RICHMOND, Va., July 1, 2005 – Appalachian Power made a filing today with the Virginia State Corporation Commission seeking approval for the recovery of $62.1 million in new environmental and reliability costs.

The company requested that an Environmental and Reliability (E&R) cost recovery factor be applied to electric service bills on an interim basis beginning August 1. If approved, it will be applied as a 9.18 percent surcharge to customer bills.

Appalachian estimates implementation of the E&R factor will result in an increase on a 1,000 kilowatt-hour monthly residential bill from the current amount of $57.87 to $63.18. The estimate does not include taxes.

The filing is the first under a new Virginia statute that extended capped rates and the implementation of market pricing until 2011 under the Electric Utility Restructuring Act. It also specifically provided for the recovery of incremental costs of complying with governmental environmental requirements and the incremental costs of transmission and distribution system reliability. The statute became effective July 1, 2004.

The company’s base rates in Virginia have been capped by the Act since 1999 but have been subject to change on a limited basis. For example, the existing fuel factor component of customer bills allows the company to recover and “true-up” fluctuating fuel costs for power generation.  In a similar manner, the company’s proposal in this request will allow annual adjustments for environmental and reliability costs in Virginia.

Appalachian requested in the filing that this first E&R factor go into effect Aug. 1, 2005 because the company has incurred substantial incremental costs since the July 1, 2004 effective date of the statute. The company says in its application that costs already incurred and those that continue to be incurred are to be recovered in a timely manner. The company encouraged the Commission to place the E&R factor into effect for collection while the SCC reviews the entire application. Dollars collected during that period could be subject to refund based on outcome of the SCC final order.

American Electric Power, parent company of Appalachian Power, will invest approximately $3.7 billion through 2010 to install additional environmental controls on its efficient coal-fired generation fleet. The new construction and retrofitting will meet the first phase of the Clean Air Interstate Rule and the Mercury Rule finalized earlier this year by the U.S. Environmental Protection Agency.

Most of the $62.1 million request filed today consists of Appalachian’s Virginia share of those environmental compliance costs: $38.7 million, or 62 percent of the total. The application also includes cost recovery for work on the new Wyoming-Jacksons Ferry 765 KV transmission line and other incremental transmission and distribution system reliability work.

Appalachian Power continues to rank among the lowest-cost providers of electricity in Virginia and in U.S. comparisons. Appalachian Power customers in Virginia, using 1,000 kilowatt-hours of electricity in a month, pay less today than in January 1985.

Appalachian Power provides electricity to 1 million customers in Virginia, West Virginia and Tennessee.  It serves almost 500,000 customers in southwestern Virginia.  It is a unit of American Electric Power (NYSE:AEP), the nation’s largest electricity generator.  AEP owns more than 36,000 megawatts of generating capacity and is one of the nation’s largest electric utilities, with more than 5 million customers in 11 states.

John Shepelwich
Corporate Communications Manager
(540) 985-2968

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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.


By using this site or app, you consent to the terms of this Privacy Policy. Whenever you submit information via this site or app, you agree to the collection, use, and disclosure of that information in accordance with this Privacy Policy.

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.


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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