
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, October 21, 1994                   TAG: 9410220058
SECTION: BUSINESS                    PAGE: A11   EDITION: METRO 
SOURCE: STAFF REPORT
DATELINE:                                 LENGTH: Short

PUBLIC HEARING SET ON FUEL FACTOR CHARGES

The Virginia State Corporation Commission said Thursday it has scheduled a Nov. 9 public hearing on Appalachian Power Co.'s request to reduce its fuel factor charges by $28 million a year.

The fuel factor is an extra charge added to customers bills to cover the cost of fuel needed to generate electricity in excess of costs covered in the company's base rates.

Apco has proposed reducing its fuel factor from 1.588 cents per kilowatt hour to 1.371 cents per kwh, which would amount to a reduction of $2.17 for a customer using 1,000 kwh of electricity.

The company has proposed that the reduction take effect on Nov. 15. If its approved, though, the move might not have that much impact on customer bills would expect because Apco also has requested a $15.7 million base rate increase and proposed it take effect on an interim basis on Nov. 15.

An interim rate would be subject to refund if it was not eventually approved by the commission.

If the SCC approves the fuel factor decrease and the base rate increase, the net reduction for Virginia customers would be $12.3 million. For a residential customer using 1,000 kwh of electricity a month that would amount to a reduction of roughly 29 cents, according to the SCC.

by CNB