Roanoke, VA - Appalachian Power officials say the company is requesting the Virginia State Corporation Commission (SCC) to increase rates to reflect higher fuel costs.
Appalachian's proposal would increase overall rates about 9%. Residential rates would increase about 7% from 10.5 cents per kWh to 11.26 cents per kWh. Officials say they don't expect to further increase rates in 2012.
Officials with Appalachian Power say the request addresses a growing imbalance between what the company pays for fuel and what it's collecting from customers.
Company officials plan to collect a portion of the increase over an extended period to help reduce the impact on rates. The new factor is proposed to take effect in early June, subject to the review and approval of the SCC.
Appalachian Power has about 1 million customers in Virginia, West Virginia and Tennessee (as AEP Appalachian Power.) It's a unit of American Electric Power, one of the largest electric utilities in the United States that delivers electricity to more than 5 million customers in 11 states.