9/29/2006
APPALACHIAN POWER TO IMPLEMENT NEW INTERIM RATES;
SEEKS FIRST BASE RATE INCREASE IN MORE THAN A DOZEN YEARS

ROANOKE, Va., Sept. 29, 2006 – Appalachian Power will implement an interim increase in Virginia retail customer base rates beginning October 2.  

Appalachian filed a request May 4 with the Virginia State Corporation Commission (SCC) seeking approval of a $198.5 million increase in customer rates. On May 30, the SCC established a schedule for the case and ordered that rates could be implemented on an interim basis beginning October 2.

The interim rates, which will increase the company’s Virginia revenues approximately 25 percent, will be collected subject to refund based on the final decision of the SCC following public witness testimony November 7 and hearings scheduled to begin December 6 in Richmond.

Appalachian estimates implementation of the new rates will increase the monthly bill paid by a residential customer for 1,000 kilowatt-hours of electricity from the current amount of $61.57 to $75.23, excluding taxes—an increase of $13.66.

The last time the company was granted a general base rate increase by the Commission was in 1993.   Its last base rate change was a decrease in 1999.

The company has implemented numerous technological advances and management programs to improve efficiency and reduce costs but, in recent years, the measures have not kept pace with increased operating costs.

Appalachian’s retail base rate request seeks recovery of these significant new costs, such as compliance with environmental requirements and rising costs for facilities related to system growth and reliability. It is investing more than $1.4 billion to comply with mandated clean air laws at several power plants resulting in cleaner air at the lowest possible cost.
 
Electric utility base rates have been capped in Virginia since 2000 but may be revised on a limited basis based on approval of the SCC. For example, the existing fuel factor component of customer bills allows the company to recover and “true-up” fluctuating fuel costs used for power generation on an annual basis.

Appalachian’s rate filing (known as SCC PUE-2006-00065) is the first under a Virginia statute that delays implementation of market pricing for electricity until 2011 under the state’s Electric Utility Restructuring Act. It allows the company to request a change in its base rates prior to June 30, 2007 and one additional change between July 1, 2007 and the end of 2010.  

Such periodic adjustments to electric utility rates are critical to maintaining the financial health and power-delivery capabilities of companies serving customers in the Commonwealth.

Appalachian has an additional $21 million environmental and reliability cost-recovery case pending before the SCC. Allowed by statute, it was filed in July 2005 seeking timely recovery of actual expenses related to those issues incurred during the period from July 1 2004 through September 30, 2005. Environmental and reliability costs addressed in the newest filing are separate and not duplicative.

Customers are urged to manage their energy use wisely and to go to the company’s Internet site ( www.AppalachianPower.com) for energy-saving tips and a free home energy calculator that helps customers better understand how they use power. The site also provides information on payment options available to customers.

Appalachian Power ranks among the lowest-cost providers of electricity in Virginia and in U.S. comparisons. The most recent national survey of electric rates by the Jacksonville (Fla.) Electric Authority placed the company as third lowest of the 56 utilities surveyed. An Edison Electric Institute 2005 report issued in January listed Appalachian prices in Virginia as seventh lowest among 178 suppliers nationwide.

Appalachian Power provides electricity to 1 million customers in Virginia, West Virginia and Tennessee.  It serves more than 500,000 customers in southwestern Virginia.  It is a unit of American Electric Power (NYSE:AEP), one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states.  AEP ranks among the nation’s largest generators of electricity, owning nearly 36,000 megawatts of generating capacity in the U.S. 


John Shepelwich
Corporate Communications Manager
(540) 985-2968
jeshepelwich@AEP.com

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Privacy Policy

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

Scope

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

  1. Passively collected information

    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.

Use and disclosure of information

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.

Security

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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