Thursday, January 28, 2010
Lawmakers turn up the heat on Appalachian
Area lawmakers say they are considering legislation to limit the utility's ability to raise rates.
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From today's paper
RICHMOND Southwest Virginia lawmakers shared their constituents' outrage over skyrocketing electric bills with Appalachian Power Co. executives on Wednesday -- and it was made clear legislation will be pursued to provide customers with relief if the company fails to act on its own.
Several legislators from both parties met for nearly an hour with Dana Waldo, Appalachian's president and chief operating officer, and other company officials in the office of House Majority Leader Morgan Griffith, R-Salem. The extraordinary gathering was arranged as lawmakers representing Appalachian's service area consider legislation that would limit the company's ability to increase rates.
"It was cordial but pointed," said House Minority Leader Ward Armstrong, D-Henry County.
"There was a good discussion, but we didn't get the answers we needed," Griffith said.
Legislators say they have been besieged with complaints about extreme increases in electric bills. The complaints have escalated in December and January, as the effects of greater power consumption and Appalachian's rate increases have packed a wallop with consumers.
Appalachian imposed an interim base rate increase in December of about 12.8 percent for the average residential customer. Fuel factor changes and environmental compliance costs also have contributed to increases in electric bills, company officials said.
Appalachian Vice President Dan Carson said regulatory changes and flattening fuel costs could help reduce rates in the future. And, he said, history suggests that the State Corporation Commission won't grant the entire base rate increase the company has requested.
"Our rates, in my opinion, will be less this time next year than they are today," Carson said.
But lawmakers have filed several bills that, through a variety of approaches, would limit Appalachian's ability to increase rates. Carson said most of those measures also "would limit our ability to recover our costs."
"It was explained to us in some cases what they were prepared to do and what legislation had been introduced," Carson said. "We just agreed to go back and think about what they told us some more."
But Carson said he had no doubt that lawmakers are taking the issue seriously.
"I hope they don't carry through, frankly, because I think if they do, it's not a good outcome," Carson said after Wednesday's meeting.
Del. Terry Kilgore, R-Scott County, said power company officials outlined some steps Appalachian is taking to assist consumers who are having difficulty paying their bills.
But Kilgore, the chairman of the House Commerce and Labor Committee, said lawmakers will push ahead with legislation to help Appalachian customers while continuing talks with the company.
"We're moving forward," Kilgore said. "We had some frank discussions and we're going to be looking out for the consumer."
Kilgore said the issue dominated a telephone town hall meeting held Tuesday night with Sen. William Wampler, R-Bristol. Kilgore said about 90 percent of the constituents who spoke during the meeting raised concerns about their electric bills.
