Appalachian Power to file lowest base rate request in 30 years

ROANOKE, Va., May 29, 2026 – Appalachian Power Company (APCo) is requesting its lowest increase in a base rate review in Virginia in nearly 30 years, with savings generated through securitization under the APCo Rate Reduction Act helping reduce the impact on customer bills.

Securitization is a financing tool that allows APCo to spread large costs such as major storm recovery expenses over a longer period of time using lower-cost financing. Refinancing those costs this way enabled APCo to reduce the impact of rate changes by almost half.

“The APCo Rate Reduction Act is doing what it was designed to do by lessening the impact of bill increases for our customers,” said Brian Abraham, APCo president and chief operating officer. “We appreciate the legislators who helped make this law possible and supported a solution that is providing real benefits for Virginia families today.”

As required by Virginia law, APCo today filed its 2026 biennial base rate review with the Virginia State Corporation Commission (SCC), requesting a $61.4 million increase in base rates to help recover rising costs associated with maintaining and operating the electric system that serves more than 540,000 Virginia customers. The request is driven mainly by necessary investments in tree trimming and other reliability improvements, major storm recovery expenses, inflation, material and labor costs and new state-mandated programs. After applying $8.38 in monthly securitization savings, a residential customer using 1,000 kWh per month would see an increase of about $9.10 in their monthly bill.

“We understand that any increase can affect our customers’ household budgets, and we do not take that lightly,” Abraham said. “In my first few weeks with APCo, I’ve traveled across our service territory and seen firsthand how hard our team works to reduce costs for customers without sacrificing reliable service. That experience has also reinforced why securitization savings are so important to helping lessen the impact on customer bills.”

The SCC will now begin its review process, including discovery, public hearings and additional analysis before issuing a final decision. Any approved rate adjustment would not take effect until March 2027.

APCo offers a number of programs to help customers manage their energy usage and reduce their power bills. To learn more about these programs, visit AppalachianPower.com/save.