On September 10th, the Virginia State Corporation Commission (SCC) will consider a critical rate case for Appalachian Power Company that could have lasting effects on our region.
As representatives of the Roanoke area, we hear regularly from constituents who are struggling under the weight of ever-increasing electric bills. Southwest Virginia residents already spend a disproportionate share of their income on energy costs. This disparity has only worsened in recent years, with Appalachian Power raising residential rates by over 46% since July 2021.
Now, Appalachian Power is seeking to increase its allowable profit margin from 9.5% to 10.8%, a move that would translate into an additional $10 per month for the average household. With many Southwest Virginia families already facing financial constraints, it should come as no surprise that a bill increase of this size will harm families, forcing tough choices between keeping the lights and heat on or paying for other necessities like food, rent and healthcare.
But this issue goes beyond the immediate impact on household budgets. The SCC must also consider the broader implications for our region’s future. As Southwest Virginia strives to attract new businesses and foster economic growth, competitive energy pricing is more important than ever. Unfortunately, Appalachian Power’s rates have been rising faster than those of other utilities in Virginia and across the Southeast. This rapid increase in energy costs is making our region less attractive to companies that might otherwise consider expanding their operations here.
Southwest Virginia has much to offer new businesses — world-class universities, excellent transportation infrastructure, a highly skilled workforce, a low cost of living, and some of the best outdoor recreation opportunities in the country. But businesses also need affordable energy. As utility costs climb, our region risks losing its economic edge.
We strongly urge the SCC to take a comprehensive view of this rate case. It is not just about whether Appalachian Power’s proposed rate increase is reasonable for the households already stretched thin. It is also about whether such a substantial boost in Appalachian Power’s profits is justified when weighed against the broader needs of our community. To keep life affordable for our residents and to maintain Southwest Virginia’s standing as a desirable place for business, we need energy prices that are fair, reasonable, and conducive to long-term growth.
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