RICHMOND, Va. (WDBJ) – The APCo Rate Reduction Act (HB2621) passed the House and Senate at the Virginia General Assembly and is on its way to Governor Youngkin’s desk, according to the Virginia General Assembly.
Delegate Jason Ballard introduced HB2621, designed to lower the costs of Appalachian Power (AEP) bills during winter months. Ballard listed the details of the legislation,
- Allows for securitization, which reduces monthly bills for customers.
- Six month moratorium on interest and late fees.
- Nine month moratorium on disconnect and reconnect fees.
- No increase in rates during the winter months of Nov, Dec, Jan, Feb.
- APCo must file for a reduction in fuel costs, which saves customers money on monthly bills.
- APCo must propose alternatives to current billing practices, which is designed to lesson the burden of high monthly bills in peak seasons.
- APCo must propose seasonal rates, which is also designed to minimize the impact of cold winter months and high electricity usage.
- The State Corporation Commission must consider public input and comments during all rate cases.
The Virginia General Assembly provided a summary of the legislation:
Authorizes Appalachian Power to petition the State Corporation Commission for a financing order for securitized asset costs, as defined in the bill. The bill creates the securitized asset cost charge and provides that the revenues generated by this charge, known as securitized asset cost property, are a property right that can be transferred and pledged as security for the securitized asset cost bonds. The bill establishes the procedures for creating, perfecting, and enforcing the security interest in securitized asset cost property. The bill also provides that, for Appalachian Power, certain rate adjustments shall not occur during the months of November through February and any such adjustments issued between September and December shall become applicable beginning on March 1 of the following year. The bill makes changes to certain provisions governing biennial rate reviews for Appalachian Power, including permitting the utility to recover storm recovery costs incurred after January 1, 2024 that are not currently included in rates or otherwise recovered through a securitization order, considering the implementation of residential seasonal rates, and considering alternatives to budget billing. The bill excludes certain costs from being recovered through a rate adjustment clause. The bill requires the State Corporation Commission to invite the public to comment on any biennial rate case for Appalachian Power. Finally, the bill permits certain large retail customers to opt out of financing its pro rata obligation for securitized asset cost charges by electing to fully satisfy its obligation.
Copyright 2025 WDBJ. All rights reserved.