Appalachian Power to reduce rates for Virginia customers due to federal tax reform
Appalachian Power announced Monday that it would implement a 50 million interim rate reduction for its customers due to federal tax rate changes, starting with their August bills.
The Federal Tax Cuts and Jobs Act, approved by Congress in late 2017, reduced the corporate income tax rate from 35 percent to 21 percent, effective Jan. 1, 2018.
Once the interim rate is fully implemented, a typical residential customer using 1,000 kilowatt-hours (kWh) per month will see a bill reduction of approximately $4.83. This rate reduction equates to a cost of approximately 11.1 cents/kWh residential customer using 1,000 kilowatt-hours per month. The total bill would be about $110.67.
The interim rate will be in effect until April 2019, when a permanent rate will be established.
Appalachian Power, a unit of American Electric Power (AEP), serves approximately 1 million customers in Virginia, West Virginia, and Tennessee. AEP delivers electricity and custom energy solutions to nearly 5.4 million customers in 11 states.
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