Wednesday, August 8, 2012
By KEN BRADLEY - Staff Writer
Appalachian Power Co. (APCo) officials said Monday that a windstorm that hit much of Virginia in late June causing massive power outages cost the company $37 million and may be recouped through a rate increase to customers.
Todd Burns, APCo communications manager, said the cost of the storm will be part of an APCo proposal to the State Corporation Commission (SCC) that will be filed in March.
"We don't know at this point if it will result in a rate increase," Burns said Tuesday.
The APCo proposal will also take into account yet-to-be determined factors, such as operational costs, to see if the base rate should change, Burns said.
Should the SCC approve a rate increase to help cover the cost of the storm, Burns said it would not be on monthly bills until February 2014.
American Electric Power (AEP) has a contingency fund to cover the cost of storm damage, but it is not sufficient for the $37 million price tag resulting from the storm, Burns said. AEP is the parent company of APCo.
The windstorm, which hit on the evening of June 29, downed power lines and trees throughout Virginia. It took more than a week to restore power to about 243,000 customers in Virginia, Burns said.
APCo crews and workers from 22 other states totaled about 5,200, Burns added.