SCC allows $26.1 million Appalachian Power rate adjustment
- January 4, 2012
The State Corporation Commission will allow Appalachian Power Co. to recover $26.1 million in costs linked to the acquisition and operation of the Dresden Generating Plant in Ohio.
The generating plant, which is under construction, was previously owned by a generation affiliate of Columbus, Ohio-based American Electric Power. Appalachian Power also is an AEP subsidiary.
The rate adjustment will become effective for service rendered on or after March 1. The new charge will increase the monthly bill of a residential customer using 1,000 kilowatt hours of electricity by approximately $2.08.
In Appalachian Power’s recent base rate case, the SCC reduced the company’s requested revenue increase by $27.53 million to reflect its planned acquisition of the Dresden facility.
The Dresden Generating Plant is a 580 megawatt natural gas-fired combined cycle power plant. Appalachian Power projects that Dresden will begin commercial operations on or about Feb.29.