UPDATE:WEST VIRGINIANS FACING 'PERFECT STORM' UTILITY RATE INCREASES - "Powerline" Blog Has Comments

(02/14/2013)
West Virginians are facing a "perfect storm" that could lead to higher utility rates in the coming years, according to the West Virginia AARP.

While the average utility customer saw a slight decrease in rates in 2012, West Virginia AARP spokesman Tom Hunter said the state Public Service Commission would soon be forced to deal with some major cases that could send those rates higher.

"While we're experiencing some stability in the utilities market here in West Virginia, we believe the future is very uncertain for West Virginia utility ratepayers," Hunter said.

AARP says the WV-PSC is already considering requests from Appalachian Power and First Energy to approve billion-dollar power plant purchases in the state. That could result in surcharges to consumers.

PSC Consumer Advocate Division director Byron Harris said First Energy has submitted a request to the PSC asking for approval to impose a $63.4 million surcharge to consumers to cover their acquisition of a Harrison County power plant.

Harris also says Appalachian is asking the PSC for approval to securitize nearly $400 million worth of fuel costs racked up since 2009. Those bonds would be paid off by a surcharge on consumers in coming decades.

Utilities have yet to approach the PSC with requests to recover damage costs from the June 29 Derecho and Superstorm Sandy.

APCo and First Energy submitted reports to the PSC estimating their Derecho damage was $192 million.

"I don't think they're just going to write those costs out. I expect to see those sometime in the next 12 months," Harris said.

The PSC has asked the utilities to implement better right-of-way tree-trimming programs after the Derecho, and those costs will likely be passed on.

In the meantime, WV residents should be thinking of ways to reduce their utility costs.

For comments on Perfect Storm read Bill Howley's Powerline   calhounpowerline.com