NEWS: Lawmakers announce bipartisan legislation to rein in Appalachian Power bills in southwest Virginia

FOR IMMEDIATE RELEASE

Elaina Corfield, Legislative Director for Delegate Sam Rasoul
[email protected] | 804-698-1038

Tuesday, January 20

Lawmakers announce bipartisan legislation to rein in Appalachian Power bills in southwest Virginia

RICHMOND, Va. — Lawmakers from southwest Virginia today unveiled a bipartisan omnibus bill (House Bill 1075 and Senate Bill 961) aimed at curbing rising electric bills for Appalachian Power Company (APCo) customers and strengthening oversight of the monopoly utility.

The bipartisan package, carried by Delegate Sam Rasoul (D – HD 38), Delegate Joe McNamara (R – HD 40), Senator David Suetterlein (R – SD 4), and Senator Creigh Deeds (D – SD 11) responds to years of sharp rate increases that have hit APCo customers harder than nearly any other region in the country. The bills focus on stronger regulatory scrutiny, lower-cost power options, and protections against utilities shifting unnecessary costs onto ratepayers.

Appalachian Power customers have seen their electric rates increase by 159% since 2007, far outpacing inflation and increases in other parts of the state.

“Our electric bills are too high. Southwest Virginia families are paying more and more each year just to keep the lights on, and those increases are the result of utility decisions that put profits ahead of people,” said Del. Rasoul. “This bipartisan package puts the interests of customers ahead of monopoly profits.”

The legislative package includes measures to:

Strengthen oversight and affordability protections: Requires the State Corporation Commission (SCC) to conduct APCo’s 2026 biennial rate review under enhanced affordability standards. The bill prevents any increase to the utility’s return on equity that is not adequately justified and directs regulators to closely examine rate impacts, customer disconnections, and the financial risks shifted onto customers.
Prevent customers from paying higher prices when cheaper electric power is available: Blocks APCo from charging ratepayers for the costs of uneconomic out-of-state generation and above-market power purchases from affiliated companies, practices that can inflate customer bills.
Ensure the lowest-cost capacity procurement: Directs the SCC to evaluate the high prices related to APCo’s Fixed Resources Requirement to minimize customer impacts.
Target escalating transmission costs: Directs the SCC to review APCo’s transmission-related costs, planning practices, and cost allocation to address one of the fastest-growing and least transparent drivers of higher bills in APCo territory.
Reduces future storm recovery costs: Requires APCo to develop a weather resilience plan for SCC review, aimed at reducing the growing storm recovery costs caused by extreme weather events, which are currently passed directly on to customers.

“Most businesses become more profitable when they maintain quality while becoming more efficient,” said Sen. Suetterlein. “Current law makes it so power monopolies are the rare business that only become more profitable by increasing their own costs. This legislation will incentivize reliable and more affordable electricity for Virginia families and businesses.”

“High electric bills place a real strain on rural communities and fixed-income households,” said Sen. Deeds. “Affordability is not a partisan issue, and it is our responsibility to ensure the system is working in the public interest.”

“Southwest Virginians are struggling under soaring electric bills, which are padding utility profits,” said Del. McNamara. “This package is about restoring basic fairness. Utilities should not be guaranteed profits at the expense of families, seniors, and small businesses who are already stretched thin. It is past time for stronger oversight and real accountability.”

Watch the livestream from today’s press conference here.