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AEP GIVES MORE REASONS TO STOP POWER LINE |
| (03/11/2009) |
| AEP Gives Us More Reasons to Stop the Power Line Tax By Bill Howley The Charleston Gazette has an article quoting AEP about why it will be requesting a 43% rate increase. Why does AEP need this rate increase? "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." In other words, there are no customers out of state for AEP's extra power, so WV customers have to make up the difference. Well, if that's the case, then you'd think that AEP would be cutting back, especially on big new power lines that transmit power that no one out of state is buying anymore. Wouldn't you? So here's what they have done: "AEP slashed its capital budget for new construction by $750 million." Sounds good. But wait, they haven't cut funding for PATH to sell power that no one wants. One cost-cutting example: Appalachian Power has delayed construction of a multimillion-dollar Patrick Street electrical substation on Charleston's West Side. "That project will be pushed back until next year," Moye said. "It's not going to jeopardize reliability." It's good to know AEP is cutting back on projects that will directly benefit WV consumers, while it goes ahead with PATH which we will end up paying for because no one anywhere else will be buying the power that AEP wants to sell. I think AEP has given us a pretty good reason to stop the power line tax, because why should we be taxing what looks like a bad investment to start with?
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