Chamber News

Armstrong Vows To Continue Fight of Appalachian Rate Increases

Del. Ward Armstrong vowed to local business leaders on Wednesday that he will continue fighting Appalachian Power Co. rate increase proposals.

Delegate vows to fight rate hikes Thursday, April 15, 2010 By MICKEY POWELL - Bulletin Staff Writer Del. Ward Armstrong vowed to local business leaders on Wednesday that he will continue fighting Appalachian Power Co. rate increase proposals. “I will not give up until we have meaningful regulation of electric utilities� in the state, Armstrong, D-Collinsville and the House minority leader, told about 100 people attending the Martinsville-Henry County Chamber of Commerce’s annual Post-Legislative Luncheon at Forest Park Country Club. “I am absolutely convinced,� he said, that regulations now are “flawed, too loose� and have led to power bills that are too high and “hurting businesses all over southwest Virginia.� The House and Senate commerce and labor committees will meet with the State Corporation Commission (SCC) on Tuesday to discuss possibilities for controlling Appalachian rate hikes. Del. Danny Marshall, R-Danville, said he is optimistic something can be done to reduce area residents’ power bills. Both Marshall and Del. Don Merricks, R-Pittsylvania County, serve on the House Commerce and Labor Committee. Larry Jackson, Appalachian’s external affairs manager, was at the luncheon, and his presence was mentioned by lawmakers. After the event, he said that Appalachian is willing to work with the committees and the SCC. However, he said — and Appalachian maintains — that people generally are seeing higher bills due to two reasons. One is heavy use of electricity during the harsh winter. The other is $2 billion in costs passed on to customers for new equipment to meet federally mandated environmental efficiencies. Armstrong’s comments were “really nothing different than we’ve heard before,� said Jackson, referring to Appalachian officials. The SCC is considering a 12.5 percent base rate increase that Appalachian has requested. It will rule on the increase by mid-July. According to information Armstrong has provided to the Martinsville Bulletin, the SCC has approved 11 rate increases sought by Appalachian since 2006. Due largely to protests by lawmakers and consumers, Gov. Bob McDonnell in February signed emergency legislation that suspended an interim 12.5 percent rate increase for Appalachian that went into effect in December. More than a dozen bills pertaining to the latest rate increase request were introduced for the recent legislative session, but some lawmakers reached a deal that the interim rate increase suspension bill would pass and no others would be considered, Armstrong said. “The whole (legislative) body ought to be able to consider a bill,� he said. The suspension saves a typical consumer using 1,200 kilowatt hours of electricity a month about $15 per monthly bill, Armstrong said. That is not enough savings, he said. Marshall said that if the House and Senate committees and SCC on Tuesday come up with an idea to control Appalachian rate hikes, he does not know if the General Assembly will have to consider it during next year’s session or if McDonnell or the commission could implement it beforehand. Legislation enacted in 2007 regulated electric utilities again following a period of deregulation. State Sen. Roscoe Reynolds, D-Ridgeway, said he thinks “we need to go back� to the way things were before deregulation when power companies could seek rate increases pertaining to basic rates and fuel costs only.