For Roanoke Valley households already frustrated with their electric bills, Appalachian Power’s latest proposal raises a familiar question: How much more can customers afford?
The utility is asking Virginia regulators to approve a settlement that would hold residential base rates steady for one year, followed by a smaller increase the next.
That’s a substantial change from its original request—but it does not mean your electric bill is going down.
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💡 WHAT WOULD CUSTOMERS PAY?
If the State Corporation Commission approves the agreement:
▪️ March 1, 2027–Feb. 29, 2028: No residential base-rate increase under this proposal.
▪️ March 1, 2028–Feb. 28, 2029: An estimated increase averaging 92 cents per month for a residential customer using 1,000 kilowatt-hours each month.
Appalachian Power’s original request would have added approximately $9.10 per month—about $109 a year—for a residential customer. That request sought a total base-rate increase of $61.4 million.
The proposed compromise brings that increase down considerably. It does not erase what customers are already paying.
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📌 “NO BASE-RATE INCREASE” DOESN’T FREEZE YOUR BILL
This distinction matters.
The agreement concerns base rates, which are only part of an electric bill. Other charges and changes in electricity usage could still affect your total.
A year without this particular increase is not a guarantee that your monthly bill will stay the same.
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🏢 CUSTOMERS CAN’T SIMPLY PICK ANOTHER POWER COMPANY
Appalachian Power operates as a regulated monopoly across much of Southwest Virginia. Customers in its service territory generally cannot switch electric utilities the way they might switch phone or internet providers.
That makes the SCC’s review especially important: Appalachian Power needs the commission’s approval to change these rates.
The proposed agreement would also set the company’s authorized return on equity at 9.8%. That is a regulatory measure of its allowed return on shareholder investment—not a 9.8% profit margin on every customer’s bill.
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⚖️ WHO GETS THE FINAL SAY?
The settlement is NOT approved.
SCC staff helped negotiate the agreement, but the three commissioners who decide the case are separate from that staff and are not required to accept its recommendations.
The hearing ended October 19, earlier than expected, after many participating parties agreed to the compromise. A decision is expected by January 15, 2027. Commissioners can approve or reject the proposal in full or in part.
Google was also listed among the parties agreeing to the proposal. Appalachian Power is expected to serve Google’s planned data centers in Roanoke County and Botetourt County.
Appalachian Power says the settlement balances affordability with investments in reliability, vegetation management and customer programs.