CHARLESTON, W.Va., March 30, 2012 – Appalachian Power, along with Wheeling Power, today submitted its annual filing to the Public Service Commission of West Virginia (PSC) reporting fuel costs. Both companies are subsidiaries of American Electric Power (AEP). The Expanded Net Energy Cost (ENEC) is designed to reimburse the company for past and ongoing costs of fuel (primarily coal) and purchased power.

The company requested no ENEC rate change this year. In its filing, Appalachian asked the PSC to authorize the issuance of Consumer Rate Relief Bonds as allowed by legislation passed this year. The bonds will be used to pay for the unrecovered balance of past fuel costs, as well as this year’s anticipated costs. Current ENEC rates are expected to cover the cost of repaying the bonds as well as recover ongoing ENEC costs.

Coal and purchased power costs have escalated for Appalachian Power’s customers in the last several years. In 2009, the PSC issued an order to spread out the costs of coal purchased in 2008 and 2009, when coal prices spiked to record highs, over a four-year period. However, electricity sales continue to be depressed and coal prices have been higher than forecasted, so Appalachian still faces an under-recovery of $356 million in ENEC costs. Without the Consumer Rate Relief Bonds, customers would have faced a 30 percent increase this year to allow recovery of these past costs.

“We’re aware that an increase in utility bills is difficult for our customers, and we’re grateful that the W.Va. Legislature and the Governor saw fit to support this option,” said Appalachian Power President and COO Charles Patton. “We also appreciate the support of the PSC Staff, Consumer Advocate Division, AARP and large industrial users for this legislation. All customers benefit from this innovative solution.”

Today’s filing also includes costs for two other projects, neither of which cause an increase in rates. First, the company requested an additional $2.3 million in cost recovery for the installation and operation of federally-mandated environmental control equipment at its John Amos plant. It also requested recovery for $32.1 million in costs associated with the construction and operation of the new combined cycle natural gas Dresden Plant, which began commercial operation early this year.

Rates for Appalachian’s customers are almost 20 percent below the national average. The national average residential price for electricity is 11.4 cents per kilowatt-hour, compared to Appalachian’s 9.7 cents. Appalachian offers several ways for customers to manage their energy usage:

  • The best way to avoid the spikes caused by winter heating and summer cooling is to sign up for the Average Monthly Payment Plan, which evens out monthly bills.
  • Appalachian Power launched several new energy efficiency programs last year for residential customers:
    • Home Energy Assessment – A professionally trained energy technician will come to a home and help assess how much energy the home uses and evaluate what measures would help improve efficiency. Rebates are also available. For more information and to schedule an appointment, call 1-888-446-7719.
    • Online Energy Checkup – Go to AppalachianPower.com to complete a home energy assessment and learn more about a home’s energy use. It takes less than 10 minutes to complete.
    • SMART Lighting Program – Customers can receive instant rebates on ENERGY STAR® CFL lighting at select retail stores. A list of participating stores is available at AppalachianPower.com.
    • Low Income Weatherization Program – This program provides weatherization products and services to residential customers in need of help reducing their energy bills. Local Community Action Agencies can be found at www.communityactionpartnership.org or by calling 1-304-347-2277.
  • Programs are available for commercial and industrial customers too. For more information, visit AppalachianPower.com.
  • Appalachian Power’s website (AppalachianPower.com) has a section dedicated to simple energy efficiency tips.


This report made by American Electric Power and its Registrant Subsidiaries contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: electric load and customer growth; weather conditions, including storms; available sources and costs of, and transportation for, fuels and the creditworthiness and performance of fuel suppliers and transporters; availability of generating capacity and the performance of AEP’s generating plants; AEP’s ability to recover regulatory assets and stranded costs in connection with deregulation; AEP’s ability to recover increases in fuel and other energy costs through regulated or competitive electric rates; AEP’s ability to build or acquire generating capacity (including the ability to obtain any necessary regulatory approvals and permits) when needed at acceptable prices and terms and to recover those costs (including the costs of projects that are canceled) through applicable rate cases or competitive rates; new legislation, litigation and government regulation, including requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances; timing and resolution of pending and future rate cases, negotiations and other regulatory decisions (including rate or other recovery of new investments in generation, distribution and transmission service and environmental compliance); resolution of litigation (including disputes arising from the bankruptcy of Enron Corp. and related matters); AEP’s ability to constrain operation and maintenance costs; the economic climate and growth or contraction in AEP’s service territory and changes in market demand and demographic patterns; inflationary and interest rate trends; volatility in the financial markets, particularly developments affecting the availability of capital on reasonable terms and developments impacting AEP’s ability to refinance existing debt at attractive rates; AEP’s ability to develop and execute a strategy based on a view regarding prices of electricity, natural gas and other energy-related commodities; changes in the creditworthiness of the counterparties with whom AEP has contractual arrangements, including participants in the energy trading markets; actions of rating agencies, including changes in the ratings of debt; volatility and changes in markets for electricity, natural gas, coal, nuclear fuel and other energy-related commodities; changes in utility regulation, including the implementation of the recently passed utility law in Ohio and the allocation of costs within regional transmission organizations; accounting pronouncements periodically issued by accounting standard-setting bodies; the impact of volatility in the capital markets on the value of the investments held by AEP’s pension, other postretirement benefit plans and nuclear decommissioning trust and the impact on future funding requirements; prices for power that AEP generates and sells at wholesale; changes in technology, particularly with respect to new, developing or alternative sources of generation; and other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes and other catastrophic events. 

Jeri Matheney
Corporate Communications
(304) 348-4130

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Privacy Policy

Privacy Policy for Appalachian Power, a unit of American Electric Power (AEP)


This Privacy Policy applies only to AppalachianPower.com and the Appalachian Power customer mobile app (com.aep.customerapp.apco). Other AEP websites and apps may be governed by their own privacy policies, appropriate to the uses and needs of each. Throughout the site or app, we may provide links to resources and sites that are not part of AppalachianPower.com or the Appalachian Power customer mobile app. This Privacy Policy does not apply to those resources and sites.


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Information Collected

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    During your use of this site or app, we may collect anonymous information about your visit here through the use of server logs, cookies, scripts, tracking pixels and other Web traffic tracking systems. This information is aggregated and used to improve user experience through analysis of user activities. This information is never combined with any of the personally identifiable information you may provide in your use of the features of this site or app.
  2. Personally identifiable information

    On certain forms of this site or app, you may be asked to provide information about yourself or your account with us, either to identify yourself to us or to request a service from us. In each case, we will inform you what information is provided at your option and what information is required to complete the transaction or activity you are engaged in. If you are unwilling to provide this required information, you will be unable to complete the requested transaction.

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The information you provide to us will be used to respond to requests you may make for services. Some or all of this information may be added to your permanent account record and may be used for research purposes.

In addition, we may use elements of this information in the following situations:

  1. We may transfer the information to Appalachian Power’s affiliates and subsidiaries, unless such transfer is prohibited by law;
  2. We may transfer the information as part of a merger, consolidation, acquisition, divestiture or other corporate restructuring (including bankruptcy);
  3. We may make the information available to third parties who are providing the product, service or information that you have requested (but not your password);
  4. We may make such information available to third parties who are providing services to Appalachian Power (for example, providing the information to third parties performing computer-related services for Appalachian Power);
  5. We may use the information to communicate with you about products and services that may be of interest to you.
  6. We may disclose the information if we form a good-faith belief that disclosure of such information is necessary to investigate, prevent, or take action regarding any illegal activities or regarding interference with the operation of our site or violation of its terms of use; or
  7. We may disclose the information if we believe that disclosure is required by law or regulation or in response to a subpoena or other order of a court or other governmental agency.

Appalachian Power uses Flurry Analytics Service (provided by Yahoo) in order to improve its mobile apps. Flurry’s privacy policy governs the use of this information.

Also, Appalachian Power reserves the right to share any aggregated information (i.e., non-personally identifiable information) with any third parties for any reason, unless prohibited by law.

We will not sell, rent or otherwise disclose the information we gather about you or your account to any third party, except as outlined in this Privacy Policy.


Appalachian Power takes reasonable steps to protect your personally identifiable information as it is transferred to us, through the use of Web technologies such as the Secure Sockets Layer and others. However, no Internet transmission of information is ever completely secure or error-free. In particular, e-mail sent to or from Appalachian Power may not be secure.

How to Reach Us

If you would like to update your personally identifiable information or if you have questions about this privacy policy, please contact us.

Changes to This Policy

Appalachian Power reserves the right to change this Privacy Policy at any time. If this Privacy Policy changes, the revised policy will be posted to this site. Please review this Privacy Policy before you provide any personally identifiable information through this site. Use of our web site after the posting of a revised privacy policy constitutes your consent to the revised policy.

This policy was last revised on December 13, 2017.

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