in annual revenue to cover costs that include meeting tougher environmental regulations.

"We know that this is difficult," Appalachian Power Co. spokesman Todd Burns said of the prospect of another increase. "We're doing everything we can to keep our costs down."

For example, he said, the proposed increase in the fuel factor would be collected over an extended period of time to help reduce the impact on rates.

The fuel factor increase would take effect in June, subject to SCC approval and review.