Legislation freezing Appalachian Power rates gaining support

Jan. 25—TAZEWELL, Va. — Republicans and Democrats representing communities across Southwest Virginia are supporting legislation which would put a two-year freeze on Appalachian Power Company's requests for rate hikes while adding citizen recommendations in the State Corporation Commission's decision-making process.

House Bill 2665 has been assigned to the House Committee on Labor and Commerce and it is anticipated to have a full hearing in the coming days, the bills sponsors, Delegate Will Morefield, R-Tazewell and Delegate Sam Rasoul, D-Roanoke, said.

Under the proposed legislation, the State Corporation Commission would be required to establish capped rates for Appalachian Power, according to a summary of HB 2665. The bill would require these capped rates to go into effect for any Phase I electric utility like Appalachian Power starting July 1 this year. The bill authorizes the commission to adjust such capped rates in connection with the electric utility's recovery of fuel and purchased power costs.

The bill's capped rates would expire on July 1, 2027, according to the bill's summary. It would also require the state Commission on Electric Utility Regulation to review and make recommendations about certain petitions filed by Appalachian Power with the State Corporation Commission. For each review, the bill would require the Commission on Electric Utility Regulation to convene a subcommittee that includes one non-legislative citizen member from each planning district in the electric utility's service territory.

George Porter, a media representative with Appalachian Power in Virginia, was contact by the Bluefield Daily Telegraph about HB 2665.

"We are aware of the Bill and we continue to review it, but we do not discuss open legislation," Porter said Friday.

Morefield introduced HB 2665 on Jan. 15.

"Citizens should have a stronger voice in the approval of the rate increases by the SCC and should have greater participation in the decision-making process," Morefield said. "They are the ones who make the tough decision to either pay their electric bill or buy food."

Rasoul, who is the legislation's chief co-patron, said no one in the Commonwealth "should be subject to outrageous rate hikes."

"Appalachian Power's profit margin is immorally high, stuffing their pockets with Virginian's hard-earned dollars," Rasoul said. "It is past time that we cap the amount they can charge for use of a necessary utility."

Senator Travis Hackworth, R-Tazewell, Chief Co-Patron from the Senate, also said he supported the bill's measures.

"Appalachian Power Company's rates are some of the highest in the Commonwealth" Hackworth said. "The General Assembly and our Southwest Delegation have heard the cries of Southwest Virginians and are looking at many options to bring some relief to monthly power bills. I applaud Delegate Morefield for his approach to this important issue."

Contact Greg Jordan at gjordan@bdtonline.com