Sierra Club Urges State Commission to Stop APCO from Increasing Consumer’s Rates by $65 Million & Needlessly Subsidizing Dirty Coal

Richmond, VA -- Today, in hearings before the State Corporation Committee (SCC), 

the Sierra Club testified against Appalachian Power’s attempt to almost double the basic service charge and force consumers to needlessly subsidize continued operations for archaic coal plants. The proposed increase includes a ‘coal amortization rider’ which would make consumers needlessly stockpile their money for the company in order to further reliance on fossil fuels. 

The rate increase proposal failed to include an economic or retirement analysis for the Amos and Mountaineer coal units. Thus, the company was providing no justification for asking consumers to pay for expenditures associated with continued coal plant operation. However, the Sierra Club entered into a settlement with Appalachian Power which ensures the utility conducts a robust retirement analysis for each coal unit that includes analysis of clean energy alternatives. The settlement was proposed to the commission pending their final approval. 

Mary-Stuart Torbeck, the Senior Organizer for Sierra Club Virginia Chapter, released the following statement:

“At a time of economic uncertainty, Appalachian Power’s unnecessary rate hike would dramatically increase already burdensome electricity bills. This rate increase would result in, further overburdening consumers,  prolonging Virginia’s dependence on climate-warming fossil fuels, encourage wasteful electricity use, and furthering intergenerational inequalities. The SCC must reject this frivolous rate increase which is blatantly out of step with the state’s rate-making principles.”