VANCEBURG — Despite a higher deficit on electricity costs, citizens are not expected to see rate increases on their electric bills following a decision made by the plant board.

An unfavorable true-up following an annual meeting with Appalachian Electric Power officials was discussed at a Vanceburg Electric Plant Board meeting Tuesday evening. Instead of raising electric rates to offset the deficit of the report, the board agreed to maintain the current rate.

According to Bill Tom Stone, superintendent of the board, the plant buys electricity from Kentucky Power and AEP every year. As a requirement of the contract, the groups conduct a ‘true-up,’ which shows the board the cost of the electricity as it was sold and the actual value of the electricity sold, then the difference that has to be paid back to the companies.

This year’s true-up showed $34,000 as the amount sold to the plant, but the impact turned the cost into $100,000, according to Stone.

“Next year, the rates we will pay will be $100,000 more than usual,” Stone said.

The reason for this deficit, Stone said, is simply a lack of demand of energy across AEP’s systems last year. He said facilities are built to meet the demand of energy, but when demand is low, deficits are inevitable.

Despite the higher rates, Stone said the board has seen plenty of favorable true-ups in the past to offset the difference. He said he is confident the plant will be able to cover the cost, provided the winter season is favorable.

“We keep our rates pretty steady,” he said.

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Jonathan Wright

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