Electricity costs more than it used to, and you deserve to know why.
The cost of coal and environmental controls are the two biggest drivers of your electric bill:
About 70 percent of the electricity we generate at Appalachian Power is fueled by coal. However, we make no profit on fuel costs. Instead, the actual cost we pay, subject to review by state regulators, is passed through to our customers.
Updating our generating plants with emission controls to meet federal environmental regulations greatly increased our costs over the last decade. Since 2005, we have spent more than $2 billion to install scrubbers and other emission control equipment at our plants. It is likely there will be other requirements going forward.
Customers' growing demands for electricity also have required Appalachian Power to purchase even more power to supplement its generation fleet.
Increased Cost Of Purchased Power
Appalachian Power does not have enough of its own generation to serve its customers’ peak demand and has for years purchased power from other utilities to supply the deficiency. During the polar vortex of 2014, energy prices increased from an average of $39 per megawatt hour to $127 per megawatt hour. Real time prices were as high as $1,800 per megawatt hour.
The national average residential price for electricity is 11.98 cents per kilowatt-hour. Appalachian Power rates are competitive with other regional utilities.
We know higher rates are a burden, and that’s why at Appalachian Power we’re making every effort to hold down our costs by:
- Reducing our operating budget
- Implementing lean efficiency measures
Rates for Appalachian Power are designed to balance safety, reliability, price and earnings, and are established to allow the company to provide safe, clean, reliable electric service while keeping prices as affordable as possible and to earn a fair return on investment.
Appalachian Power is working hard to keep costs down. And by working together, we can lessen the burden of rising electricity costs.
Learn more about Appalachian Power's current rate requests.