Appalachian Power proposes reduced rate increase following federal tax reform
Appalachian Power recently proposed millions in cost-cutting measures across its services to the Public Service Commission of West Virginia, as a result of $235 million gained through the recent federal tax reform.
In their proposal, Appalachian Power called for returning $30 million to customers over the next three years, in the form of credit on bills. If the Commission approves, they would also use tax reform funds to eliminate $131 million in fuel cost increases and vegetation management. This could be coupled with $51 million to offset 2019’s fuel costs and shield customers from a hefty fuel increase, along with $18 million to reduce the company’s requested rate base increase.
“We’re working with the parties involved to help keep customer rates as stable as possible over the long term and minimize rate increases,” Chris Beam, Appalachian Power president and COO, said. “This proposal will benefit our customers. It reduces the effect of rate increases and smooths out rates for customers.”
Beyond rate cuts and cost management, the company also intends to set aside $1 million for economic development grants throughout 2018 and 2019. Appalachian Power, which has customers in Virginia, West Virginia and Tennessee, released the proposal with Wheeling Power.
