RICHMOND, Va., October 29, 2004 – Appalachian Power, a unit of American Electric Power (AEP), today filed a request with the Virginia State Corporation Commission (SCC) to increase the fuel factor component of its customers’ bills.
           The company is seeking to raise its fuel factor from the current level of 1.300 cents per kilowatt hour (KWH) to 1.420 cents per KWH. The proposal will result in an increase in the company’s annual Virginia revenues of approximately $18.6 million, or 2.8%. The increase reflects a continuing rise in the projected costs of electric generating fuel—particularly coal—during 2005.  
            The company’s base rates have been capped since 1999 by the Electric Utility Restructuring Act, but the fuel factor component of bills may be adjusted allowing Appalachian Power to recover fluctuating fuel costs associated with the generation of electricity. Pending approval by the SCC, the company proposes the increase to take effect January 1, 2005.
             If the adjustment is approved as requested, an AEP residential customer who uses 1,000 KWH in a billing month will see an increase of 2.1% or $1.20 on that monthly bill.
The company’s fuel factor was increased slightly in 2003 and was adjusted downward later that year to where it stands now—its lowest level in 25 years.
            Appalachian Power provides electricity to 1 million customers in Virginia, West Virginia and Tennessee.  It is a unit of American Electric Power, the nation’s largest electricity generator.  AEP owns more than 36,000 megawatts of generating capacity and is one of the nation’s largest electric utilities, with more than 5 million customers in 11 states.