New law to reduce Appalachian Power rates

Relief from skyrocketing monthly electric bills is on the way for Appalachian Power customers in western Virginia after the General Assembly unanimously passed and Gov. Glenn Youngkin signed the APCo Rate Reduction Act, effective July 1.

Intended to make power rates more affordable and championed by Southwest Virginia lawmakers, the law allows for securitization to reduce monthly bills, places a six-month moratorium on interest and late fees, a nine-month freeze on disconnect and reconnect fees, and prohibits rate increases during the winter.

Appalachian also must file for a reduction in fuel costs, which saves customers money on their monthly bills, propose alternatives to current billing practices to reduce the burden of high monthly bills during peak times and propose seasonal rates to minimize the impact of high electricity usage in the winter.

“It’s the most significant electric bill relief for Appalachian customers in years,” says Del. Jason Ballard, R-Giles, the House bill’s primary sponsor. “This is a really big win because people will see relief on their electric bills.”

A subsidiary of Ohio-based American Electric Power Co., Appalachian Power serves about 540,000 Virginia customers. The average residential bill has risen about $50 over the past three years to about $174 per month, but some customers say their monthly bills have grown by far greater amounts. The situation reached a tipping point following dramatic surges due to higher fuel prices, as well as costs to clean up after Hurricane Helene and other recent storms.

“I have constituents who pay over $1,000 a month for their power. Sometimes, they’re choosing between paying their electric bill and buying groceries or medicine,” says Ballard. “We had to do something.”

Appalachian President and Chief Operating Officer Aaron Walker responded to the legislation with the following statement: “Working with the legislature, we have made significant progress toward finding real solutions that improve affordability for customers while continuing to make investments to enhance reliability.

“We recognize some of our customers are struggling with their utility bills now and need immediate support,” he added. “We encourage those in need to reach out to us directly.”

Ballard says more bills addressing rate increases are expected to be introduced during the 2026 session: “This is a really good first step in reducing monthly rates, but it doesn’t go far enough. We have to do more to save customers money.”