Thursday, September 04, 2008
Proposed electrical rate hikes protested
The state has received 2,000 comments on three Appalachian Power requests.
Related
Letter to Appalachian Power
State regulators preparing to open hearings this month have received 2,000 comments on a proposal to raise electrical rates in Western Virginia.
Virginia State Corporation Commission spokesman Ken Schrad said most, if not all, are expressions of protest of Appalachian Power Co.'s plans.
The SCC is gathering written reaction to proposed increases of more than 30 percent in electrical bills, arising from three rate-hike filings. The agency will begin hearings soon with one increase already in effect on an interim basis. More hearings are set for later in the fall.
The proposals, if approved, could mean that by early next year, the typical electrical bill for a modest home could rise from about $70 to $100 a month.
"I am on disability and like many other people cannot pay this increase. I'm afraid my power will be turned off," Carol Mink of Abingdon wrote.
Appalachian, which has historically charged Virginians some of the lowest electricity rates in the United States, said it needs the increases to cover higher overhead and improve the company's financial performance.
The company said it is paying substantially more for coal used to make electricity and has installed anti-pollution equipment to protect the environment.
But critics of the measures abound, calling to mind a previous proposal from the company in the winter of 2006. After higher charges began on an interim basis, state regulators told the company to roll the increase back and pay refunds.
The latest round of proposals looks like this:
Regulators will hold a Sept. 17 hearing on a proposed Jan. 1 increase in an environmental surcharge. It would raise the average household bill 2 percent effective Jan. 1.
In addition, Appalachian chose to implement a fuel surcharge increase on an interim basis Monday; a hearing is scheduled Sept. 23. It raises the average residential bill 11 percent.
The company also awaits an Oct. 29 hearing on a so-called base rate increase that would elevate the average household bill almost 24 percent. The company has not decided whether to collect that on an interim basis or wait for a decision.
Roanoke lawyer John Fishwick tried to turn up the heat Wednesday by charging in a letter that Appalachian and its parent company, American Electric Power, are trying to make customers pay for legal losses spawned by allegedly ineffective leadership at the company.
"The increases requested by APCo are unjust and unreasonable," according to a copy of the letter, which Fishwick said was mailed Monday on behalf of his clients Jay Ray of Franklin County and Edward Love of Roanoke County.
Fishwick said the men came to his firm as Virginia residential utility customers and consumers asking for help fighting the proposed increases.
John Shepelwich, spokesman for Appalachian, denied Fishwick's contention. He said the requests are reasonable and warrant approval.
Schrad noted that some parties who have placed comments said a modest increase might be warranted, but not as much as the company seeks.
Lichtenstein Fishwick & Johnson PLC, of which Fishwick is a partner, has a history of high-profile cases. It represented Virginia citizens in cases against the Virginia Lottery and the state's "abusive driver" fees. The firm has represented former Roanoke Councilman Alfred Dowe, one-time Roanoke pain doctor Cecil Knox and Richard Burrow, the former head of the National D-Day Memorial Foundation.
The firm settled a class action employment lawsuit against Bank of America in 2006 in which it represented 24 employees suing for unpaid overtime.





