Appalachian Power Compromise Would Freeze Virginia Rates, Then Add 92 Cents a Month

Appalachian Power has proposed a Virginia rate compromise that would freeze residential rates for a year and then add 92 cents to the typical monthly bill, replacing a May 28 request for about $9.10 a month. The Cool Down reported the settlement, which needs State Corporation Commission approval by Jan. 15, 2027.

Inside Appalachian Power's Virginia Settlement

The freeze would run from March 1, 2027, through Feb. 29, 2028, according to The Roanoke Times. In the year ending Feb. 28, 2029, a household using 1,000 kilowatt-hours a month would see an average monthly increase of 92 cents, about $11.04 over 12 months. The original request would have cost that household roughly $109 a year.

The May 28 filing sought $61.4 million in additional annual base-rate revenue and was described by the company as its lowest rate hike request in almost three decades. The compromise also proposes an authorized return on equity of 9.8%, a cap on the utility's allowed profit.

A hearing before the three commissioners elected by Virginia's General Assembly closed on Oct. 19 after the parties reached agreement. Commission staff helped develop the agreement, but Greg Weatherford, the commission's information resources director, said the commissioners are "not bound in any way" by staff recommendations, per The Roanoke Times. Appalachian Power spokesperson George Porter said the agreement balances affordability with investment in grid reliability, vegetation upkeep and customer programs. "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," Porter said in a statement.

Appalachian Power's Virginia Footprint

Appalachian Power is a regulated, vertically integrated electric utility and a subsidiary of American Electric Power, serving about 500,000 accounts across Virginia, West Virginia and Tennessee, according to akta.pro company records. The same records list a February 2026 share of $175 million in U.S. Department of Energy funding to modernize and extend the life of the Amos and Mountaineer coal-fired plants in West Virginia. The records also describe 2026 transmission upgrades in Botetourt County, Virginia, serving Google's data center campus, with Google paying for all associated infrastructure.

Earlier Appalachian Power Filings and Projects

Appalachian Power filed for the base rate increase in May 2026, seeking $9.10 a month from the average Virginia residential customer beginning in March and $61.4 million more in annual revenue, Cardinal News reported. In August 2026, the utility issued two requests for proposals seeking a combined 800 MW of grid-scale battery storage in Virginia, with bids due Sept. 30, according to Pv-magazine-usa. In September 2026, it sought public feedback on a proposed 30-mile transmission line rebuild between Opossum Creek and Smith Mountain Lake, with construction expected to begin in spring 2028, The Cool Down reported.

The January 15, 2027 Ruling

The State Corporation Commission is expected to rule by Jan. 15, 2027, and the compromise cannot take effect without its approval. The commissioners may approve or reject all or part of the settlement.