Beginning January 1, Appalachian Power customers in Virginia will see a drop in electric rates for the second time in six months. Here is a press release from Appalachian Power:
Appalachian Power customers in Virginia will experience another drop in their electric rates starting Jan. 1 when a temporary surcharge expires. This time rates will drop about 7 percent or $90 million annually. It is the second rate decrease in six months for Appalachian. In August, the company implemented a $40 million rate reduction.
For a residential customer using about 1,000 kilowatt-hours a month, the rate will drop from $103.48 to $96.21. Both rates include sales and consumption taxes.
This decrease is due to the expiration of a $90 million annual Environmental and Reliability rider. Following public hearings and approval by the Virginia State Corporation Commission, the company began collecting the rider in 2005 to recover environmental and reliability expenses not included in the company’s base rates. The most recent rider was designed to recover approximately $90 million of predominantly environmental expenses that the company incurred in 2008.
“We’re fortunate to pass along this additional reduction to customers at a time when many people use more electricity to heat their homes,” said Charles Patton, Appalachian Power president and COO.
Although Appalachian’s rate is decreasing, customers can still have a higher than normal electric bill, especially those customers who heat with electricity. When outdoor temperatures are low, electric heating equipment must work harder to keep living spaces warm. Appalachian Power encourages all customers to learn more about using energy wisely. Useful energy tips and energy calculators are available at the company’s website AppalachianPower.com.
Customers can also level out spikes in their electric bill by switching to the company’s Average Monthly Payment Plan. Sign up for the program on-line or contact the company at 1-800-956-4237.