Note: There will be no At Issue newsletter next week due to the holiday. Have a happy and safe Thanksgiving.

AOBA Supports Proposed Settlement in Virginia Rate Case

Virginia Power submitted base rate filings to the Virginia Commission, which, as amended, proposed to increase Virginia base rates by approximately $250 million annually to meet a requested revenue requirement of $5.7 billion.

On Nov. 5, 2009, AOBA entered into a proposed settlement of the Virginia Power rate cases with the state’s Attorney General’s Office, MeadWesvaco Corp, Wal-Mart Stores, Kroger, International Paper, and Chaparral.

Under the proposed settlement:

• Base rates would remain at pre-Sept. 1, 2009 levels.
• Ratepayers would receive $268 million in rate reductions.
• Virginia Power would not charge customers for certain generation and transmission costs that exceed the $268 million in rate base reductions through Dec. 31, 2010.
• An additional $129 million in Virginia Power fuel revenues will be returned to customers.

AOBA members will not experience any increases in surcharges through 2010. The Virginia Commission is reviewing the proposed settlement.