Bluefield Daily Telegraph, Bluefield, WV

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March 6, 2009

AEP proposes 43 percent rate increase in W.Va.

Staff and wire reports

CHARLESTON — American Electric Power’s West Virginia subsidiaries want a 43 percent rate increase for higher coal and purchased power prices.

Appalachian Power and Wheeling Power said Friday they’ll file for the increase with the state Public Service Commission on Monday. The utilities say they won’t profit from the $442 million in additional revenue because it represents costs being passed along to customers.

The companies say they’re recommending the increase be phased in, beginning with an 18.5 percent hike July 1. The monthly bill for a customer using 1,000 kilowatt hours a month would rise to $83.85, from $72.28.

Rates would rise another 14.5 percent in 2010 and 13.2 percent in 2011.

“I know they are going to spread the increase out over a three year period, but that is going to be hard on all of us,” Bluefield Mayor Linda Whalen said. “I don’t know how the city is going to afford to pay for that big of an increase.”

President Dana Waldo blames coal prices, which more than doubled last summer.

One local consumer advocate, Blaine Braithwaite, executive director of the South Bluefield Neighborhood Association, questioned how a rate increase could be justified. The companies may state that there has been a 43 percent increase in fuels such as natural gas and coal.

“The question is 43 percent since when?” Braithwaite said. “What pricing model are you using? Forty-three percent since last year, 5 years ago?”

Braithwaite said he wondered how policy makers can consider a cap in the trade of carbon emissions with average Americans in strained financial situations. People cannot keep seeing their utility bills increase.

“People are being laid off, wages have been stagnating for some time. How do they think people are going to be able to stay in their homes and be able to operate them?” he said. “I’m very confident that the South Bluefield Neighborhood Association will intervene in any rate increases to the public services commission and we will ask the hard questions to AEP. We’re not going to allow the utility industry to drive us from our homes.”





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