A rise in the cost of coal, natural gas and purchased power over the past year will increase the rate Virginia customers pay for electricity starting Nov. 1.
Appalachian Power, a utility subsidiary of American Electric Power (Nasdaq: AEP) that serves Appomattox County, Lynchburg and others, outlined the effect of rising energy market prices and the steps it is taking to reduce customer costs in its annual fuel factor update filed this week with the Virginia State Corporation Commission (SCC).
The SCC reviews the company's fuel factor each year to determine whether it should be increased or lowered. Fuel costs are the portion of a customer's bill used to recover the cost of purchasing natural gas and coal for its power plants, as well as the cost of purchased power. Appalachian Power does not earn revenue from fuel.
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