Virginia SCC regulators approve $1.80 service fee for Appalachian Power customers

State regulators have approved a service fee of $1.80 a month for most customers of Appalachian Power Co. in western Virginia.

The Roanoke Times reported Wednesday that the fee will be used to protect lower-income customers from the increased costs of switching to renewable energy.

Virginia’s Clean Economy Act requires Appalachian Power and Dominion Energy to use carbon-free sources by 2050. The law acknowledges that the change could lead to higher bills. So, it created the Percentage of Income Payment Program. The program requires Appalachian and Dominion to cap the bills of their low-income customers.

The State Corporation Commission issued an order last month that allows Appalachian to collect $25 million annually through the service fee to cover some of the costs.

The SCC has not set an effective date for the fee, ruling that more details need to be worked out. Those include how many low-income customers would qualify for the program. There are 500,000-some Appalachian customers in Virginia.

(IMAGE: Appalachian Power)