Appalachian Power (APCo) will reduce its fuel factor rate for Virginia residential customers by 24%, resulting in monthly savings starting Nov. 1.
The company requested the reduction from the Virginia State Corporation Commission (SCC), lowering the fuel factor rate from 4.139 cents per kilowatt-hour (kWh) to 3.133 cents per kWh. This change will save a typical residential customer using 1,000 kWh about $10.06 per month.
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The fuel factor makes up roughly 20% of a residential electric bill and covers the cost of fuel such as natural gas and coal used to generate electricity. APCo does not profit from these fuel costs or from power purchased on the market.
With the new rate, Virginia customers will pay 16.36 cents per kWh, which is below the national average of 16.48 cents per kWh, according to the Edison Electric Institute’s August 2025 report.
As the heating season approaches, APCo encourages customers to explore energy efficiency programs at TakeChargeVA.com and offers multiple payment options at AppalachianPower.com/Assist.
For more information, visit AppalachianPower.com.