Virginia lawmakers propose plan to curb rising Appalachian Power rates

LEBANON, Va. (WCYB) — According to Virginia lawmakers, electric rates continue to rise for Appalachian Power customers.

Lawmakers said a new proposed plan would strengthen oversight of the utility, while Appalachian Power said lawmakers’ claims about rates and profits are misleading.

News Five’s Natalea Hillen breaks down how both sides are responding.

Lawmakers said high electric rates are hitting Southwest Virginia hard, especially families and small businesses.

News Five’s Natalea Hillen spoke with a local business owner in Lebanon and a Russell County resident about the financial pressure caused by rising Appalachian Power bills.

There’s a lot of people in SWVA on fixed incomes, said Russell County resident, Wanda Burke.

Resident Wanda Burke in Russell County said she pays a $300 a month power bill for her two-bedroom home, which went up from $160, 3 years ago.

It’s sad that you’re having to decide, are you going to stay warm? Are you going to eat? said Burke.

Southwest Virginia lawmakers said customers served by Appalachian Power are paying too much, blaming the state’s monopoly utility system for rising bills.

The reality is these people are paying way too much on APCo bills, said Virginia Delegate, Sam Rasoul.

On Tuesday, lawmakers met in Richmond to announce a bi-partisan energy affordability package. They said it will strengthen oversight and rein in costs passed on to customers.

Number one, it says hey, if we are maximizing the profit you’ve got to calculate the profit the right way. Number two, it strengthens the State Corporation Commission’s ability to analyze how costs are being covered, said Rasoul.

Delegate Sam Rasoul said the concern is how utilities recover costs, especially when it comes to infrastructure and power generation.

What happens with utilities is they make money by owning very expensive stuff and buying electricity from their own affiliates. What we want to do is make sure that accounting makes sense for Virginia, Rasoul said.

Rasoul points to long-term increases in electric bills across Appalachian Power’s service territory.

Since 2007, is that our electric bills have increased by 159% in APCo territory, that’s 3 times the level of inflation, said Rasoul.

But Appalachian Power disputes those claims.

It’s not a Southwest Virginia issue. It’s not even a Virginia issue. It’s a national issue. Energy costs have gone up everywhere and what we want is the opportunity to work together to find the best solutions for customers, said Appalachian Power spokesperson, George Porter.

Appalachian Power Spokesperson George Porter said lawmakers did not ask Appalachian Power to participate in Tuesday’s press conference.

Sometimes it feels as though they’re trying to villainize us, said Appalachian Power Spokesperson, George Porter.

Porter said more rate relief is coming.

We’ve also implemented saucerization, that was approved by the Va State Corporation Commission last year, which is an $11.44 decrease for customers. They should expect that sometime this Spring. We also have another decrease of $10 that will take effect in November of this year for the Fuel Factor, said Porter.

He also challenges claims about Appalachian Power’s profits and rates compared to the national average.

They also mentioned that we have some of the highest rating the country. Right now, in Virginia, our rates are 16.38 $ per kilowatt and the national average is 17.98 $ per kilowatt, so there’s no way we could have some of the highest rates in the country, said Porter.

But for customers on the ground, the impact has been ongoing.

Phat Patty’s Bar and Grill in Lebanon just opened in December and already received a $3,000 electric bill.

We were expecting $1,000 tops. It’s a little frustrating because we want to succeed, said Phat Patty’s Bar and Grill Bar Manager, Krissy Varner.

Bar Manager, Krissy Varner said rising utility costs make it harder to stay open.

I don’t’ know how anybody can when you gotta pay that, rent, water bill and pay your staff, said Varner.

Meanwhile Resident Wanda Burke said rising electric bills only add to the cost-of-living strain.

People are just getting overburdened; there’s just no way we can keep doing this way, they have to do something, said Burke.

Lawmakers said they plan to continue discussions and that this energy affordability package could be taken up as early as next week.