The Smyth County Board of Supervisors (BOS) convened on May 22, 2025, for a comprehensive meeting that tackled key community issues ranging from Appalachian Power updates and utility rate adjustments to significant budgetary concerns and school funding.
An AEP representative, Jacob Holmes, presented an in-depth report to the BOS, shedding light on recent and upcoming rate adjustments, customer assistance programs, and ongoing operational challenges. A major theme was the impact of state legislation on rate structures and customer protections.
One major topic of discussion was the Appalachian Rate Reduction Act, set to take effect July 1, 2025. Signed into law by Governor Glenn Youngkin, the act includes two provisions aimed at lowering electricity rates. Holmes proceeded to discuss a key element; the 5% decrease in customer power bills coming in November, a result of policy decisions dating back to 2022 when AEP purchased fuel for power plants. Because fuel costs are passed directly to customers, AEP previously spread those costs across bills over several years — a mechanism that concludes in November.
Holmes continued to explain AEP anticipates a 10% rate decrease in early 2026, contingent on the State Corporation Commission (SCC)’s caseload. This decrease ties into provisions that allow AEP to securitize older power plant investments.
Another critical legislative change will prevent rate increases during winter months, creating a lower winter rate and requiring AEP to balance rates across the rest of the year. Holmes went on to explain The SCC reportedly prefers single-rate structures, meaning more regulatory adjustments could follow.
Also under this legislature, reconnection fees are suspended until March 2026, and late fees are waived through the end of 2025, offering customers additional relief.
AEP continues to promote its customer assistance programs, including:
- LIHEAP (Low Income Home Energy Assistance Program): Federally funded and accessed through local DSS offices.
- PIPP (Percentage of Income Payment Program): Allows customers to commit a fixed percentage of their income toward power bills.
- Energy Efficiency Programs: Free in-home audits and coupon incentives to improve energy use.
- Average Monthly Payment Plan: Encouraged by AEP for budgeting stability, especially as the Balance Billing program phases out.
Links to available assistance programs:
AEP Payment Assistance: https://www.appalachianpower.com/account/bills/pay/assistance/
Take Charge VA: https://takechargeva.com/
Average Monthly Payments: https://www.appalachianpower.com/account/bills/pay/amp
PIPP: https://www.dss.virginia.gov/benefit/PIPP/index.cgi
LIHEAP: https://www.dss.virginia.gov/benefit/ea/
Jacob Holmes also reported on attending the Older Americans event in Chilhowie, where he distributed informational materials about these programs.
Despite AEP highlighting recent rate decreases, the company has very recently requested a rate increase to help fund green energy initiatives and maintain environmental compliance at its coal and natural gas facilities. This would result in at least a 3% to 4% increase for customers. According to several recent statements, AEP is aiming for a carbon-free energy portfolio by 2050, in alignment with the Virginia Clean Economy Act passed in 2020 under Democratic Governor Ralph Northam. As part of this transition, AEP is seeking to recover $69 million in costs associated with renewable energy projects. Additionally, the company is requesting a separate increase to recoup $60.6 million spent on bringing fossil fuel plants into compliance with state and federal environmental regulations.
These recent requests appear to contradict the statements made by AEP’s representative, Jacob Holmes, during the presentation at our Board of Supervisors meeting.
On the issue of vegetation and trees in power lines, Holmes acknowledged that 90% of outages stem from trees outside of their legal right-of-way. While AEP’s Forestry Team monitors tree hazards, any major vegetation management plan must be SCC-approved. BOS members suggested AEP acquire additional right-of-way to better protect lines and prevent outages.
Supervisor Jason Parris emphasized the challenges of maintaining lines in rural, unpopulated areas, asked about burying lines where feasible. However, Holmes cited costs and regulatory obstacles. Parris also mentioned the concept of “smart lines” that can self-diagnose issues—but noted that these rely on cellular service, a basic communication that remains absent in most of the Rye Valley District he serves.
Dr. Dennis Carter, representing Smyth County Public Schools, spoke on the FY26 budget, highlighting that all schools are fully accredited and praising the Smyth Promise Program, which offers free college tuition to eligible students from the county who attend qualifying 2 year colleges Dr. Carter’s report on Smyth County School’s budget was very positive.
Recruitment and retention continue to be top priorities.
Smyth County Administrator Shawn Utt presented a look at the upcoming budget as follows:
- A $1 million revenue loss due to a mistake in the real estate equalization rate.
- State budget increases of 3%, which prompted an equivalent increase of county salaries.
- A $4 million shortfall in requests vs. revenue, leading to program cutbacks.
- A $10 million investment in public safety, although no cell coverage improvement in Sugar Grove was included.
- New Sheriff’s Office required quite a bit of this funding.
There’s an expected rollover of $7.8 million into the next year’s budget, but overall, the FY26 budget is smaller than the current year’s. Additionally, the county lost funding for four out of six School Resource Officer (SRO) grants.
To offset revenue shortfalls, several proposals are on the table:
- Correction to real estate tax rate from an advertised 53.5 cents to the proper 57.5 cents. 6 cents increase was recently advertised in a public notice however; the error was 4 cents.
- Water rate increases to generate sustainable revenue.
- Water/sewer connection fee increases, with the current $850 fee falling far below actual installation costs.
- Building permit fee increases to align with surrounding localities.
- EMS billing rate increases by 8.7%, aimed at capturing more Medicaid reimbursements.
The Board has scheduled public hearings for June 5 to gather citizen feedback on these items, including:
- Utility rates
- Connection and permit fees
- EMS billing
- Tax adjustments
- School operational funding
- The overall county budget
Supervisor Jason Parris noted, “We are paying for the sins of past boards to get stuff caught back up.”
Dr. Charles Wassum spoke during public comment time questioning whether taxpayers had received equivalent income increases, citing Virginia’s Constitution, Bill of Rights, Section 15 to highlight citizen protections.
During Board Comment time, Jason Parris, Rye Valley Supervisor stressed the county’s obligation to maintain essential services like schools, water, and emergency response. He also challenged VDOT, who were not in attendance at the meeting, urging them to tour the area and stating, “You’ve got to do better.”
Public hearings are scheduled for June 5 at 5 PM. Citizen attendance is encouraged.
