Appalachian Power supports reduction in rate increase
- October 30, 2008
Appalachian Power, which provides much of Southwest Virginia’s power, has said it may embrace a tentative settlement to increase rates by an estimated 17 percent rather than 24 percent, according to The Roanoke Times.
The power company asked the State Corporation Commission in May to rule on a request to increase the rate 24 percent. Appalachian began charging its customers an interim 22 percent rate increase this week.
The story said Appalachian Power was willing to compromise because of an agreement to increase its “return on equity,” which would allow the company to borrow money for capital projects and allow its shareholders to see a return on the investment.