CHARLESTON, W.Va. - Higher-than-expected coal prices and dwindling sales of electricity to other power plants has prompted Appalachian Power to request the largest rate hike ever proposed by a West Virginia utility, company executives said Monday.
Appalachian Power and Wheeling Power filed a request with the state Public Service Commission Monday to raise electric rates by 18.5 percent, starting in July. The two companies, both subsidiaries of American Electric Power, also want to increase rates by 14.5 percent next year and 13.2 percent in 2011.
"It's a large amount," said Jeri Matheny, corporate communications director with Appalachian Power. "That's why we want to work with the PSC. The higher costs mean it's more expensive to generate electricity."
We'll soon find out whether or not the WV PSC is a bunch of coal-powered stooges.
I have seen property tax reduced for coal companies (class III), while raising taxes for “normal” citizens. I see large amounts of Government money supporting various business types.
Again what happened in this situation? Maybe we are better off not to know.
Iceland is just about like us with mountain top removal.
mame another product that has risen 47% in the past year...Now name another utility, something that the public MUST have that has risen 47%. I didn't think you could.
If your company made 120 million in profits last year, yes, they should certainly make do status quo. Do you think people's salaries are going to go up 47% over the next three years? Not likely. How good of you to want the increase that will cause hardship on everyone else so you can have job security.
“This particular sentence means that no foreign aluminium company can come and knock on the door of the minister of industry. There will be no new plans about aluminium smelters,” said Skarphéðinsson in an interview with Iceland’s TV station, Channel 2."
This from the previous source "saving iceland".
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Looks like the Aluminum/electrical power combine are to Iceland what the coal industry has been to WV.
http://savingiceland.puscii.nl/?p=3731&language=en#more-3731
I am trying to re-locate the various sources I lost yesterday to a power outage.
It seems the people in Iceland are getting upset with the new gvt. because they opposed the new Century plant while they were running but now trying to renege.
Looks like a real fragile area might be sacrificed to build the Rio Tinto Alcan plant, which was rejected by the voters in 2007.
(rio tinto alcan now owns the sister plant to Century in Ravenswood. Both plants were originally Kaiser aluminum).
So it is a big incestuous deal.
Don't be surprised if Mark Rich turns out to be pulling the strings.
Don't know, I'm just sayin...
Businesses from all but a few sectors are reporting losses. In this economic situation a monopoly, by justification, does not denote special treatment. You raise your costs and impact other businesses (and people).
I question the increased cost statement. APCo still made 120 million profits last year (after dividends that increased). Coal contracts and futures have dropped dramatically. Maybe employee costs have increased. If like the auto industry, the continued cost of retires was not correctly posted financially (legally) in the past.
Sod, Century has multiple plants in Iceland (one under construction). Kind of hard to compete here if the oil, coal and utility companies have a protected (no competition) status within the United States. Also, the plant looks dead to me (no upgrades).
Businesses from all but a few sectors are reporting losses. In this economic situation a monopoly, by justification, does not denote special treatment. You raise your costs and impact other businesses (and people).
I question the increased cost statement. APCo still made 120 million profits last year (after dividends that increased). Coal contracts and futures have dropped dramatically. Maybe employee costs have increased. If like the auto industry, the continued cost of retires was not correctly posted financially (legally) in the past.
Sod, Century has multiple plants in Iceland (one under construction). Kind of hard to compete here if the oil, coal and utility companies have a protected (no competition) status within the United States. Also, the plant looks dead to me (no upgrades).
Businesses from all but a few sectors are reporting losses. In this economic situation a monopoly, by justification, does not denote special treatment. You raise your costs and impact other businesses (and people).
I question the increased cost statement. APCo still made 120 million profits last year (after dividends that increased). Coal contracts and futures have dropped dramatically. Maybe employee costs have increased. If like the auto industry, the continued cost of retires was not correctly posted financially (legally) in the past.
Sod, Century has multiple plants in Iceland (one under construction). Kind of hard to compete here if the oil, coal and utility companies have a protected (no competition) status within the United States. Also, the plant looks dead to me (no upgrades).
Seems they were in the process of building a huge facility on Iceland.
(essentially moving WV jobs to Iceland)
They have cheap geothermal energy there.
Anyways the gvt. is being taken over by a coalition of Social Dems. and Greens, and they are opposed to the expansion of the Aluminum Industry there.
And there is some scuttlebutt that they are working on upgrades to the potlines at Ravenswood.
Poetic Justice?
I dunno.
But I know lots of prayers have been going up over this.
I had googled a bunch of stuff and had the details all typed out ready to post and my power went out (ironically enough) so I dont have a source right now and I got to go.
But it is getting curiouser and curioser.
How about pay and benefit cuts? They will still be making good money.
What's wrong with this picture, Governor Manchin?
"AEP trying to recover that $9 million dollar a month loss from the Ravenswood." NOTHING MORE, NOTHING LESS! THEY are monopoly company in this area!
WE NEED TO BAND together.
In other words, they want the same profits, but they want us to cut our consumption in order to afford our monthly electric bill. And, after we all cut consumption, they'll go after yet another increase because they're not selling as much electricity. Get it? It's a vicious cycle, one that the PSC encourages by passing increases.
50% increase in 3 years? Someone needs to shake up the PSC!
Let me try to understand your logic...Are you saying that since they are trying to shut down the construction of new coal-fired plants, that that is a bad thing? Isn't the main reason AEP is saying they need to raise the prices because of the cost of COAL? The more plants that are built, the higher the demand for COAL , the higher the cost of the COAL. Yeah, you're right the Sierra Clubs of the country are the bad guys... nice logic genius.
The points discussed by AEP's Phil Moye are nothing but PR excuses, carefully crafted prior to release to the media. I would love to see him discuss these points in an open forum, if he has the nerve.
Again, it's time to take our concerns to the PSC before they act upon this request.
"The company had predicted it would sell $248.5 million in power to other electric utilities between July 2008 and this June, but those sales have almost disappeared. Revenue generated from those sales - electricity unused by AEP customers - keeps rates down."
"It has dried up," said Appalachian Power spokesman Phil Moye. "The slowing economy reduces the opportunity for off-system sales. Any profit from those sales goes back and is credited to our customers. It has historically been a big help in keeping our costs down."
That 43% will cost each MORE in the 3 years...
Take a bill that is $124.00 month (not including the taxes/fees added on)
$124.00 x 43% = $177.32
$124.00 x 18% x 14.5% x 13.2 = $189.64
$124.00 x 18.5% (first year) = $146.32
$146.32 x 14.5% (second year) = $167.53
$167.53 x 13.2% (third year) = $189.64
AEP GETS $12.32 more a MONTH at the end of the three years and that is just for a bill that started at only $124.00
One story says
By Charleston Gazette
18% x 14.5% x 13.2%
http://wvgazette.com/News/200903090640
By WSAZ
18.5% x 18.5% x 13.5%
http://www.wsaz.com/news/headlines/40860072.html
Just goes to show to we can not always rely on the news
for correct information.
AEP has lied about the rate increase. Century Aluminum's closing is a factor and now it isn't. AEP, you need to trim your costs before you burden people who are barely making it now. I only wish I could increase my income by making faulty predictions in sales, or declare a business loss when I don't meet my profit objective. With the economy in the wretched mess it is in, this is NOT the time for such an obscene rate hike. You will never be able to satisfactorily explain your huge request.
How many people will have to freeze/starve to death to satisfy the greed of these CEO's?
THAT IS NOT WHAT AEP SAID A COUPLE OF WEEKS AGO AND THE ABOVE STATEMENT DIRECTLY CONTRADICTS THAT. OBVIOUSLY, THESE FOLKS CAN NOT BE TRUSTED.
AEP WILL NEVER STOP COMING TO THE TABLE FOR MORE AND THEY SHOULD HAVE NEVER BEEN ALLOWED TO DO SO IN THE FIRST PLACE.
WHERE IS OUR LEADERSHIP?