Power Rates, Regulation & Energy Costs

News out of Richmond today – Appalachian Power is prepared to suspend its most recent interim rate increase. After “concerns” arose about people facing higher electric bills, Virginia lawmakers began working to prevent the rate increase, causing Appalachian Power to suspend its request.

Appalachian Power Vice President Dan Carson says the utility is prepared to suspend an interim rate increase that took effect in December.

Carson made that statement Wednesday afternoon at a legislative hearing in Richmond.

Concern over rising electricity bills prompted lawmakers to introduce a number of measures directed at Appalachian Power.

Carson says the action would take effect after the governor signs proposed legislation.

He says the action would provide relief in a matter of days rather than weeks or months.

Martinsville Delegate Ward Armstrong says the proposal is a “good first step, but just a good first step.”

I want to do some more research on this, including trying to get in touch with Appalachian Power, but my early inclination is to say that the power company is probably justified in its rate increase. I watched the following video on APCO’s Youtube Channel and heard something that immediately made it all click for me.

“Although we realize it’s a bad time to raise rates due to the economy, the cost of generating electricty has gone up, we’ve had to meet more federal guidelines for emissions on our power plants. Even though it’s a bad time for the economy, it’s something that we could not prevent.” (my emphasis)

Obviously – what intrigues me here are the federal emissions guidelines. I want to look more into this and I’ll come back to it soon. I do, however, want to add something on the subject of power companies.

I understand people are having trouble paying their bills. My parents and plenty of people I know are among the many who have to ask themselves every month, how am I going to make this work?

I also understand though, Appalachian Power is a business. They have costs and they deserve to make a profit. Part of your state lawmaker’s job is to decide how much profit they should make – or at least, how much they should charge you. Next time Appalachian Power asks for a rate hike, don’t get upset at them – call your state legislator. And when you go to vote in November, ask yourself who Appalachian Power is sending money to – I’ll give you a hint, his name is Ward Armstrong.