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Wednesday, November 09, 2005

AEP Plans to Shock Consumers Twice.

News Channel 10 is reporting;

"The company says the increase is necessary to meet the rise in the projected costs of fuel to generate electricity in 2006. Appalachian is seeking to raise its current fuel factor from 1.42 cents per kilowatt hour (kWh) to 1.785¢/kWh. The average residential customer using 1,000 kWh in a month would see an increase of $3.65, or 6.2 percent on a monthly bill."

This increase is planned to take place in January of 2006. But then just a quick month later, Appalachian Power is requesting a customer surcharge on the base rate.

Projected income for AEP from this one two punch is $57.7 million for the fuel factor and $13.5 million for the change in the base rate.

The State Corporation Commission will referee this match between the consumer and and AEP. We only hope that the consumer is not down for the count.

4 Comments:

At 5:05 PM, Anonymous Anonymous said...

But if you talk to the folks at SML, poor AEP is cash strapped and couldn't possibly help finance the locals’ pet projects. Therefore, the locals want the visitors of the lake to pay for it (while the locals have control of the funds).

 
At 10:43 PM, Blogger B O B said...

Thank you for your comment. It is sometimes remarkable, that some of the companies and for that matter government agencies say they are operating on bare bones can suddenly come up with money.

 
At 9:28 AM, Anonymous Gravy Beard said...

AEP needs to stop paying employees overtime to sit in their trucks eating and sleeping...they could save a lot there. Anytime the power goes off and you are wondering what is taking so long to get it back on you can drive down the road and find these AEP workers sitting around doing nothing. One of them told me one time that if they were going to be called in to do over time they were going to get all they could out of it.

G B

 
At 10:28 AM, Anonymous Anonymous said...

AEP does need the extra funds, but not so much for fuel costs, but rather for environmental costs. Green parties have fought for stricter air regulations and now they are getting it. But it will cost the people. A few billion dollars are being spent to make AEP's stacks cleaner. Remember, AEP is a business that is in business to make a profit. So in order to spend that kind of money, you better make sure you get a return. Thus, higher rates for the consumer. Still cheaper than natural gas....

 

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