June 27, 2008
Power rates going up July 1
Advertiser

Appalachian Power and Wheeling Power customers are going to see their rates increase Tuesday, but not nearly as much as anticipated.

The West Virginia Public Service Commission approved an 11.35 percent increase for the power companies on Thursday. This will net the utilities $106 million.

Residential customers using 1,000 kilowatt-hours a month would see their monthly bills increase $7.33, from $64.55 to $72.28.

In March, the two power companies, both subsidies of American Electric Power, asked for a 17 percent increase. That increase would have raised about $156 million - more than any utility request ever made of the PSC.

If that request had been approved, an average residential customer would have seen their bills increase $9.39 a month.

In late May, the utility, the PSC staff, the PSC's Consumer Advocate Division and other interveners reached the 11.35 percent agreement.

Since 2006, the PSC has approved $235.5 million in rate increases for Appalachian Power and Wheeling Power.

In July 2006, rates increased 5.5 percent, raising a bill an average of $3.70 a month. In July 2007, rates increased 10 percent, raising a customer's bill $5.68 a month.

The reason for the successive rate increases is linked to a 2006 PSC order, which allows the power companies to ask for rate increases to recoup what they spend for fuel and purchased power.

The requests must be filed by March 1, with changes effective July 1.

"Rate increases are never easy. However, these companies have a strong track record of providing quality electric service at some of the lowest rates in the nation," PSC chairman Michael Albert said in a news release. "Utility companies are subject to the same costs and escalating prices as consumers."

Of the $106 million, the majority - $88.3 million - is for increased fuel costs, primarily coal and purchased power. About $3.8 million will go for reliability improvements, and the remaining $13.9 will help fund the $1.4 billion scrubber projects at the utility's Mountaineer and John Amos plants.

Appalachian Power provides electricity to 1 million customers in Virginia, West Virginia and Tennessee.

Reach Sarah K. Winn at sarah kw...@wvgazette.com">kw...@wvgazette.com or 348-5156.

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Posted By: In Walton (7:23pm 06-27-2008)
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No wonder why my electric bll never goes down despite switching to energy star appliance, turning every light off, hanging my clothes to dry and not using the AC. AEP gets a rate increase every year and I am paying more for using less electricity.

I wonder how much of this increase is really going towards the new transmission line exporting power to other states?

Posted By: mike jones (6:56pm 06-27-2008)
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I wonder what the cost of hydro electric is . i mean whats the overhead as far as fuel costs. Nothing unless the power co has to pay fo the flow of river water. I mean does the state send aep a bill for water that flows.

Posted By: mike jones (6:52pm 06-27-2008)
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I am a state employee. I wonder, if getting that kind of money is that easy, Then whay didnt I think of asking the good ole psc for a raise a long time ago.

Posted By: former wv resident (4:20pm 06-27-2008)
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keep in mind people that appalachian power is part of american electric power (which does have hydro plants, nuclear plants, wind plants, gas-fired plants and coal plants) has currently and historically had low rates in wv.. count yourselves lucky, as a resident of az now, my usage of 2,000 kwh bill went from $115 to $190. i'd love to have my old rates back, even with the new rate increase by apco. it would save me $75 a month at least!

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