BY CRAIG DAVISON
Media General News Service
The State Corporation Commission approved Tuesday a rate hike for Appalachian Power Company to take effect March 1.
The rate hike will pay costs associated with Appalachian's acquisition and operation of the Dresden Generating Plant in Ohio.
The rate hike is expected to generate more than $26 million per year.
However, December's decision regarding base rate cuts will reduce Appalachian's revenue by about $27.5 million per year, said Todd Burns, spokesman for the company.
For a customer using 1,000 kilowatt hours of electricity, the rate hike will cost them $2.08 more per month.
The company filed four rate change plans with the commission in March, Burns said. This was the final change the commission approved.
Burns said overall, the four changes will result in about a 10 percent increase. He said it's similar to 2010 pricing.
The first changes take place at the end of January with the final change beginning March 1. Burns said it allows customers to get through January paying the lower rates.
"The good news for our customers is that the rates will continue to be down through the end of January," he said.
Someone using 1,000 kilowatt hours of energy would currently pay $94 per month, Burns said. When all the new rates are in place, the price would increase to $104, he said.
Burns said the company does not generate the energy required to meet all the demands of its customers. The new plant near Dresden, Ohio, which is slated to open at the end of February, will decrease the amount of power it must buy from other utilities.
The Dresden plant is a 580 megawatt natural gas-fired power plant.
"We have a lot of coal-fired power plants, so this is a welcome addition to add some additional diversity to our generating mix," he said.
Davison is a staff writer for The News & Advance.
Email
Facebook
Google
Twitter
Favorites
More
Advertisement