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Working to Minimize Electric Bill Increases through Securitization

At Appalachian Power, we're committed to balancing the cost of delivering reliable energy with protecting your household budget. Proposing securitization to our West Virginia and Virginia regulators is one of the ways we plan to continue providing safe, dependable service - today and into the future.

How Securitization Helps Manage Energy Costs

Securitization is a financing tool that enables us to recover certain costs through lower-interest bonds rather than traditional recovery methods. Energy costs can change quickly, but your electric bill doesn't jump up and down with every shift in the market. That's because we can't immediately change customer rates when our cost to provide service rises. Instead, we carefully track these costs over time.

Securitization is a tool that allows us to manage these unrecovered costs in a way that protects you from a significant bill increase at once. It provides a less expensive way to improve our service.

What is Securitization?

  • Securitization is a financial tool that groups unrecovered costs - such as major storms, coal and natural gas expenses and power plant investments - and spreads them out over an extended period.
  • It's like refinancing a home to make the payments more manageable and smaller.
  • This tool helps prevent sudden, sharp increases in electric bills and supports long-term price stability.

Why Securitization Matters to You

  • It will lower the impact on your monthly bills compared to traditional cost recovery mechanisms.
  • In Virginia, if accepted by the State Corporation Commission, it will reduce monthly bill amounts. In West Virginia, if accepted by the Public Service Commission, it will offset nearly 75% of the current rate increase request.
  • It will allow us to make substantial investments in maintaining a reliable electric system without overwhelming our customers.

Contact the Public Service Commission of West Virginia or the Virginia State Corporation Commission, and let them know you support securitization.

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