Sunday, January 31, 2010
Editorial: A political chill for a power company
Cold weather and hot politicians could spell trouble for Appalachian Power.
From the RoundTable blog
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Appalachian Power couldn't have chosen a worse time to implement a double-digit interim rate increase. The 12.5 percent raise comes when electric customers are confronting bills for a frigid winter snap that caused furnaces to run nonstop. And those staggering bills are arriving as lawmakers are in session.
Constituents demand action.
"We've got to do something," says Del. Terry Kilgore, chairman of the House Commerce and Labor Committee, which oversees utility legislation.
"People are upset and they're not going to take inaction very lightly," says Del. Ward Armstrong, the House minority leader.
What they shouldn't do is continue with proposals that would single out Appalachian Power to the exclusion of other electric companies. Appalachian is playing by the rules lawmakers set. If the rules are slanted in the company's favor and more consumer protection is needed, then, by all means, revisit them.
But any revisions must treat Appalachian the same as Dominion and others.
It's easy to appreciate the angst that Appalachian customers are feeling. Leaving aside the harsh weather, from December 2007 to December 2009, rate increases alone have driven bills up 60 percent for the average customer using about 1,000 kilowatt hours a month.
Until recently, Appalachian's customers enjoyed among the lowest rates in the nation. Rates were held artificially low by a number of factors, not the least of which was avoidance of mandatory environmental measures.
The company, hence its customers, are now paying the price for those delays.
Still, the State Corporation Commission is not deaf to their hardship pleas. Earlier this month, the commission noted as much in reducing from $43 million to $30 million the company's request for an environmental compliance surcharge. Action on the much larger increase is still pending, though customers are being billed in anticipation of the award.
Appalachian might appease both lawmaker and constituent by rescinding the interim raise at least until this cold winter passes.
