Nick Rees Jul. 19, 2010, 10:38am
RICHMOND, Va. (Legal Newsline) - Virginia Attorney General Ken Cuccinelli is praising a decision by the State Corporation Commission to deny an approximately $154 million base rate increase that Appalachian Power Company was seeking.
The SCC, in rejecting the requested increase, did approve a $61.5 million rate increase, which was $92.5 million less than the utility company was seeking. Cuccinelli had argued on behalf of customers for the reduction in the rate increase.
Because of an expected $101 million reduction in fuel costs, customers of Appalachian Power Company can expect lower rates.
"As consumer counsel, the Office of the Attorney General was involved in this case from its inception," Cuccinelli said. "Along with the other parties, we made every reasonable effort to make certain that electricity prices remained as low as possible.
"We are pleased that, when coupled with the decrease in fuel costs, APCO's customers can now expect to pay less for electricity than they did last year."
The SCC, in reducing by $90 million the requested base rate increase sought by the utility, accepted all of Cuccinelli's recommendations in the case. The SCC also noted in its opinion that it could not address some of the issues that resulted in the lower rate increase because of its limited jurisdiction regarding certain FERC-approved matters.