Martinsville Bulletin, Inc.
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| Hearings sought in this part of Virginia |
State Sen. Roscoe Reynolds (from left) and Dels. Ward Armstrong and Don Merricks speak at a press conference Tuesday where they criticized rate requests from Appalachian Power and urged the State Corporation Commission to hold hearings on the requests in this part of the state. (Bulletin photo by Mike Wray) |
Wednesday, June 3, 2009
By DEBBIE HALL - Bulletin Staff Writer
Local legislators were sharply critical Tuesday of a total of 13 percent in rate hikes proposed by Appalachian Power Co. (APCo), and they called on the company to withdraw its proposals.
State Sen. Roscoe Reynolds, D-Ridgeway, and Dels. Ward Armstrong, D-Collinsville, and Don Merricks, R-Pittsylvania County, made those comments at a news conference Tuesday in the Henry County Administration Building.
The three legislators, along with Del. Danny Marshall, R-Danville, are among many across the state who are asking the State Corporation Commission to hold hearings on the proposed hikes in Southwest and/or Southside Virginia, Reynolds said. The SCC rules on utility rate requests in the state.
“We’re all hearing substantial complaints” about the proposed rate increases, Reynolds said. He urged residents to lodge their complaints electronically or by mail with the SCC.
A majority of the complaints are from residents, Reynolds said. However, business owners told him the three increases Appalachian requested last year “will cost jobs,” and he is confident the situation has not changed.
If the proposed hikes are approved, the price per kilowatt-hour will rise from 2.16 cents to 3.381 cents, Armstrong said, and that “certainly has that potential” to hurt economic development efforts by dissuading companies and businesses that are considering locating here.
Merricks, a business owner, agreed, and said the proposed increases “will have a devastating effect on jobs and job creation.” Manufacturing businesses in particular will feel the pinch, but the increases will have “a major impact on all” businesses, he added.
The latest round of requested hikes are not general rate increases, Reynolds said.
One is related to the fuel adjustment clause. Appalachian has said it makes no profit on the fuel factor.
The other increase is an attempt to recoup $41 million the company spent for environmental equipment in 2008.
The requests were filed in May, just months after Appalachian implemented a 19.3 percent increase.
“In my business, I don’t have the luxury of going back and trying to recoup” the rising costs of doing business, Merricks said. “We’re all having to bite the bullet. ... This is definitely not the time to increase electric rates on businesses and individuals. Businesses are struggling to stay open, and residents are struggling to pay bills.”
“Unemployment is at an all-time high, and this request is simply unacceptable,” he said. “Everyone, including AEP (American Electric Power, parent company of Appalachian), must share in the difficulties we all are facing in this economic downturn.”
Considering the double-digit unemployment in all areas Armstrong represents, he said the rates requests are “ill-timed.” He also said he believes they should be withdrawn, and he supports holding at least one hearing in this part of the state.
In a prepared statement, Marshall said he “strongly objects to AEP’s proposed rate increases. ... At a time when families are out of work and having such financial difficulties, AEP’s desire to raise prices does not make sense and in fact is not needed.”
Marshall disputed one of Appalachian’s arguments that an increase is needed due to increased energy costs, because the cost of gas has decreased compared with what it was last year.
For instance, in 2008, gas prices were more than $4 per gallon, and diesel prices more than $4.75 per gallon, Marshall said. Now, they are an estimated $2.50 and $2.25 per gallon, respectively, he added.
There also has been a 40 percent decrease in the cost of coal in the last 12 months, and another “large natural gas company is lowering its prices by 16 percent effective now,” Marshall said.
If the increases are approved, Reynolds said they will put many residents “in an incredibly difficult decision” of giving up certain necessities so they can pay for electricity.
“It is important to let your voice be heard, and I encourage you to comment as soon as possible,” Merricks said, suggesting online comments be submitted at www.aepaction.org or www.aep.com/contact.
Online comments also can be made at www.scc.virginia.gov/case.
Written comments should reference case No. PUE 2009-00038 and be mailed to the State Corporation Commission, Document Control Center, P.O. Box 2118, Richmond, Va. 23218.
Comments must be submitted before the June 23 end of the public comment period, officials said.
A hearing is scheduled at 10 a.m. June 30 on the second floor of the SCC building in Richmond, Reynolds said. |
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