Martinsville Bulletin, Inc.
P. O. Box 3711
204 Broad Street
Martinsville, Virginia 24115
276-638-8801
Toll Free: 800-234-6575
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Wednesday, July 1, 2009
By BULLETIN STAFF REPORTS -
Two local legislators voiced opposition to rate hikes proposed by Appalachian Power Co. during a hearing Tuesday before the State Corporation Commission.
State Sen. Roscoe Reynolds, D-Ridgeway, and Del. Don Merricks, R-Pittsylvania County, urged commission members not to approve the increases, which together would raise electricity rates by 13 percent.
The proposed hikes are not general rate increases. One is related to the fuel adjustment clause. Appalachian has said it makes no profit on the fuel factor, and it is trying to recover its fuel costs.
APCo’s other proposed rate hike is an attempt to recoup $41 million in equipment purchases it made in 2008.
The hearing Tuesday focused only on the fuel adjustment clause, Reynolds said. However, he said he spoke against all proposed rate increases.
Consumer reaction to the hike proposal has been “alarm and anger,” Reynolds told the SCC, and he said he “begged” the commission to scrutinize the request before granting any increase.
Reynolds said he referred to letters of opposition from the Henry and Floyd county boards of supervisors and from Carl Ayers, director of the Floyd County Department of Social Services, who said rate increases would adversely affect his department’s clients.
Reynolds also read comments by Democratic gubernatorial nominee state Sen. Creigh Deeds that rate increases would adversely affect small businesses and families.
Both Reynolds and Merricks mentioned the impact the recession has had on their constituents.
“No one could foresee the difficult economic times we have seen and are still seeing,” Merricks said, according to a copy of his remarks. “I cannot in good conscience sit idely by and not comment on the proposed increase APCo is requesting.”
Things are worse now than they were last year, both Reynolds and Merricks told the commission. They pointed to the area’s increasing unemployment rates.
Merricks, a small business owner, said even a slight increase would hurt small businesses and manufacturing firms. A rate increase also would “have a tremendous negative impact on job creation and job retainage in our region,” he said.
Merricks urged commission members to deny the request or, if not that, to hold it to a minimum.
A second public hearing will be held at 6 p.m. today at Wytheville Community College in Wytheville. Both Reynolds and Merricks urged members of the public to attend the hearing and voice their opposition to the increases.
Del. Danny Marshall, R-Danville, said Tuesday that he will urge the commission to decrease rates when he speaks at today’s hearing. The prices of coal and natural gas have declined during the past year, Marshall said, so APCo should not need to raise rates to cover utility costs.
“It just doesn’t make any sense at all,” he said. “I think the rate should go down. It shouldn’t go up one penny.”
Laid-off workers and senior citizens cannot afford to pay more for an essential such as electric power, Marshall said.
House Minority Leader Del. Ward Armstrong, D-Collinsville, also is scheduled to speak at today’s hearing.
If both new requests are approved, the per kilowatt-hour cost of electricity will increase from 2.16 cents to 3.381 cents.
APCo serves 31 counties, including Henry and Patrick. |
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