AEP Appalachian Power submits rate to Tennessee PUC
AEP Appalachian Power filed an application with the Tennessee Public Utility Commission (TPUC) to raise residential customer rates and provide customers with new options and benefits.
The proposed rate increase would raise the average monthly bill for a typical residential customer using 1,000 kilowatt-hours of electricity by $7, or roughly 6.8 percent, effective July 2022. Even with the proposed increase, the company’s rates remain among the lowest in the United States.
The proposal also includes three optional programs for residential customers to help them save money. One of the options will allow customers to save money by shifting their electric usage away from the peak time for winter heating and summer cooling. A second option would save money for customers who charge their electric vehicles during off-peak times. The third option would allow residential customers to support renewable energy by subscribing to certificates that show renewable energy was generated and delivered to the grid on their behalf.
The proposal also includes an economic development incentive for commercial and industrial customers. Specifically, those that establish or substantially expand their operations would receive a 40 percent reduction on the additional electric load generated by the expansion for five years.
“Our filing represents a cost-effective approach that addresses the needs of our customers and supports local economic development efforts,” Chris Beam, Appalachian Power president and chief operating officer, said. “We are a partner with our communities, and our economic development program is another tool to support ongoing efforts to create new jobs and tax revenue that help our areas thrive.”
AEP Appalachian Power serves approximately 50,000 customers in eastern Tennessee.
