30-01-2025
APCo Rate Reduction Act aims to lower power bills in Southwest Virginia
SOUTHWEST, VA (WJHL) — January has been one of the coldest on record for Southwest Virginia and as the thermometer falls, electric bills rise higher. Virginia Delegate Terry Kilgore (R-Scott) said prices are too high.
'You know, a lot of the calls from consumers are over higher electric rates, especially during this last month when it was so cold,' Kilgore told News Channel 11.
Kilgore and Delegates Israel O'Quinn and Jason Ballard co-sponsored a bill that he said would lower Appalachian Power's rates.
The APCo Rate Reduction Act passed 9-0 in the energy subcommittee. Still, Kilgore and other Southwest Virginia delegates need support from their fellow lawmakers to the north whose constituents aren't Appalachian Power customers.
'That it has been a challenge,' admits Kilgore. 'There's not many of us from Roanoke West. There are seven members in the House of Delegates, and in Fairfax County (alone), there are 18. So that there's your problem right there. And we've had to convince our folks shown on these electric bills that folks have and that folks have emailed us at $900 to a thousand dollars for a single-family house. That's outrageous.'
House Bill 2621 calls for an overhaul of the rate-setting process of Appalachian Power that delegates say will lower bills for customers, including:
Bans rate increases during winter months
Bans rate increase until March 2026
Review rates yearly instead of every two years
Requires State Corporation Commission to review 'seasonal rates'
Simplify customer bills
Fuel Cost reduction
'Securitize' or refinance existing coal plants
Co-sponsor Delegate Israel O'Quinn (R-Washington County) stated that the potential cost savings for customers could be historic.
'It is the largest single decrease that anyone around the capital can remember happening all at once,' said O'Quinn via Zoom. 'So, again, this is certainly a work in progress. But what we've been able to piece together with this bill is a significant amount of savings for ratepayers and will help to ease some of that sticker shock that people get when they when they open their bills during the cold winter months.'
O'Quinn said there is a companion bill in the Senate, and he expects some tweaks to the current bills as they move through committees, but said the legislation could be up for a vote in just weeks.
Lawmakers aim to reduce the average customer's kilowatt-hour cost by 13 percent.
News Channel 11 has reached out to Appalachian Power for a statement but did not receive one.
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