ROANOKE, Va., Dec.10, 2008 – Appalachian Power today implemented new base rates for its Virginia retail customers as approved by the Virginia State Corporation Commission (SCC).  The revised rates are to be applied to customer bills beginning with those dated today.

The new rates are lower than interim rates the company used for billing between Oct. 28 and Dec. 9.

On Nov. 17 the SCC issued an order (in its case no. PUE-2008-00046) allowing the company to increase base rates approximately $168 million.
Appalachian had originally sought an increase of almost $208 million and implemented those rates on an interim basis Oct. 28 as provided under state law.

The SCC directed Appalachian to implement the new rates within 30 days of its order and to refund to customers the collected difference between interim and approved rates, including interest, before mid-February 2009.

Appalachian estimates the rate change will reduce a monthly bill paid by a residential customer for 1,000 kilowatt-hours of electricity from about $93.95 using the interim rates to approximately $90.53 under the approved rates.

Bill Bosta, Appalachian’s director of regulatory services in Richmond, said refunds will be credited to customer bills by February.   However, customers should not expect to be credited the sizeable refunds received as a result of the commission’s order in the last base rate case filed in 2006.

“The interim rates in this case were in effect for a much shorter period than during the previous case and there is a much smaller difference between the interim and approved rates this year,” Bosta said.

“Additionally, we expect the interest rate applied to these refunds will be lower than the 8.25 percent added last year,” he noted.

The company filed its rate increase request in May 2008 to reflect the large expenditures it is making at its generating plants pursuant to environmental regulations and to recover rising operating costs.

Customers are urged to manage their energy use wisely and to visit the company’s Internet site ( www.WattWhyAndHow.com) for energy-saving tips and a free home energy calculator that can help explain how to conserve electricity. The site also provides information on payment options available to customers.

Customers who recognize that they may have bill problems or may be unable to pay a full amount should contact the company on-line at www.appalachianpower.comor by phone at 1-800-956-4237 as soon as possible in order to work out payment arrangements.

Appalachian Power provides electricity to 1 million customers in Virginia, West Virginia and Tennessee (as AEP Appalachian Power). It is a unit of American Electric Power (NYSE: AEP), one of the largest electric utilities in the United States, with more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined.
 
 
Estimated Virginiaresidential customer base rate bill impact