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Appalachian Power customers could see an increase in their power bill after the company filed a request with the Virginia State Corporation Commission seeking recovery of electric transmission costs, the company said in a press release.
If approved by the commission, the increase would be $3.98 or 3.6 percent for a customer using 1,000 kilowatt-hours. The increase would take place in May of 2014.
This is the first rate increase Appalachian Power has asked for in four years. They are seeking an annual increase of $49.9 million. The costs would be recovered on customer bills by updating the Transmission Rate Adjustment clause. Rate Adjustment Clauses were established for recovery of specific costs that are not captured in the company's approved base rates and to allow targeted rate changes that can help smooth out bill increases, the press release stated.
The filing would spread the costs across 19 months rather than 12 months. Spreading out the increase dropped the rate from five percent to 3.6 percent.
Appalachian Power has 1 million customers in Virginia, West Virginia and Tennessee. It is a unit of American Electric Power.