Customers complain APCO picked the wrong time to ask for an increase

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Roughly 35 people signed up to talk Wednesday night to the State Corporation Commission about Appalachian Power’s request to increase their fuel rate.
   
One by one everyone sounding off was sworn in.
   
Members of the General Assembly filled the front row, speaking on behalf of their constituents, while home owners take the podium on behalf of their own wallets.
   
Nathan Backus says he and his wife are like many around here on a fixed income.
“Where does it end,” Backus asked.  “That’s what I’d like to know.”
   
Many echoed his exact thoughts.
   
Just last year Appalachian Power increased the general rate and on the table now is a 9-13 percent fuel hike.
   
Most everyone who spoke to the panel said the same thing…this is horrible timing.
“You’re forcing senior citizens and laid off people to make a choice between basically basic life and death situations with electricity,” explained Delegate Danny Marshall, R-Henry County.

Many people I spoke to want to know why there’s a proposal for an increase when fuel and coal prices are significantly down from last year.
   
Delegate Don Merricks, R- Henry County, says it’s not fair for Appalachian Power to pass last year’s coal price hike off to the customers now, especially those in the area with the highest unemployment in the state.

“I’m a business person too.  I’ve seen my business costs escalate as well.  Unfortunately, I don’t get the benefit of going six months down the road and saying hey I need to recoup this I’m going to increase my contract,” said Merricks.

However, Appalachian Power spokesman, John Shepelwich, says the bill amount is up to customers…simply use less electricity.
“Indeed, they’ll see an increase if they use the same amount of electricity from month to month.  If they can cut that down some the impact will be a lot less,” explained Shepelwich.

Many of those who addressed the SCC told them since Appalachian Power is a monopoly it’s up to the SCC to keep their rates competitive.

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Reader Reactions

Flag Comment Posted by helmsdw on July 03, 2009 at 11:10 am

Lets stick to the facts.  I am only reporting the facts.  I moved from norther VA and the rates there are higher than they are here.  That was 5 years ago. If you don’t believe me I don’t care but the facts are the facts.  Obama said it and he is doing it so get used to it.  Use the internet and search for his interview on it.

Flag Comment Posted by ibedee on July 02, 2009 at 8:15 pm

I urge everyone to go to AEP.Com and look at your previous useage and compare the prices. My bill DOUBLED for the same amount of electricty used.

Flag Comment Posted by youngandfree on July 02, 2009 at 10:41 am

What you need to remember is Senators Warner and Webb need to know your displeasure with the proposed rate hikes.  You think 11 percent is bad, The Cap and Tax bill will increase your power bill much more than that.  Rick Boucher and Tom Perriello voted for the Cap and Tax in the House.  The SCC may be able to stop AEP in VA now, but long term, the Federal Cap and Tax will be far more devastating to the entire country.  If the State Delegates are willing to go to the SCC meeting to defend their districts, they and everyone else need to bombard Warner and Webb and Boucher and Perrielo for voting for the tax. 

This rate hike from AEP is because Kaine mandated AEP cut energy consumption by 2-5%.  Here is that story:
AP
Published: July 1, 2009

(AP) - In a filing with Virginia regulators, Appalachian Power predicts it can reduce energy consumption of 2 percent to 5 percent over five years.
  The filing Tuesday with the State Corporation Commission was required by new Virginia legislation, which seeks to slow the growth of energy demand.
  Appalachian Power said an outside consultant found that the company could realize savings of 2 percent of 2008 customer demand over five years, and approximately 5 percent of peak load.
  The power company said the costs to realize those savings would be about $80 million to $100 million.
  Appalachian Power is a subsidiary of American Electric Power and provides electricity to 1 million customers in Virginia, West Virginia and Tennessee.

This reduction in consumption is going to be by raising your rates and forcing you to turn your power off to lower your bill. Here is what AEP spokesman said:
However, Appalachian Power spokesman, John Shepelwich, says the bill amount is up to customers…simply use less electricity.
“Indeed, they’ll see an increase if they use the same amount of electricity from month to month.  If they can cut that down some the impact will be a lot less,” explained Shepelwich.

This is how Obama will “reduce energy consumption” is by taxing you so much that you won’t have a choice but to turn down your power.  The General Electric Smart Meters and Smart Grid Technology that Obama is oushing for will do exactly that.  It will measure when and how much power you use, and tax you at a higher rate during peak times of the day.  The ads say you can and track your power consumption with smart technology, but they will do it by force.  If your are charged a higher rate for power used during a set of peak hours, vs power used during off peak hours, you will use less during peak times to lower your bill. 

People need to open their eyes and wake up.  Take this fight about AEP from the SCC and take it to Warner, Webb, Boucher and Periello also.  If Congress passes and Obama signs Cap and Tax, AEP won’t be asking the SCC for a tax hike, they will by forced to raise prices in order to pay for the federal “clean energy” TAX.

Flag Comment Posted by melvin on July 02, 2009 at 8:46 am

I’ve said it before: supply and demand.  We have an overabundance of speedways in this region lighting their nighttime white trash rallies.  And yes, all the dope farmers with their grow lights.

Flag Comment Posted by tyeryar on July 02, 2009 at 7:55 am

why in the world do they want to make the rates go up. AEP needs to think about the older people that can not make it now. they have to choose between food or bills. and they pay bills and are left with little or no money to buy food ,or thier med’s. AEP you should feel bad . All you are worried about is money ,money ,money.

Flag Comment Posted by nokeguy@aol.com on July 02, 2009 at 7:43 am

What we need is more competition, another power company to come into the area to compete; Most people can not afford the electric bill now, and every year we go through the same thing with AEP.  It has nothing to do with Obama, helmsdw; I sense a lot of whining and placing of blame, along with ignorance…you must be a die-hard republican.

Flag Comment Posted by helmsdw on July 02, 2009 at 7:25 am

The rate increases are going to help pay for what the President of the US has required to meet the new clean air standards.  Get used to it.  He already said he would bankrupt all coal generation companies to get “Clean Energy Technology” and he will take the customers with it.  Clean air and green technology takes money and like all business (and government) the money will have to come from the customers.  Are you all going to go to Washington DC when President Obama requires Appalachian Power to add on an energy tax to you monthly bill??  Wake up and realize that you are getting what you asked for and maybe more.

Flag Comment Posted by photovirginia.com on July 01, 2009 at 11:06 pm

Wow, I wish I could have a $85 a month electricity bill. I have a small cottage and my electricity bill budget amount is $180 a month and goes up more each month.

Flag Comment Posted by Twiz on July 01, 2009 at 10:53 pm

I have to agree with the bad timing. I’m tired of baking in the heat, keeping my A/C turned down, and barely being able to scrape by with my empty refridgerator, so I can have the money for an $85 electric bill on a 2 bedroom apartment!

Flag Comment Posted by benhad on July 01, 2009 at 10:39 pm

AEP and Roanoke Gas is up already. Let’s have a black out week of not using electric and gas.  We should all have stoves installed in out homes.
In the past year…all taxes,all utilities, eating out tax/service,
cost of gas and cars up, food cost..up.
clothing up, duh
Annie get your guns we’re going back to hills and raise our own food, shoot our own food.(opposum)cut wood, ride horses.  This is what this country is coming to.  I can’t afford any of this on my retirement and working part-time money!  gee.. who cares.  greed and demands!

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