Appalachian Power's Rate Increase

The other day, I spoke with a Mr. Read, our rep with Appalachian Power about their 20% rate increase.  It tripled our barn account.  First, we spoke a little about why we weren't advised when we put our barns on a separate electric meter, that we'd be charged a "non-residential" rate.  The rate is higher than if we just tied in to one of the houses on the farm.  I swear that initially, we were charged the same rate as a "residence" meter.  Businesses are charged a "non-residential" rate and we hardly qualify as a business in the normal sense, since farms right now are not making much money. 

"Do you LIVE in the barn?"  he asked.

"Well, no," I replied.

Then your barns are "non-residential" and qualify for that rate.

"People don't live in their garages." I said.  "Because they do not have separate electric meters for garages, they are not charged a higher rate."

I just wish they'd informed us when we decided that we'd keep track of how much we are spending to have lights and power in the barns.

Now, let's talk about the across the board 20% rate increase for residential service:

Most people, in order to be environmentally responsible, have invested in low wattage new light bulbs and are taking steps to reduce their use of electricity -- turning out lights, lowering the thermostat in winter and raising it in summer, using alternative energy sources, etc.

Since we are using less electricity than formerly, Appalachian Power (American Electric Power) is making less revenue.

They then go to the Virginia Corporations Commission and ask for a rate increase.

Get the picture?  We are less comfortable than we were before, and we get to pay more than before the conservation measures!

Mr. Read told me the sad story about how Appalachian Power has never made a sufficient amount of money to justify their investments.  He said that they are now required to upgrade facilities and, oh, boo hoo, invest in alternative energy such as windmills.  Therefore, they must pass these costs on to consumers as well.

Although the rate increase hasn't passed and there will be hearings which allow consumer input, AEP has already started to charge customers in this month's bill.  Mr. Read said that should the rate increase be denied, we will all get refunds on paid bills.  You can make a comment at the Corporations Commission of Virginia website:  http://www.scc.virginia.gov/case/PublicComments.aspx  You only have March 3rd to do so.

The Roanoke Times covered a recent meeting re the rate increase attended by citizens from around the State.
I wonder (as you know, I wonder a lot) why anyone would want to own a power company when it supposedly can't make enough money to suit its owners and stockholders?!