ROANOKE, Va., Oct. 22, 2025 – Lower energy prices, combined with Appalachian Power (APCo) incorporating more renewable sources of power into its energy mix, resulted in the company requesting a reduction in its fuel factor rate from 4.139 ¢/kilowatt-hours (kWh) to 3.133 ¢/kWh from the Virginia State Corporation Commission (SCC). An approved interim rate resulting in monthly savings of $10.06 for a Virginia residential customer using 1,000 kWh will take effect Nov. 1. The fuel factor constitutes approximately 20% of a residential customer's electric bill.
APCo does not profit from the fuel purchased, primarily natural gas and coal, to generate electricity at its power plants, or from power purchased from the market.
With the new rate, APCo's Virginia residential customers will pay 16.36 cents/kWh, below the national average of 16.48 cents/kWh, according to the Edison Electric Institute's August 2025 report.
| Residential Customer using 1,000 kWh |
Rate (¢/kWh) |
Amount ($) |
Total Monthly Bill ($) |
| Current Fuel Factor (2024 interim rate)* |
4.139 |
$41.39 |
$173.63 |
| New Fuel Factor (2025 interim rate)* |
3.133 |
$31.33 |
$163.57 |
| Reduction in Bill |
|
|
$10.06 |
*Awaiting SCC approval for final order
As the heating season approaches, APCo encourages customers to explore available energy efficiency programs at TakeChargeVA.com and the company’s multiple payment options at AppalachianPower.com/Assist.