State Commission Rejects Appalachian Power’s Proposed Rate Increase

Richmond, VA --  Last week, the Virginia State Corporation Commission (SCC) rejected Appalachian Power’s proposal to increase the basic service charge and pre-charge then stockpile consumers money to subsidize the retirement of its uneconomic coal plant’s even though Appalachian Power has not locked in retirement dates. The Sierra Club actively fought against the proposed coal amortization rider, providing key witnesses arguing that the increase would result in consumers pre-paying for undetermined early coal retirements. Appalachian Power filed an appeal of the SCC ruling the day after the decision was made. 

Prior to the hearing, the Sierra Club and Appalachian Power entered into a settlement agreement that ensures the utility will conduct a robust economic retirement analysis of its Amos and Mountaineer coal plants as part of its next Integrated Resource Plan (IRP)  in 2022. The analysis must occur in 2021 or 2022 to reflect the most up-to-date information and will inform the Commission, the ratepayers, and the public of the coal plants economic state to ensure that no additional money will be sunk into uneconomic coal plants.

Mary-Stuart Torbeck, Sierra Club’s Beyond Coal Campaign Campaign Representative, released the following statement:

“We applaud the SCC for living up to Virginia’s rate-making principles and rejecting Appalachian Power’s frivolous rate hike that would have almost doubled the basic service charge and forced consumers to foot the bill for uneconomic coal plants in the middle of a historic economic crisis and global pandemic.”