VPLC Advocacy Helps Secure $85 Million Savings for Utility Customers

SCC demands utility company assist struggling customers

Friday, December 6th, 2024

Collectively, Appalachian Power customers avoided an $85 million rate hike in their monthly utility bills after the State Corporation Commission (SCC) denied the company’s request for a substantial rate hike.

As part of the decision, regulators directed Appalachian Power to collaborate with Virginia Poverty Law Center (VPLC) to develop plans that reduce service shutoffs and expand energy assistance programs for low-income households.

Dana Wiggins, VPLC’s Director of Economic Justice, testified before the SCC, advocating for improved outreach to inform eligible customers about payment assistance programs and offering more flexible payment plan options.

“We are pleased that our advocacy helped save customers millions in overcharges, but we are particularly happy that the SCC ordered Appalachian Power to come up with a plan to reduce disconnections,” said Wiggins.

While customer bills will still see a modest increase of about $2 a month next year, this is a significant reduction from Appalachian Power’s original proposal.

The SCC’s public record on the case includes thousands of objections to the rate hike from residents, lawmakers, and community and business leaders, reflecting widespread opposition to the utility’s original request.

Meanwhile, parent company American Electric Power reported that its seven top executives earned a combined $30 million in 2023, even as customers struggled with rising energy costs.