MANCHIN'S TAX WOULD INCREASE ELECTRIC BILLS

(04/10/2009)

The governor's alternative and renewable energy bill would result in an increase in electricity rates for West Virginia consumers, according to Public Service Commission, consumer advocate Byron Harris. Harris told house finance members the bill's requirement for energy companies in West Virginia to use more alternate and renewable energy sources in the future amounts to purchasing new capacity. He says anytime that happens rates go up. The legislature failed to pass the governor's $135 million tax on the proposed high tower coal generated electric project slated to cross the state. That project would deliver coal generated electric from West Virginia to the eastern corridor. Opponents of that tax said the power company would just pass the tax along to the consumer. See   The Power Line How much the PATH line tax would add is unclear. The consumer advocate has estimated Allegheny Energy would spend between $8-25 million to fulfill the requirements of the renewable energy bill and Appalachian Power between $13-38 million. Harris says that could increase monthly power bills on average customers as much as $1.75. After the committee heard Harris' information, they passed the bill. Supporters say it's important for more new energy sources to be used in West Virginia. Delegate Mitch Carmichael, R-Jackson, voted against the proposal, saying "It will raise rates and it's bad public policy."

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