CHARLESTON, W.Va. -- Appalachian Power customers will see their electric bills increase by 12.1 percent this fall.
On Wednesday, the state Public Service Commission approved the power company's request to raise rates, but the increase wasn't nearly as much as expected.
In March, Appalachian Power initially requested a 43 percent rate hike over three years -- the largest proposed increase in state history.
The PSC ruled Wednesday that the power company was entitled to a $355 million increase, which will be phased in over four years. Appalachian Power must come back to the commission each year to determine the specific amount of that year's increase.
"This appears to be a reasonable outcome that deals with the cost of coal and our purchased power," said Appalachian Power spokeswoman Jeri Matheney. "We recognize the difficulty the PSC had in dealing with this request, and we're pleased they recognized the value of phasing in the increase over several years, rather than have customers face it all at once."
Residential customers using 600-kilowatt hours a month will see their monthly bills increase $5.70, from $47.40 to $53.10, according to the PSC.
The PSC's order allowing Appalachian Power to raise rates is effective starting today.
The increase will raise $124.7 million for the power company this year.
"Obviously, the commission was trying to balance all of the interests it this case, but some of these decisions are going to have impacts for years to come and make it harder to lower rates in the future," said Byron Harris, who heads the PSC's Consumer Advocate Division. "They didn't agree with all of our adjustments, so that's disappointing."
The utility said the rate increase is necessary to recover what it spends for coal -- and to purchase power and comply with more restrictive environmental regulations.
Tens of thousands of Appalachian Power customers signed petitions and sent letters to the Public Service Commission, opposing the utility's rate hike request.
CHARLESTON, W.Va. -- Appalachian Power customers will see their electric bills increase by 12.1 percent this fall.
On Wednesday, the state Public Service Commission approved the power company's request to raise rates, but the increase wasn't nearly as much as expected.
In March, Appalachian Power initially requested a 43 percent rate hike over three years -- the largest proposed increase in state history.
The PSC ruled Wednesday that the power company was entitled to a $355 million increase, which will be phased in over four years. Appalachian Power must come back to the commission each year to determine the specific amount of that year's increase.
"This appears to be a reasonable outcome that deals with the cost of coal and our purchased power," said Appalachian Power spokeswoman Jeri Matheney. "We recognize the difficulty the PSC had in dealing with this request, and we're pleased they recognized the value of phasing in the increase over several years, rather than have customers face it all at once."
Residential customers using 600-kilowatt hours a month will see their monthly bills increase $5.70, from $47.40 to $53.10, according to the PSC.
The PSC's order allowing Appalachian Power to raise rates is effective starting today.
The increase will raise $124.7 million for the power company this year.
"Obviously, the commission was trying to balance all of the interests it this case, but some of these decisions are going to have impacts for years to come and make it harder to lower rates in the future," said Byron Harris, who heads the PSC's Consumer Advocate Division. "They didn't agree with all of our adjustments, so that's disappointing."
The utility said the rate increase is necessary to recover what it spends for coal -- and to purchase power and comply with more restrictive environmental regulations.
Tens of thousands of Appalachian Power customers signed petitions and sent letters to the Public Service Commission, opposing the utility's rate hike request.
More than a dozen manufacturing plants, including Alcan Rolled Products in Ravenswood, also raised objections to Appalachian Power's rate hike proposal, saying higher electric costs would force them to lay off workers.
The PSC's 54-page order capped Appalachian Power's rate increase at 15 percent for industrial customers this year, Harris said.
On March 8, Appalachian Power and Wheeling Power, both subsidiaries of American Electric Power, filed a request with the PSC to raise rates 18.5 percent this year, 14.5 percent next year and 13.5 percent in 2011. The request would have raised $442 million.
AEP later lowered its request to $397.8 million.
In June, the PSC denied the company's request to raise rates 18.5 percent on a temporary basis, starting July 1.
Last year, the Public Service Commission approved an 11.35 percent increase for Appalachian Power. The power company asked for a 17 percent hike that year.
Appalachian Power provides electricity to 1 million customers in West Virginia, Virginia and Tennessee.
@tag:Reach Eric Eyre at erice...@wvgazette.com or 304-348-4869.
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U.S. DEPT. OF ENERGY
http://www1.eere.energy.gov/solar/myths.html#1
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