- Special Sections
- Public Notices
Appalachian Power Company is seeking a rate increase in connection with two requests to make improvements to transmission lines and infrastructure.
One of the requests could mean a monthly increase of about $4 for an average residential customer’s bill, beginning in May.
The other proposal would allow the power company to make improvements to 36 miles of transmission line between its Cloverdale substation in Botetourt County and a point in Rockbridge County where it connects with a line owned by Dominion Virginia Power.
APCo says the project is needed to ensure adequate and reliable electric service by addressing North American Electric Reliability Corporation reliability criteria violations projected for 2014.
The NERC oversees all of the interconnected power systems of the contiguous United States, Canada and a portion of Baja California in Mexico.
The $36 million APCo project will also relieve market congestion on the transmission connection between Appalachian and Dominion.
Additional information about the project, including maps, photos, fact sheets and the company’s rate request filing with the State Corporation Commission, is available at www.appalachianpower.com/cloverdalelexington/.
APCo also filed a request with the SCC to seek recovery of electric transmission costs. The rate change is the first sought by the company since 2009 for transmission infrastructure improvements.
Appalachian is asking for an annual increase of $49.9 million. If approved by the SCC, the change would increase the monthly bill for a residential customer using 1,000 kilowatt-hours by $3.98, or 3.6 percent. It would become effective in May 2014.
Costs will be reflected on customer bills by updating the transmission rate adjustment clause allowed by the SCC to recover specific costs not included in the company’s approved base rates and to allow targeted rate changes that can help smooth out bill increases, the company said.
The filing spreads “under-recovered” amounts across 19 months rather than 12 months, dropping the increase from 5 percent to 3.6 percent, APCo said.