A proposed compromise would sharply reduce the rate increases sought by Appalachian Power in Virginia, leaving residential rates unchanged for a year before a smaller increase takes effect.
State regulators are expected to rule by Jan. 15, 2027 — and the compromise cannot take effect without their approval.
Here's what to know
The proposed rate freeze would run from March 1, 2027, through Feb. 29, 2028, The Roanoke Times reported.
During the following year, ending Feb. 28, 2029, customers using 1,000 kilowatt-hours each month would see an average monthly increase of 92 cents.
Agreement among many parties brought the State Corporation Commission's hearing to a close on Oct. 19.
Whether the commissioners accept that compromise rests with them.
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More background
In its May 28 filing, Appalachian Power initially sought a substantially larger increase: about $9.10 on residential monthly bills, or roughly $109 annually.
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In that filing, the company described it as its lowest rate hike request in almost three decades.
That proposal would have increased base rates by $61.4 million overall.
Appalachian Power serves more than 1.1 million people across Virginia, West Virginia, and Tennessee, while Dominion Energy supplies electricity to most other parts of Virginia.
Across much of Southwest Virginia, Appalachian Power's status as a regulated monopoly puts its rate increases under SCC oversight, and the company must obtain the commission's approval before raising rates.
The compromise also proposes an authorized return on equity of 9.8%, a cap that limits the utility's allowed profit.
For households using 1,000 kilowatt-hours monthly, the second-year increase under the compromise would total about $11.04 over 12 months, compared with roughly $109 under the original request.
What's being done?
The three commissioners elected by Virginia's General Assembly can approve or reject all or part of the settlement, according to The Roanoke Times.
SCC staff members helped develop the agreement, but the commissioners retain the final say.
The commissioners need not follow staff recommendations and are "not bound in any way" by them, said Greg Weatherford, the SCC's information resources director, per The Roanoke Times.
The SCC declined to comment on the active case.
Appalachian Power spokesperson George Porter described the agreement as a balance between affordability and continued investment in grid reliability, vegetation upkeep, and customer programs, per The Roanoke Times.
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"Appalachian Power Company is committed to balancing the need for safe, reliable electric service with keeping energy affordable for customers," Porter said in a statement.
He also said the agreement is not yet final.
"The proposed settlement … would result in no increase for residential customers during the first year and an estimated increase of less than $1 per month in the second year for a typical residential customer using 1,000 kilowatt-hours per month," he added.
Where can I learn more?
Appalachian Power's proposed compromise comes as Virginia customers face other changes to their utility bills and service.
• Appalachian Power plans a 30-mile transmission line rebuild in Virginia to curb outages.
• Columbia Gas customers in Virginia face a $10.81 interim bill increase, with another hike pending.
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