Old Dominion Power requests rate review
Old Dominion Power (ODP), the name under which Kentucky Utilities operates in Virginia, recently requested approval from the Virginia State Corporation Commission for a cost-based rate increase of $12.7 million to continue investments in its energy infrastructure.
Residential electric customers who use 1,285 kilowatt-hours per month would see an increase of $28.93 per month.
“Customers are most interested in our keeping the lights on and bills reasonable, so we must strike a solid balance of investments and prudent costs,” Paul W. Thompson, chairman, CEO and president of ODP, said. “We carefully evaluate each project to ensure we are providing the best value for safe, reliable service.”
The company noted that it has invested or will invest approximately $1.4 billion in capital from July 1, 2018, through Sept. 30, 2020, into its electric system in Kentucky and Virginia. Improvements include equipment that detects outages, stronger poles and wires and efforts to meet environmental regulations. ODP noted that it had seen interruptions in electric service decline by 28 percent in the last 10 years.
ODP also highlighted investments in power plant projects, including new cooling towers being built at Ghent Generating Station, a replacement gas line being installed for the combustion turbines at E.W. Brown Generating Station and ongoing inspections and maintenance.
ODP proposed offering an Economic Development and Green Tariff.
“Green tariffs are used to attract new businesses and jobs,” Thompson said. “Companies such as Apple, Google, Amazon Web Services, Walmart, and Target are all examples of companies that have taken advantage of green tariffs. We understand the need for economic growth in the region and are trying, by offering options to help companies meet their sustainability goals, to encourage new business to expand or locate to the region.”
If approved, the new rates would go into effect in April 2020.
