ROANOKE, Va. (WJHL) — Appalachian Power has requested a reduction in the fuel rate for its Virginia customers.
The utility wants to reduce the current rate of 2.3 cents per kilowatt-hour to 1.999 cents per kilowatt-hour.
Appalachian Power said that would amount to $3.01 in savings for a residential customer using 1,000 kilowatt-hours a month.
The utility company’s request was included in its annual fuel factor update with the Virginia State Corporation Commission, which determines whether the rate should be increased or lowered each year.
“Managing fuel costs is an important part of service delivery,” Chris Beam, Appalachian Power’s president and chief operating officer, said in a news release. “What we’ve witnessed over the past several months is a drop in natural gas costs. Our request before the SCC ensures that approximately $40 million in savings is passed along to our customers.”
According to the utility, fuel costs make up about 20 percent of a residential customer’s electric bill.
If approved, the reduced rate will take effect in November.