Thursday, March 11, 2010
Governor meets with Appalachian's top brass
He raised concerns about Virginia's electric rates being higher than those in two adjoining states.
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RICHMOND -- Gov. Bob McDonnell met privately with executives of Appalachian Power Co. and its parent company this week and advised them to hold community meetings in Southwest and Southside Virginia to explain the company's rate increases to customers.
The recommendation was part of what the governor described as "a very candid discussion" with Appalachian executives during a private meeting Tuesday afternoon in Richmond. The company has been under fire from some legislators over rate increases and dramatic wintertime spikes in electric bills for many of its Virginia customers.
McDonnell last month signed emergency legislation suspending an interim rate charge that Appalachian began collecting in December. That measure will provide at least short-term relief for Appalachian customers, but it's unclear what additional steps McDonnell's administration or Appalachian might propose.
"We discussed a couple of things that might be done going forward to either slow or stop rate increases, and they [Appalachian executives] agreed they would look at a few things internally going forward to make that happen," McDonnell said in a telephone interview Wednesday.
McDonnell said Appalachian's Virginia rates, long among the nation's lowest, remain competitive. But he said he raised concerns about the rates being higher than Appalachian's West Virginia rates and those of Duke Energy in North Carolina.
The meeting was attended by Michael Morris, president and chief executive of American Electric Power; Venita McCellon-Allen, executive vice president of AEP Utilities East; Appalachian President and Chief Operating Officer Dana Waldo; and Vice President Dan Carson.
Appalachian spokesman Todd Burns declined to discuss specifics of the meeting, but said company officials assured McDonnell "that we will work diligently to explore ways to avoid the frequency and size of recent rate increases."
McDonnell said he urged Appalachian officials to hold public meetings to explain the factors behind rate increases the company has imposed over the past three years.
"I have strongly suggested to the Apco leaders that they have some town hall meetings down there and talk to the citizens about how they've gotten to this point, what they think they can do internally to do something about it," McDonnell said. "I think that could go a long way toward helping the citizens understand the regulatory and rate-making process and what Apco's doing to try to be a good corporate partner."
Del. Ward Armstrong, D-Henry County, who has pushed for more aggressive steps to rein in rate increases, said town hall meetings would provide little comfort for stressed customers.
"I don't care how nicely you say, 'We're doubling your electric bill,' I don't think that's going to be well received in Southwest Virginia," said Armstrong, who remains disappointed with the legislature's handling of the issue.
McDonnell met last month with regional manufacturing executives who voiced fears about the impact that Appalachian's rate increases are having on their companies. McDonnell said he also appreciates the pressures that rising electric bills are having on homeowners, "particularly in areas of the state where the unemployment rate is chronically high."
The State Corporation Commission will hold a hearing on Appalachian's pending rate request Tuesday in Richmond.
