The average monthly bills of Appalachian Power Co. residential customers will rise 7.2 percent because of a fuel rate increase approved Thursday by the State Corporation Commission (SCC).
The new fuel rate of 2.953 cents per kilowatt-hour (¢/kWh) takes effect Friday. The new rate represents an increase of 0.756 ¢/kWh from the fuel factor of 2.197¢/kWh established by the SCC in 2010.
For the average residential customer, the fuel rate increase means the monthly bill for 1,000 kilowatt-hours of electricity will increase $7.56, or approximately 7.2 percent.
The fuel rate is the portion of the electric bill that pays for the cost of fuel used to generate electricity.
The SCC found that “… given the significant rate impact of the level of projected fuel expenses in the proceeding, the company’s proposed mitigation measure to recover its deferred fuel balance over a twenty-four month period is reasonable.”
The fuel rate is reviewed annually by the SCC. If necessary, the rate is reset to reflect fuel expenses for the previous year and projected fuel expenses for the coming year.
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