Appalachian Power and Wheeling Power customers are going to see their rates increase Tuesday, but not nearly as much as anticipated.
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.
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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I wonder how much of this increase is really going towards the new transmission line exporting power to other states?