Power Company Wants 43% Rate Hike (Charleston: health insurance, credit, buy)

[Two-Rivers]

Believe it or not, this story just went global.

A major part of this decision has to be because Century Aluminum closed.

Power Company Wants 43% Rate Hike

CHARLESTON, W.Va. (WSAZ) -- Appalachian Power customers in West Virginia could see a significant hike in their electric bills later this year.
The company is asking the West Virginia Public Service Commission for approval to raise rates by 43-percent.
An AEP spokesperson says the hike is necessary to recover some $442 million in fuel, purchased power and environmental compliance costs.
Appalachian Power wants the rate hike distributed over three years. 18.5 percent in year one and two, and 13.5-percent in year three.
The first hike would take effect July 1.
For customers that use 1,000 kilowatt-hours a month their bill would go from $72.28 to $83.65.

[Hinton Bound]

Buy a wood boiler for heat and hot water, and get rid of the electric dryer and range.

Dominion Virginia Power implemented a similar hike, 25% I think... 18.5% the first year.

[harborlady]

Don't care for privatized utilities? They'll succeed or fail, depending on which is more profitable to pursue.

Wondering why fuel & materials have been at exasperated prices for 3 +yrs and when it finally drops that's when they decide they want this doubled rate? This the custom of negotiating or just another case of political grandstanding?

I'm a big fan of fiscal responsibility. We can save them 2 cents a kwh by banning their newsletters campaigning for rate hikes included with the bill. That's very spendthrift of em IMO. Then of course there's always the option of reducing mgmt salary by 43% (retroactively, since they were too slow to pay attention?). Somehow that particular math goes over their head every single time.

The funniest reply in that blog was Gail...
"Maybe these big companies need a housewife in charge of their finances". hhahahahaaha!!! LOVE IT! ^5 Gail!

[Threerun]

And all this while commodity prices are falling through the floor.

I'm pretty pissed that NG is still $13.80 something p/MCF when prices at the wellhead and citygate are around $4...

[AliceT]

They just heard what kind of landfall profits health insurance companies are milking out of people and want to get in on the take.

The result will be the same... record number of people without health insurance and growing number living off the grid. I'm telling ya now folks, invest in solar and wind power. Ya can't go wrong.

[southernnaturelover]

Originally Posted by AliceT

I'm telling ya now folks, invest in solar and wind power. Ya can't go wrong.

Or maybe geothermal.

[vec101]

"Power Company want 43% rate hike"

If you like that, you are going to LOVE what's coming. Step right up, kids. Uncle Obama has even more fun and games in store for you.

Have you heard of the Cap and Trade system for energy? Well....

The Obama budget blueprint assumes that by 2012, the Treasury will be collecting $78.6 billion in new revenue from carbon emissions permits. From 2012 to 2019, it envisions that a total of $645.7 billion would be raised from auctioning of such emission allowances.

Obama proposes using about 80 percent of that anticipated revenue — or $526 billion — to pay for tax credits for low- and middle-income people to help offset higher energy costs. The rest of the money would subsidize alternative energy projects and firms. Obama counts on revenue from carbon permits - Capitol Hill- msnbc.com

Yipee Hi Hoe !!! Not only will we be paying even higher energy costs but there is a bonus -- a whole new welfare program will be created.

[David Kennedy]

I'm perplexed here..the Obama Stimulus Plan will pay for both TRail and PAth.

At 2 billion each...What is this rate increase intended to do?

It looks like the price spiral gouge...Gas goes up and then electricity...and then water and then gas and so on.

Looking at a vane type wind generator for electric power...time to to that...and put in a water well.

We must help ourselves become independant of them...Good luck everybody...

We will be forced into a Depression Era USA because we cannot afford the luxurys of gas and electric.
Wood burning will be our answer...worked for rural Russia and still does.

[AliceT]

The ultimate payback is coming. The rich white landowners will be made slaves. 100 years late, but a payback is a still a payback.

[Two-Rivers]

I did some math and if my math is correct, the math in that article is flawed.

Appalachian Power wants the rate hike distributed over three years. 18.5 percent in year one and two, and 13.5-percent in year three.
The first hike would take effect July 1.
For customers that use 1,000 kilowatt-hours a month their bill would go from $72.28 to $83.65.

$72.28 + 18.5% = $85.65 (year one)

$85.65 + 18.5% = $101.50 (year two)

$101.50 + 13.5% = $115.20 (year three)

They recently switched to monthly billing instead of 60 day billing. With my monthly bill being very close to those figures, when I compare my bill under the 60 day billing vs. the bill in the 3rd year, my electric bill will have doubled while using less electricity.

However, I'm not sure if the percentages are applied the way I have it.