Saturday, September 15, 2012

Appalachian Power Co. seeks $33.3 million of our taxpaying dollars for “environmental costs”


It could be election year political maneuvering or a rare occasion of concern for Virginia’s utility “customers” by the Attorney General (AG), Ken Cuccinelli. On Wednesday, the AG claimed that his job is to make sure that Virginia’s utility customers pay no more than the law dictates.[1]

Cuccinelli’s public announcement came as a result of Appalachian Power Co.’s efforts to “recover” $33.3 million in disputed environmental costs. A decision by the Virginia Supreme Court is expected in early November.[2]

Despite the upcoming ruling, Virginia regulators already ruled that Appalachian Power was not entitled to recover the costs from customers.

Appalachian Power Co.’s efforts to extract $33.3 million from Virginia’s taxpayers also comes after the State Corporation Commission approved the utility company’s request in June to increase the amount it charges customers to recover fuel costs.[3] On average, the rate increase on the monthly bill of a residential customer using 1,000 kilowatts of electricity is close to $7.56.

Thus, Appalachian Power isn’t hurting financially in Virginia, but the company wants to add to its net revenues at the expense of Virginians regardless.

In Virginia, there needs to be a rebalancing in the relationship between utility and customer. At present, it is arguable that Virginia’s utilities usually receive the greatest political favor and the long end of the stick in financial disputes. But Virginia’s utilities are supposed to serve the power needs of Virginians, not the other way around.

There can be an environment where Virginia’s utilities are rewarded for their important services while leaving Virginians with a few extra disposable dollars to spend on things besides energy. That situation might arise when Virginia’s politicians learn that these utilities need us as much as we need them.

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