Allegheny Asks for 18 Percent Rate Hike (Charleston Gazette)
From the Sept. 2 edition of the Charleston Gazette:
By Kellen Henry
Allegheny Power requested an 18 percent rate increase on Friday, which would be the largest electricity rate increase in the state’s history if approved, according to the state Public Service Commission. (Emphasis added)
“We’re still in shock because the increase is so large, but the cost of coal has gone up dramatically in the past year,” said Byron Harris of the PSC’s consumer advocate division.
The company wants to increase residential rates by 18 percent and some commercial and industrial rates by 20 percent, Harris said. The power company, part of Allegheny Energy Inc., serves about 490,000 customers in West Virginia, many in the state’s north-central region.
The consumer advocate division had not completed its review of the power company’s proposal on Friday, but said the major culprit is rising fuel costs.
With an 18 percent increase, customers who use an average of 1,000 kilowatts of power would go from paying about $70.50 to more than $83. (Emphasis added)
The proposed hike seeks to raise about $173 million to cover expenses, beating out the 17 percent request made in March by Appalachian Power and Wheeling Power to raise $156 million. (Emphasis added)
The PSC approved an 11.35 percent increase for those companies, which began affecting Charleston customers in July. The commission will review Allegheny Power’s increase proposal and decide whether to approve the rate increase in full or in part before Jan. 1.
“I certainly hope that this full amount also does not go into effect,” Harris said.
The last rate shift the PSC approved for Allegheny Energy was a rate decrease in May of 2007, saving consumers about $1 on their monthly bills. (Emphasis added)
With this possible rate increase on the heels of water and natural gas price hikes, consumer advocates encourage people to replace inefficient appliances try to cut down energy consumption.