Legislation to soothe the financial strain felt by many Appalachian Power Co. customers passed the General Assembly overwhelmingly on its last day in regular session.
The House and Senate voted unanimously Saturday to approve a bill from Del. Jason Ballard, R-Giles, that he calls the APCo Rate Reduction Act.
Although the measure was not as sweeping as originally proposed, it contains more than a half-dozen provisions that will provide relief to Appalachian ratepayers who are hit once a month by the rising cost of electricity.
Among the changes: Appalachian will be prohibited from raising rates during the winter months, when electricity use is generally the highest, and for residential customers there will be moratoriums on late fees and other charges that can add to the financial burden.
“This legislation will provide the most significant electric bill relief to APCo customers in years,” Ballard said in a statement Sunday.
“For too long, my constituents – and those throughout APCo territory – have suffered through unreasonably high electric bills that put people in the unwinnable position between paying their electric bill or putting food on the table,” Ballard said.
In the waning days of the legislative session, Ballard’s bill, HB-2621, was sent to a conference committee to reconcile differences with a similar bill proposed by Sen. Mark Peake, R-Lynchburg. Peake’s SB-1076 also passed the House and Senate with no opposition.
The bills, which must be signed by Gov. Glenn Youngkin before taking effect, allow Appalachian to implement a financial practice known as securitization. That process will entail pooling some of the utility’s assets and costs into interest-bearing securities that are sold to investors.
Securitization is expected to lower bills, at least in the short term, by spreading the utility’s costs out over a longer period of time.
As electric bills have risen rapidly in recent years, lawmakers whose constituents are Appalachian customers have been pushed to stop – or at least slow – the financial pain. Of more than half-dozen bills aimed at Appalachian introduced during this year’s legislative session, Ballard’s and Peake’s were the only ones to survive.
Appalachian currently charges $173.95 a month for an average residential customer, or a home that consumes 1,000 kilowatt hours during the billing cycle. That’s nearly triple the rate it charged in 2007.
“Working with the legislature, we have made significant progress toward finding real solutions that bring relief to our customers, and we will continue to do so,” Appalachian spokesman George Porter said in a recent statement.
“We recognize some of our customers are struggling with bills now and need immediate support. We encourage those in need to reach out to us directly at 1-800-956-4237 or via Facebook as soon as possible,” the statement read.
The utility serves about 540,000 homes, businesses and institutions in Western and Southwest Virginia.
HB 2621 includes a six-month moratorium on interest and late fees for residential customers, as well as a nine-month moratorium on charges to disconnect service for delinquent accounts and an additional cost to reconnect.
Appalachian must also consider lower seasonal rates under the bill, and changes to a billing program that allows customers to pay an average cost over 12 months – but often includes a large balloon payment at the end to make up any difference.
“This was a heavy lift during a short legislative session,” Ballard said of a lengthy bill that was frequently revised.
“However, doing nothing was not an option,” he said. “I appreciate every constituent who shared their story with my office – this is how to get things done in Richmond.”
Laurence Hammack (540) 981-3239