CHARLESTON, W.Va., December 14, 2010 – Appalachian Power and Wheeling Power, together with the Public Service Commission of West Virginia (PSC) Staff, the PSC Consumer Advocate Division and other intervening parties, today filed a settlement agreement in the companies’ base rate case seeking the Commission’s approval. The agreement provides for a $60 million or 5.36 percent increase in the companies’ revenues, effective March 31, 2011.
 
PSC commissioners will consider the settlement agreement and all other evidence presented in the case, and will rule on the case by the March 31 statutory deadline.
 
If approved by the Commission, the revenue increase will raise electric bills about 16 cents a day for typical residential customers. Residential customers who use 1,000 kilowatt-hours a month will see their monthly bill rise from $86.40 to $91.22, an increase of 5.53 percent. The increase for other customer classes, like commercial or industrial customers, will vary.
 
Residential Customer Usage and Costs

Usage in KWH	Current Rate	Proposed Rate	Monthly Increase
1,000	$86.40	$91.22	$4.82
2,000	$162.77	$171.34	$8.57

 
The parties to the case engaged in settlement discussions concerning all aspects of the filing, and reached agreement on a comprehensive series of proposals to recommend to the Commission as a fair and just settlement.
 
“This settlement reflects the compromises of all the parties to the case on their various positions. I commend them for keeping the best interests of all stakeholders in mind,” said Charles Patton, Appalachian Power president and chief operating officer.
 
As part of the settlement, the companies will make additional donations of $250,000 to the Dollar Energy Fund’s West Virginia Utility Assistance Program in 2011 and 2012, for a total additional contribution of $500,000.
 
Also as part of the settlement, the companies will recover approximately $18 million in extraordinary costs incurred in last winter’s major storms over a period of eight years.
 
Rates for Appalachian’s customers are among the lowest in the country. The national average residential price for electricity is 12.02 cents per kilowatt-hour, compared to the settlement’s proposed 9.12 cents. Customers are urged to manage their energy use wisely and to visit the company’s website (www.AppalachianPower.com) for energy-saving tips and a free home energy calculator that can help explain how to conserve electricity. The site also provides information on payment options available to customers.
 
Appalachian Power provides electricity to 1 million customers in Virginia, West Virginia and Tennessee (as AEP Appalachian Power) and Wheeling Power provides electricity to customers primarily in Marshall and Ohio counties in West Virginia. Both companies are units of American Electric Power, one of the largest electric utilities in the United States, with more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined.