Power Companies Set for 2% Rate Increase

Appalachian Power and Wheeling Power are set to raise rates 2% to cover rising fuel expenses.

The two American Electric Power subsidiaries announced the settlement with the state Public Service Commission on Friday. The increase will take effect July 1 if formally approved by the PSC. A residential customer using 1,000 kilowatt hours of electricity a moth would see an increase of $2.05.

The utilities say the increase is “a dollar-for-dollar pass through expense” that does not boost their profits.

They had originally asked for a 4 percent increase, but the PSC’s Consumer Advocate Division said that was too much.

Appalachian Power to Close 3 Coal-Fired Plants

Three coal-fired power plants in West Virginia have shut down operations.

Media outlets report that Appalachian Power’s Kanawha River Power Station at Glasgow, the Kammer Power Station near Moundsville and the Phillip Sporn Power Station at New Haven were closed Sunday.

Appalachian Power had announced in 2011 that it planned to close the plants, along with three coal-fired plants in Virginia, Ohio and Indiana. The company had said it would be cost-prohibitive to equip them to comply with new federal emission standards for mercury and other hazardous air pollutants. Another coal-fired plant inVirginia is being converted to natural gas.

In March, the company sent notices regarding the West Virginia plant closures to the state and to employees.

Meeting in Belle to Look at Long-Term Impacts of Kanawha County Mud & Rock Slides

In Kanawha County, reoccurring mud and rock slides have led to the on and off closure of a portion of route 60 near Cedar Grove.

A community group has organized a meeting in Belle this evening to discuss the long-term impacts that these reoccurring closures could have on businesses and residents.

The Upper Kanawha Valley Citizens Advisory Council is inviting community members and business representatives to attend this evening’s meeting.

Representatives from the Department of Highways will be there and will discuss the long-term plans for resolving the issue of mudslides and rock slides which have led to the on and off closures.

Businesses that are being affected are also invited to attend.

According to Dave Fletcher, the chairman of the Upper Kanawha Valley Citizens Advisory Council, Appalachian Power and Medford Trucking are among the businesses that have expressed concern.

Residents in many of the communities have reported long delays on their commutes, since they’ve had to take detours along route 61 in the last week.

The meeting will be at 5:30 PM, Wednesday, April 29th at Belle City Hall.

State Environmental Regulators, Coal and Power Industries Submit Comments on EPA Carbon Rules

State environmental regulators and leaders of the coal and power industries announced yesterday they’d filed comments on the Environmental Protection Agency’s proposed rules that aim to reduce carbon emissions.

Governor Tomblin said the Department of Environmental protection worked with the West Virginia Division of Energy and the state Public Service Commission in filing a nearly 70 page document responding to the proposed rules . At a news conference Monday, Tomblin called those rules “unprecedented” and “illegal.”

“If enacted this rule will have devastating impacts on the economy and our nation,” Tomblin said. “With the introduction of these proposed rules, the EPA has brazenly inserted itself into a role that goes far beyond its responsibility under the Clean Air Act.”

Officials from the West Virginia Coal Association and Appalachian Power joined Tomblin in condemning the EPA, claiming the rules would increase electricity rates, while reducing carbon emissions by less than one percent.

The rules, proposed in June, seek to reduce carbon emissions at existing power plants by 30 percent nationally by the year 2030. If the rule is approved as is, West Virginia would have to cut its individual emissions by 15 percent compared to 2012 measurements. But along the way, West Virginia would have to make significant progress by 2020.

Appalachian Power President and COO Charles Patton argues that the EPA has ignored the fact that his company has already reduced carbon emissions by nearly 20 percent in recent years with the closure of old power plants and an increased use of natural gas. He also claims the rules’ implementation would cause coal fired power plants across the country to close.

“The question, I guess, that I would ask is: who believes that, if in five years you shut down one-third of the entire electric generating fleet in this country, that costs would not be impacted for normal customers and reliability would not be impacted in our ability to build—to replace—that which is shut down because of this rule?” Patton asked rhetorically.

Bill Raney of the West Virginia Coal Association said the proposed rules would take 49 gigawatts of power off the grid in the next five years. With Appalachian Power’s John Amos plant in Winfield producing about three gigawatts, Raney says that means about 16 similar-sized production locations would be shut down.

“You think about the economic devastation. Not only what it does to the locale where that plant might be located, but think about what it does to the grid. Taking a third of the generation capacity out and with an anticipated tough winter coming, I think we’re going to have some difficulties,” Raney said.

“They say ‘Well, this doesn’t take effect for a year or two years.’ But the uncertainty that is created causes people not to invest in the modernization that’s necessary to keep them working,” he added.

Raney said his organization collected over 12,000 comments from individuals across the state.

A report issued earlier this year by West Virginia University’s Center for Energy & Sustainable Development and other partners suggested the state focus on energy efficiency and increasing the use of natural gas to help meet the new standard. Governor Tomblin said the state has made efforts to increase the use of natural gas, wind and hydroelectric energy sources, as well as conservation and renovation programs. Still, he says the carbon emissions rules are too costly for the coal industry.

“Those things we are doing but, at the same time, our production of electricity for a century has been based the use of on coal in West Virginia. It’s affordable, it’s reliable and it’s one of those things that does not require constantly new power plants to be built,” Tomblin explained.

Monday was the final day for comments to be submitted to the EPA on the proposed rule.

You can view the Department of Environmental Protections comment here

What Are West Virginia AEP Customers Saying About AEP's Proposed Rate Increase?

The Public Service Commission is hosting meetings across the state as American Electric Power asks to raise electric rates on customers. Wednesday they heard from folks in McDowell County, many of which, oppose the rate increase. On Thursday they were in Mercer County.

Folks at the meeting expressed concerns about:

  • Reliability of Service
  • Tree Cutting and Removal
  • Equipment and Supplies
  • AEP Executive Salaries
  • Elderly Budgets
  • Poor Economy Due Partially to Job Loss in Coal Industry
  • Other More Pressing Needs for Public Offices
  • Crumbling Infrastructure

Allison Barker, Spokesperson for Appalachian Power, which serves Southern West Virginia, points out that the power company is asking for customers to pay more to improve reliability of the service.
“Anyone who was in West Virginia,” Barker said, “remembers 2012 and the derecho and Superstorm Sandy just a few months later. So we’re still trying to recover from that and repair our infrastructure this increase will help us address that.”

AEP is also proposing to use the money to create a program to clear trees on a regular cycle.

Appalachian Power and Wheeling Power, both units of American Electric Power, want to increase rates an average of 17 percent to customers across the board but for residents the utility proposes a 22 percent increase and about 10-12 percent increase on commercial or industrial rates.

According to a release, AEP employs about 2,500 people in the state.

Chairman Michael Albert of the West Virginia Public Service Commission said during the meeting that the AEP will get approval for an increase, but not the full amount.

The public is invited to attend the remaining meetings:

  • November 13, 2014 at 1:00 p.m. & 6:00 p.m. at the Cabell County Courthouse in Huntington
  • November 20, 2014 at 1:00 p.m. & 6:00 p.m. at the Ohio County Courthouse, City-County Complex in Wheeling
  • January 12, 2015 at 1:00 p.m. & 6:00 p.m. at the PSC Office 201 Brooks Street Charleston

Chairman Albert says a decision should be made by Spring 2015 after the cold winter months.

Appalachian Power Expands Energy-Saving Programs in W.Va.

Appalachian Power has expanded its energy efficiency programs for West Virginia businesses.

Officials say changes to the programs are making it more flexible than previous energy efficiency programs for commercial and industrial customers.

The Charleston Gazette reports that programs allow manufacturers, hospitals, schools and other nonresidential energy users to receive funding or incentives for existing and new projects that help them become more energy efficient. Applicable projects include custom heating and air conditioning, lighting, motors, controls and data systems installation.

Officials say there’s $550,000 budgeted for the programs this year.

Companies must submit project plans for approval to qualify for funding assistance. This year’s projects must be submitted by Dec. 31.

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