Appalachian Power says it will not seek a fuel factor increase.
The fuel factor is a way for Appalachian Power to recover the cost it incurs for fuel, coal, and purchased power. The rate is often adjusted annually, according to Appalachian Power spokesperson Todd Burns. Appalachian Power does not profit on the fuel factor, according to the company.
The current fuel factor is 2.953 cents per kilowatt-hour. It’s been in place since June 2012.
Even though Appalachian Power is not seeking an increase, its proposal is still subject for review and approval by the SCC.
Here is the news release from Appalachian Power:
Appalachian Power, a subsidiary of American Electric Power (NYSE: AEP), today filed a request with the Virginia State Corporation Commission (SCC) to leave the current fuel factor component of rates unchanged.
The fuel factor is aimed at dollar-for-dollar recovery for the cost Appalachian Power incurs for fuel, primarily coal, and purchased power. It is often adjusted annually. There is no profit in the fuel factor.
The current fuel factor is 2.953 cents per kilowatt-hour and has been in place since June 2012. The proposal is subject to the review and approval of the SCC.
Appalachian Power has approximately 1 million customers in Virginia, West Virginia and Tennessee (as AEP Appalachian Power). It is a unit of American Electric Power, one of the largest electric utilities in the United States, which delivers electricity to more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined.