Gov. Bob McDonnell was joined by delegates and senators from throughout Southside, western, and Southwest Virginia this morning as he signed his first bills since taking office. The Governor signed HB 1308, patroned by Del. Bill Carrico (R-Galax) and SB 680 patroned by Sen. Phillip Puckett (D-Tazewell), identical pieces of emergency legislation that will immediately reduce the cost of electricity to Appalachian Power’s residential customers by approximately 12 percent.

The legislation will suspend the “interim rates” that went into effect in December when the company filed an application for a rate increase with the State Corporation Commission. The law will no longer allow interim rates in cases like this one, and APCo agreed to apply the law immediately to their current rates.

The legislation signed today was developed in response to the concern of families and businesses arising out of APCo’s multiple rate increases in recent years. In the last few years, APCo’s rates have moved from among the lowest in the country to just above the national average, resulting in significant rate shock to its customers. The most recent “interim rate” increase —in December, 2009—came only one year after a 19.3 percent increase was approved by the Commission, and just as APCo’s customers headed into a colder than normal winter and the higher cost of power associated with peak demand.

The Senate bill can be read here. And the House bill can be read here.