Appalachian Power explains possible rate increase - WSLS 10 NBC in Roanoke/Lynchburg Va

Appalachian Power explains possible rate increase

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Appalachian Power customers, get ready for a possible increase on your power bills.

The company is asking the Virginia State Corporation Commission (SCC) for a $49.9 million increase for money it says it's lost over the past four years.

WSLS wanted to know what the costs would cover. John Shepelwich, a spokesperson for APCo says the cost of producing power has gone up for the company.

"These are those costs that we cannot control as a company that may be mandated costs or that are uncontrolled in a sense in that they can fluctuate such as fuel costs or environmental costs. The transmission rack is the same way."

Shepelwich says past infrastructure improvement costs have also added to the bill.

The proposed increase is meant to recoup money lost in the past, not the future.

The $49.9 million increase means customers who use 1,000 kilowatt hours a month will see an increase of $3.98, or a 3.6% increase.

Shepelwich says the company is working to keep those fees low for customers by stretching out the process.

"We've mitigated the cost as best as we can and stretched it out over a 19 month collection period rather than 12 months."

The rate increase wouldn't be seen by customers until May 2014. The SCC is expected to make a decision on the increase between March and April of 2014.

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