APCO wants to raise rates 19%
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Appalachian Power asks for 3rd rate hike
APCO claims if approved, the rate hike would equal an increase of 55 cents per day for the average customer
“Today APCO filed rate increase requests with the Virginia SCC,” said Dana Waldo, President of Appalachian Power.
And it’s not just any old rate increase. Try a 19% hike. Waldo compared the increase to the cost of a Happy Meal saying rates would go up to “$3.61 a day for electricity, an increase of about 55 cents a day.”
That’s the sales pitch. In reality, this hike would raise your bill $15 a month, $170 a year. And it doesn’t stop there. APCO already has two other rate increases before the SCC and if all three increases are approved, the average monthly bill will go up from $92 a month for 1000 kilowatt hours to $122. The quick math: that’s a $30 a month increase or $360 a year.
WARREN: “IS 19% REASONABLE?”
WALDO: “19% is the actual cost of what it will take for us to provide service.”
WARREN: “I THINK A LOT OF PEOPLE ARE GOING TO LISTEN TO THIS AND SAY ARE YOU KIDDING ME, YET AGAIN ANOTHER RATE INCREASE. WHAT WOULD YOU SAY TO THEM?”
WALDO: “I understand the issue that some customers are going to have trouble paying not only their electric bill but also the food bill, the mortgage. We understand the difficult times. That’s why we have made the commitment to the keep the costs as low as possible.” He went on to say, “What we ask our customers to do is be conservative in how you use electricity, use their electricity wisely and contact us early if you need help.”
WARREN: “YOU SAY USE ELECTRICITY WISELY, BUT WHEN YOU KEEP INCREASING THE RATE, YOU’RE NOT GOING TO END UP SAVING MONEY ARE YOU?”
WALDO: “Our rates on an inflation adjusted basis are going to be less today than they were in 1983. So we’re keeping up with the rate of inflation. We’re doing even better.”
WARREN: “OVER THE LONG HAUL YOUR RATES ARE BEHIND INFLATION, BUT OVER THE SHORT HAUL THEY ARE GREATLY ENLARGED COMPARED TO INFLATION. WE DON’T SEE 19% INCREASES IN EVERYTHING ELSE.”
WALDO: “If you take a very short time line.”
WARREN: “WELL WHAT PEOPLE ARE WORRIED ABOUT RIGHT NOW BECAUSE THEY ARE TRYING TO PAY THEIR BILLS IN A DOWN ECONOMY.”
WALDO: “And that’s why we are saying we are going to try and provide as much assistance to those costumers as we can.”
Why does APCO need the rate hikes? Waldo says it will cover the increased cost to produce electricity and implement environmental improvements that are federally mandated.
He notes they are invested a million dollars in programs to help people pay their bills.
And finally, Waldo says the company is working to reduce costs by freezing salaries, limiting travel, and giving out no bonuses.
APCO’s profit for last year was 2%.
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Reader Reactions
First and foremost ,2 increases on the table in front of the SCC,and another one is totally ridiculous.Did upper management not have the hindsight to prepare for the city,county or suburbs to grow,and prepare.Did they not have the sense to look and use alternative power.Now when everything is growing,population included,there looking for the tax payers to bail them out.Guess they were out playing golf or whatever they do.
One wonders if any of the big shots have aging parents,who live from month to month on a fixed income.How about the disabled.Are they to come to their rescue.I think not.
As for the retired workers thats all you can do is whine.You were payed good money. for your job and you knew the consiquences.Besides we the taxpayers payed your salary to do a job.no situlations on the weather conditions.and pay for your service,which I believe means inclement weather.Seems cops.firefighters.emts and the list goes on.make way less than you did,and you don’t hear them complaining.The bottom line is , the population is growing through out the world,and the people who head APCO should have spent less time at the country club or the golf course lining their pockets ,and should have spent more time planning for the growing world and the demand for electricity going up ,instead of trying to milk their customers for more money to make up for their underplanning.Its not like the world and population exploded over night.
Why all the outrage toward APCO. When your President’s cap & trade tax kicks in, you will consider that 19% increase to be very small compared to the “CHANGE” you will see on your electric bill then.
Get ready, cause you ain’t seen nothin’ yet!
Has APCO thought about people that are on fixed incomes?? kids that moms are trying to take care of, I don,t think so they could care less, I,ve been a single mom so I no what its all about, we don,t need this nor do they all it is is another big rip off from all the people, think people have just a little HEART BEFORE YOU KEEP LINING YOUR POCKETS APCO,,,,,
Unbelievable, last count I had our rates have been increased 14 times! What is this the 15th, I don’t know I’ve lost count. It makes me sick. I’ve no idea how to keep my family warm this winter as the rates are now the price of rent. I guess heat is a luxury, we will all be huddled around candles trying to keep warm. Reports during the winter of elderly people’s homes burning while they huddle next to small space heaters for inadequate heating to save money. Funny how the news does not report negatively on this subject as the weather is brought to you by APCO. It’s hard to even figure out what is going while the FCC does nothing. Last I heard our rates have gone up a total of 40 percent! We need to rise up and picket this greedy company. We need to be heard as the news will do nothing, we need our own voice! It’s time to fight these outrageous increases!!!!!!!!
I think AEP needs a Middle Class Manger. Last I check buying new trucks to drive around in every other year was not CUTTING back. You want me to cut off my lights so your company can buy NEW items to keep up appearance. I think we need to do a little more looking into AEP’s expenses for the past couple years then we’ll see the real reason for the rate increase
“To all those who are complaining about rate hikes, if you only knew what it took to keep your power on as well as restore it in times of bad weather (ie, wind storm of 08)I believe most everyone would stop complaning (I understand some will complain no matter what). As a retired utiliy employee I understand what these hard working men and women go through each and every day, not to count during periods of extreme conditions. And to vt03ee: Dominion actually recently added a subsidy to each customers bill to recover cost for transmision building, in addition, their customers already pay MUCH more than APCO’s do. As a matter of fact, even if all 3 rate requests are approved, we will still be among the lowest paying electric customers in the country. So next time the power goes out in an ice storm at 2 o’clock in the morning just think about the crews working through the night and the entire next day in these adverse conditions to restore your power as quickly and safely as possible. Before everyone complains so quickly, I believe we need to learn to appreciate what goes into what we have.“
I almost shed a tear. Almost…
I have watched my AEP Bill go up, even when I do not leave my lights on. For the first person that left a comment on this. There is something I want to say to you. You said you were retired and that we did not understand that the weather conditions the AEP had to work under, and so on…MY QUESTION TO YOU IS, FOR SOMEONE WHO MADE 30 TO 40 DOLLARS AN HOUR OR MORE, IT IS EASY TO SIT BACK AND SAY OK, THIS NEEDS TO HAPPEN…..BUT YOU NEED TO LOOK AT THE POLICE OFFICERS, EMS WORKERS, AND FIREFIGHTER, WE WORK FOR A HOLE LOT LESS THAN THAT AND SOME OF US VOLUNTEER OUR TIME, THAT MEANS WE DON’T GET PAID…AND THE LAST TIME I CHECKED WE DID NOT GET TO PICK THE WEATHER WE WORK IN EITHER, SOMETIME WE MIGHT BE ON A WRECK FOR HOURS, WHAT ABOUT US…..SO BEFORE YOU SAY IT IS OK FOR THIS TO HAPPEN YOU NEED TO THINK ABOUT THE ONES WHO WORK RIGHT OUT THERE WERE YOU USE TO AND WE MAKE ALOT LESS MONEY THAN YOU DO OR DID.
To all those who are complaining about rate hikes, if you only knew what it took to keep your power on as well as restore it in times of bad weather (ie, wind storm of 08)I believe most everyone would stop complaning (I understand some will complain no matter what). As a retired utiliy employee I understand what these hard working men and women go through each and every day, not to count during periods of extreme conditions. And to vt03ee: Dominion actually recently added a subsidy to each customers bill to recover cost for transmision building, in addition, their customers already pay MUCH more than APCO’s do. As a matter of fact, even if all 3 rate requests are approved, we will still be among the lowest paying electric customers in the country. So next time the power goes out in an ice storm at 2 o’clock in the morning just think about the crews working through the night and the entire next day in these adverse conditions to restore your power as quickly and safely as possible. Before everyone complains so quickly, I believe we need to learn to appreciate what goes into what we have.
Is it $3.61 a day or $0.55 a day? Get it straight.
APCO’s profit was 2%...mmm 2% of what total?
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