Pet of the Week
News
APPALACHIAN POWER
Appalachian Power seeks no rate increase for 2027, slight increase for 2028 (copy) (copy) (copy) (copy)
Appalachian Power Co. proposed a compromise for rate increases over the next two years, and sought approval from the State Corporation Commission in a hearing this week.
The power company is seeking approval to not raise residential rates for one year, then increase rates by an average of 92 cents per month for a residential customer using 1,000 kilowatt hours (kWh) per month for the year after. The first year of this period will run from March 1, 2027 through Feb. 29, 2028. The second year will start then and finish on Feb. 28, 2029.
If the SCC approves the stipulation, Appalachian Power’s authorized return on equity — meaning the amount the utility company would be allowed to profit — would be 9.8%.
Because Appalachian Power is a regulated monopoly in its service area, it cannot simply increase prices without approval from the State Corporation Commission. The SCC held a hearing to decide whether or not to approve the proposed rate increases. However, the hearing ended Monday, several days earlier than scheduled, since many of the parties involved agreed to a stipulation. The parties submitted the stipulation — which is essentially a settlement agreement — for approval; a verdict is expected by Jan. 15. The SCC must review the stipulation and can approve or deny it in full or in part.
As a regulated utility, Appalachian Power serves much of Southwest Virginia, while Dominion Energy supports most of the rest of the commonwealth. Appalachian Power has 540,000 customers in Virginia, totaling more than 1.1 million in Virginia, West Virginia and Tennessee combined.
On May 28, Appalachian Power submitted a filing requesting approval from the SCC to raise the monthly bill for residential customers by about $9.10 starting next year — or about $109 for the whole year. That would have amounted to an increased total increase in base rates of $61.4 million. At the time, the company said its request was its smallest requested increase in nearly 30 years. Five months later, Appalachian Power substantially lowered its request.
One of the groups that formed the stipulation proposal was the staff of the State Corporation Commission, a group of experts who advise the commissioners. The three commissioners who will decide the case are elected by the General Assembly and are completely separate from the staff members who participated in the stipulation. Greg Weatherford, the SCC’s director of information resources, said the commissioners are “not bound in any way” by recommendations from the staff.
Google, Kroger, Walmart and the Sierra Club were some of the other stipulating participants listed in the proposal, working collectively to seek approval from the SCC.
On Aug. 26, Carolyn Berry, a partner at Bates White Economic Consulting, supplied testimony on behalf of Google in the case. Her testimony — both written and verbal — centered around the impact of new policies on “large load customers,” meaning industrial or commercial facilities that need substantial amounts of electricity, such as data centers.
Google has announced data center projects at the Greenfield business park in Botetourt County and the Wood Haven Technology Park in Roanoke County. Appalachian Power will supply utilities for both of those projects.
The SCC declined to comment, since the case is still active. Representatives for Appalachian Power did not reply to requests for comment as of publication.
Sam Mostow (540) 981-3251
News
Spanberger: Virginia needs a plan for cyber attacks (copy) (copy)
Virginia needs a plan for responding to cyberattacks and hardening its IT infrastructure as artificial intelligence makes hacks ever more of a threat, Gov. Abigail Spanberger said Friday.
She issued a formal directive launching an AI Task Force to consult with cutting-edge developers of AI and other public and private sector experts to come up with the plan.
Spanberger said she’s concerned cyber threats are becoming more serious because of processes that allow AI agents to create more capable versions of themselves without human input.
“Despite federal inaction, the Commonwealth will continue to address the very serious concerns Virginians have about the development of this technology. We’ve already seen how real it is,” Spanberger said.
“AI is rapidly reshaping the cyber landscape — evidenced by Anthropic AI agents taking improper actions on government websites across the country, including submitting fake Freedom of Information Act requests on a Virginia Department of Education website,” she said.
Spanberger said no sensitive information was accessed, but added: “That makes me no less concerned about the future risks that lie ahead.”
The directive says the state expects AI technology companies to collaborate with the task force to explain risks, including those involving models that they have not yet released to the public.
The directive calls on the companies to work with the state to protect critical systems and infrastructure.
In addition, the directive said the task force will require AI technology companies to provide confidential briefings and reports about issues and risks.
“This new executive directive is just the beginning,” Spanberger said.
Dave Ress (804) 649-6948
Commonwealth Transportation Board raises maximum grant amount for Rail Industrial Access Program (copy) (copy) (copy)
Last week, the Commonwealth Transportation Board (CTB) approved an increase in the maximum amount of state funding available for future Rail Industrial Access (RIA) projects. The program incentivizes private business to make siting and expansion decisions based on moving goods by rail. The maximum grant amount for individual applicants will rise from $750,000 to $1,000,000.
The RIA program mitigates traffic on local roads, highways and interstates by supporting businesses to shift the movement of their goods from trucks onto railcars. Funds can be used to build new rail spurs or rehabilitate existing rail infrastructure to connect businesses to Virginia’s extensive freight rail network.
“According to CNBC, Virginia is the #2 state for infrastructure and the #3 top state for business in the country,” shared DRPT Director Mariia Zimmerman. “Innovative partnerships like those fostered through the Rail Industrial Access program allow the state and private firms to achieve more than either could alone and make Virginia a competitive state for transportation and industry. Raising the maximum grant amount for this program helps improve our rail infrastructure and the Virginia businesses that move their goods across it.”
Between 2018 and 2026, the RIA grant program has resulted in over $38 million in combined state and private investment. A modest public contribution of about 3% of total project costs has delivered $1.55 billion in private capital investment to Virginia through the RIA program helping to move goods affordably and diverting over 150,000 truckloads to improve safety, mitigate traffic and reduce carbon emissions in rural and urban communities across the Commonwealth.
Each project represents an investment by Virginia in job growth, reduced congestion, and economic development. The increased grant amount helps to lower barriers in access to our state’s robust rail network for agricultural, manufacturing and other businesses.
RIA applications are accepting on a rolling basis all year. For more information on the Rail Industrial Access grant program and how to apply, visit Rail Industrial Access (RIA) – DRPT (virginia.gov).
