Power company seeking to hike rates

By JIM TALBERT\Staff
RICHMOND – Like just about everything else, electricity could cost more in the near future.
Appalachian Power has petitioned the State Corporation Commission for a 23.9 percent rate hike. If approved the increase would mean a residential customer using 1,000 kilowatt hours would see their bill rise from $71.48 to $88.01.
A news release from Appalachian said the company was in a precarious financial situation in Virginia and hoped the SCC’s response would be positive and comparably speedy. Appalachian said it hopes the SCC will make a decision within 150 days so that it can avoid a decision on implementing the rate hike on an interim basis.
The company imposed a 2007 interim rate hike and had to refund $126 million to customers after the SCC denied the request.  A spokesperson for the SCC said a typical review of a rate increase would take nine to 23 months and allow all interested parties the chance to fully litigate the request.
The company is also seeking to recover $17.6 million in costs it uncured while addressing environmental concerns dealing with coal fired plants and other regulatory issues. They have asked for that surcharge effective Jan. 1 2009 and say it would increase bills an average of less than two percent.
The SCC has scheduled a public hearing on that increase for Sept. 17 and for Oct. 29 on the 23.9 percent increase in the base rate. The SCC turned down a request for a rate hike last week.
That request was to allow the company to assess its Virginia customers a portion of the cost of a new coal fired plant in West Virginia. The SCC said the plant’s estimated cost of $2.23 billion dated back to 2006 and wasn’t credible.