Loading...

Processing your request

Thank you for your patience.

Working to Minimize Electric Bill Increases through Securitization

In a positive move for our Mountain State customers, the PSC of West Virginia has allowed APCo to recover approximately $2.4 billion in investments and expenses through consumer rate relief bonds. This method will ultimately save our customers money compared to traditional recovery methods. The order also includes provisions for consolidating under-recovered balances from various cases, including expanded net energy costs, deferred storm costs from significant events like Hurricane Helene, the company's share of undepreciated plant balances from the Amos, Mountaineer and Mitchell power plants and costs associated with compliance with U.S. Environmental Protection Agency regulations.

How Securitization Helps Manage Energy Costs

Securitization is a financing tool that enables us to recover certain costs through lower-interest bonds rather than traditional recovery methods. Energy costs can change quickly, but your electric bill doesn't jump up and down with every shift in the market. That's because we can't immediately change customer rates when our cost to provide service rises. Instead, we carefully track these costs over time.

Securitization is a tool that allows us to manage these unrecovered costs in a way that protects you from a significant bill increase at once. It provides a less expensive way to improve our service.

What is Securitization?

  • Securitization is a financial tool that groups unrecovered costs - such as major storms, coal and natural gas expenses and power plant investments - and spreads them out over an extended period.
  • It's like refinancing a home to make the payments more manageable and smaller.
  • This tool helps prevent sudden, sharp increases in electric bills and supports long-term price stability.

Why Securitization Matters to You

  • It will lower the impact on your monthly bills compared to traditional cost recovery mechanisms.
  • It will allow us to make substantial investments in maintaining a reliable electric system without overwhelming our customers.

Contact the Virginia State Corporation Commission to let them know you support securitization.

Welcome back!

Please login to manage your account.