Lights out on APCO hike

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Gov. Bob McDonnell is joined by lawmakers from Southwest Virginia and Southside Virginia in signing HB 1308 into law Wednesday morning. The legislation suspends the 12.5 percent interim rate Appalachian Power began charging customers in Virginia last December. Contributed photo

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February 25, 2010

Va. governor signs bill to end rate increase

By CHARLES OWENS Bluefield Daily Telegraph The Bluefield Daily Telegraph Thu Feb 25, 2010, 05:00 AM EST

RICHMOND, Va. — Gov. Bob McDonnell has pulled the plug on Appalachian Power’s interim rate increase.

With members of the Southwest Virginia delegation at his side, McDonnell signed HB 1308 into law Wednesday morning. The legislation was co-patroned by Sen. Phillip Puckett, D-Tazewell, and Delegate Bill Carrico, R-Galax. The legislation suspends the 12.5 percent interim rate the company began charging customers last December.

The bill, signed into law on an emergency basis, takes effect immediately.

“I am glad that we are now going to see immediate relief to the electric rate payers of Southwest Virginia with the suspension of the interim rate increase that culminated by today’s action,” Puckett said. “Many of the citizens of Southwest Virginia are struggling financially and this is the first step to address skyrocketing electric bills by the members of the General Assembly from Southwest and Southside Virginia in a truly bipartisan effort.”

“The hard work and determination of the Southwest delegation to urge APCO to understand that the citizens of Southwest Virginia should not have to choose between paying their power bill and putting food on the table is greatly appreciated by not only me but also the citizens all across Southwest Virginia,” Delegate Will Morefield, R-Tazewell, added. “As I have said before, this is only a small step in the right direction. I believe that there are many other measures that should be looked at to provide our citizens with great utilities at an affordable price.”

Dale Dye, a legislative aid for Morefield, said it is important for citizens of Southwest Virginia to continue sending letters and e-mails to the Virginia State Corporation Commission as the company’s request for the 12.5 percent base rate increase will still be considered by the SCC later this year.

“I want to commend Gov. McDonnell today for his swift action and signing the emergency AEP interim rate relief legislation recently passed by the Virginia General Assembly,” Delegate Anne B. Crockett-Stark, R-Wythe, added. “I want to thank the bi-partisan coalition of delegates and senators from throughout Southwest and Southside who worked together to pass relief legislation for our citizens. I, also, want to thank every person who contacted our office to voice their opinion. It is your efforts that make our Commonwealth and local communities a better place to live.”

The new rate reduces the price for 1,000 kilowatt-hours of electricity from $117.86 to $105.18 for an average residential customer, according to Appalachian Power.

“We recognize that many customers are concerned about winter heating bills,” Appalachian Power President and COO Dana Waldo said in a press release issued by the company. “We believe this rate reduction along with our recently expanded payment options will help them.”

McDonnell said lawmakers trust the SCC will take the current economic circumstances into account when it renders a decision later this year on Appalachian Power’s 12 percent base rate increase case.

“This bipartisan legislation provides badly needed, immediate relief to the customers of Appalachian Power,” McDonnell said in a statement issued by his office. “I want to thank APCO for being a partner with the legislature to find a short term solution to the immediate problem, while we examine the overall issues associated with the recent steed rate increases more carefully. Three years ago, while I was attorney general, we worked with the legislature to protect all of Virginia’s citizens from skyrocketing energy costs by re-regulating electricity. In that legislation we balanced the need to keep electricity reasonably priced today while at the same time promoting investment in expanded generation infrastructure in order to assure reasonably priced reliable power for the future. I am glad that the General Assembly found a way to provide urgently needed relief without making wholesale changes to the 2007 law that has yet to be fully implemented. I want to thank Senator Phil Puckett and Delegate Bill Carrico for their leadership on this issue, and all the members of the General Assembly who worked together to get this important legislation passed.”

– Contact Charles Owens at cowens@bdtonline.com