Appalachian Power Rate Increase 2026: $9.10 Request in VA

Appalachian Power has asked Virginia regulators for a base rate increase that would add about $9.10 a month for a household using 1,000 kWh, roughly 5.4% on today’s bill. Nothing is approved. The State Corporation Commission (SCC) opened its evidentiary hearing on October 20, 2026, must rule by January 15, and no change can take effect before March 2027.

The request is Case PUR-2026-00044, the company’s 2026 biennial review. Appalachian Power serves much of Southwest and Central Virginia; Dominion Energy Virginia customers are not affected by this case. For where both utilities stand on rates and net metering, see our Virginia electric rate tracker.

The Request at a Glance

Sources: Appalachian Power’s Virginia rates page; ReisingerGooch regulatory summary, June 2026; Cardinal News, Oct. 1, 2026.

The company says the increase pays for tree trimming and reliability work, major storm recovery, inflation, material and labor costs, and new state-mandated programs. It calls the request its “lowest base rate increase in Virginia in nearly 30 years.” It says new data center customers pay for the infrastructure needed to serve them.

The $9.10 already nets out $8.38 a month in savings from securitization, a financing tool that spreads certain costs over a longer period at lower interest. Without that offset, the company’s own figures imply about $17.48 a month ($9.10 + $8.38).

What Other Parties Recommend

The SCC can approve all, part or none of the request, or lower base rates. Parties in the case have filed very different numbers:

• Attorney General’s Division of Consumer Counsel: its witness, Ralph Smith, testified that at a 9.325% return on equity the company would need only about $1.4 million in added revenue, according to Cardinal News and the law firm ReisingerGooch’s summary of the case.
• SCC staff: recommends base rate revenue decrease by $5.5 million, a 9.65% return on equity, keeping the basic service charge at $7.96, and moving tree-trimming costs into a separate rider with an application in 2027, according to Cardinal News’ October 1 report.
• Other intervenors: Sierra Club challenges the company’s power purchases, including from affiliates; the Virginia Poverty Law Center and Virginia Organizing seek limits on disconnections, including ending reconnection fees for nonpayment (ReisingerGooch).

Staff and consumer counsel recommendations are positions, not rulings. The SCC is not bound by any of them. No settlement had been reported as of October 20, 2026.

The Math

All figures are our arithmetic on the company’s examples at 1,000 kWh a month. They are requested amounts, not approved rates, and exclude local taxes.

• Percent increase: $9.10 ÷ $169.85 = 5.4%.
• Per year: $9.10 × 12 = $109.20.
• New example bill if approved as filed: $169.85 + $9.10 = $178.95 a month.
• Gap between request and consumer counsel: $61.4 million − $1.4 million = $60 million a year in revenue.

Your change depends on your usage. Homes that use more than 1,000 kWh, such as those with electric heat in winter, would see more in dollars; homes that use less would see less. The fixed basic service charge part of any increase is the same for everyone.

Other Proposals in the Case

Seasonal rates. The company has proposed an alternative residential rate design that bills usage above the first 800 kWh a month at a lower rate from December through March, offset by higher rates on the first 800 kWh in those months and on all usage the rest of the year, Cardinal News reported in June. Katharine Walsh, director of regulatory pricing and analysis for an AEP subsidiary, said the current structure creates “disproportionately high winter heating bills” for electric-heat customers. A second alternative would add a charge based on weekday daytime peak demand.

Budget billing. The company proposes to stop offering budget billing to new customers. About 26,000 customers use it now and would be grandfathered; the roughly 57,000 on its average monthly payment plan would keep that option (Cardinal News, June 25, 2026). Our explainer on how levelized billing plans work covers the difference.

A separate renewable charge. In a different case (PUR-2026-00065), Appalachian Power’s 2026 RPS plan requested about $115 million in the next rate year, about $3.99 a month at 1,000 kWh (ReisingerGooch). We could not confirm a decision in that case, so we have not added it to the $9.10.

What It Means for Solar Owners and Shoppers

• Offset kWh would be worth slightly more. Under Virginia’s net metering for Appalachian Power, which keeps annual one-for-one netting, each kWh your panels offset is credited at the retail rate. Any increase in per-kWh charges raises that value a little.
• The fixed charge can’t be offset. The proposed $1.04 rise in the basic service charge, from $7.96 to $9.00, applies with or without solar. See why fixed charges matter for solar savings.
• Seasonal rates could change the math. Under the proposed seasonal design (it is not clear whether it would be optional), rates outside December through March would be higher and heavy winter use would cost less. This is our reading, not the company’s: because Appalachian Power nets solar credits in kWh over a year, the effect on a solar home depends on its usage pattern. Wait for the final tariff before deciding.
• Use today’s rates in quotes. Ask any installer to show savings at the current $169.85 example bill, not at requested rates.

How to Comment and What Happens Next

The public hearing was October 19, 2026, and the evidentiary hearing opened October 20. The SCC takes written comments through its website or by mail, referencing Case No. PUR-2026-00044; check the case’s comment page for whether the comment period is still open. The SCC must issue a final order by January 15, and any new rates would start no earlier than March 2027. For how a request like this becomes a bill, see how electric rate cases work. In a separate Virginia case, Old Dominion Power has requested a larger increase for its five-county service area.

Limitations

The SCC’s docket documents could not be opened directly during this report. The request and bill figures come from Appalachian Power’s own Virginia rates page. Staff’s recommendation, the basic service charge figures, the seasonal and budget billing proposals, and the decision deadline come from Cardinal News reporting; consumer counsel’s position and the RPS figures come from a law firm’s regulatory summary. We will update this article when the SCC rules.

Sources and verification