Appalachian Power (AEP) has submitted a request to the State Corporation Commision (SCC) to increase customer rates to defray the cost of renewable energy projects and to keep their current coal and natural gas plants compliant with environmental regulations.
Energy bills would go up an average of $6.36 per month, a 3.6% increase. Energy bills from AEP have increased by about $50 since July of 2022. AEP spokesperson George Porter defended the increases.
“We’re not immune to the everything that’s happening in the country and the world as far as inflation and rising interest rates. The cost of delivering power and delivering electric has gone up.” Porter said.
This comes amid a push by AEP to have a carbon free portfolio by 2050, as part of the Virginia Clean Economy Act passed back in 2020. The company is hoping to recover almost $69 million in costs associated with these projects, which are either currently producing electricity or will be within the next two years.
In a second request, AEP is trying to recover an additional $60.6 million spent on ensuring coal and natural gas plants meet Virginia and federal environmental regulations.
“We’re expanding our generation portfolio looking for renewables. Costs are happening as we bring on these new projects for that, so these costs are being passed over to consumers.” Porter said.
The utility is also working to get approval to continue evaluating a site in Campbell County for a small modular nuclear reactor (SMR). It would be the first of its kind as there are currently no commercial SMRs used in the U.S.
The SCC must approve these rate increases next. They can approve, deny or even lower the increase with their ruling. AEP said in a statement that these proposed costs wouldn’t take effect before March 1st, 2026, and they intend to pursue future action to mitigate rate impacts on customers.
