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Appalachian Power seeks rate increase for transmission improvement costs

DW Keefer's picture
Journalist Independent Journalist and Analyst

DW Keefer is a Denver-based energy journalist who writes extensively for national and international publications on all forms of electric power generation, utility regulation, business models...

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  • Mar 11, 2021
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Appalachian Power is asking Virginia State Corporation Commission (SCC) for permission to recover electric transmission infrastructure improvement costs.

In its filing, Appalachian Power asked to increase the authorized Transmission Rate Adjustment Clause (T-RAC) from $225.1 million to $337.7 million, a $112.6 million increase. The T-RAC recovers costs for transmission services, fees and new construction. Appalachian is investing in transmission infrastructure to improve grid reliability and accommodate the anticipated growth of renewable generation.

If approved by the Commission, the change would increase the monthly bill for a residential customer using 1,000 kilowatt-hours by $11.52, or roughly 11%, effective in July.

Rate adjustment clauses (RACs) allow Appalachian to adjust parts of the bill periodically for specific costs not included in base rates. The utility's filing was made to cover an increase in Network Integration Transmission Service (NITS) Charges administered by PJM, and an expected decline in revenues in the company’s base rate charges. 

Appalachian Power has 1 million customers in Virginia, West Virginia and Tennessee, and is part of American Electric Power.

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