AEP Rate Hike Draws Local, State Official Opposition
SCC Asked to Deny Approval for Increase

by Scotty Wampler
Staff Reporter
  An American Electric Power Company rate increase of some 22 percent is receiving strong opposition from local and state officials, including State Senator Phillip Puckett.
  "If they were proposing a modest rate increase, similar to the increases in inflation and the consumer price index, then I and my constituents would certainly have to understand that is reasonable and is the cost of doing business in today's climate," Puckett wrote in a letter addressed to Virginia State Corporation Commission Chairman Mark C. Christie and Commissioners Theodore V. Morrison, Jr. and Judith Williams Jagdmann. "But, certainly not an increase that is in the neighborhood of a 25 percent rate hike."
  A resolution opposing the rate increase was adopted by the Buchanan County Board of Supervisors Monday on a motion by Garden Supervisor Buddy Fuller and second by Knox Supervisor Pat Justus. It was agreed to unanimously and will be forwarded to state legislators and the governor as well.
  "They say it's a 22 percent increase, but most people affected say it (their bill) has been in the neighborhood of 50 percent to 100 percent," Fuller alleged.
  It has not been uncommon for average residents to report experiencing electricity bills of some $300 to $400 or more per month for the past two months, when in the past those bills have been in the neighborhood of $200 to $250.
  The SCC allowed AEP to implement a rate hike on consumer electricity bills in November, pending final approval by the state regulatory agency this spring. In the event the rate increase is not approved, AEP will have to refund consumers whatever portion of the increase, if any, that is not allowed.
  The rate increase proposal is currently being reviewed by the SCC.
  In 2006, AEP reported a profit of $1 billion, or $2.54 per share, up 45 cents per share.
  AEP, which has more than  five million customers in 11 states, saw its revenue rise to $12.6 billion last year, up from $12.1 billion in 2005.
  "The majority of my constituents cannot afford this extreme rate increase and will not be able to pay their electric bills and will have a very difficult time with choosing between paying for electricity, medicines, or food, which are the basic necessities," Puckett continued in his letter to the SCC. "I have constituents, many of them widows, calling me constantly stating that they receive $600, $800, or $1,000 a month and that is all they have to live on and are now receiving $200 to $300 electric bills from AEP."
  Puckett reminded members of the commission of the economic situation in Southwest Virginia, asking them to consider the many low-income families in the region before allowing the electric company to move forward with the increase.
  "We are looking to you and your fellow commissioners of the State Corporation Commission to stop AEP's extreme and unreasonable rate increase," he wrote. "I would respectfully ask that you and your colleagues stop this unreasonable rate increase and expedite your review of these increases so that answers and relief can be provided to my constituents in Southwest Virginia."
  Individuals interested in expressing their concerns may contact the commission toll-free (800) 552-7945 to state their opposition to the increase.

Boards Okay Closures on Rt. 680 to Expedite Work
Motorists Will See Road Closings as Early as March

by Cathy St. Clair
News Editor
  Resolutions authorizing the closure of Rt. 680, Bill Young Mountain, this summer and during set hours later this spring and once the 2007-08 school year begins were adopted Monday by both the Buchanan County Board of Supervisors and the Buchanan County School Board.
  The action followed a 20-minute public hearing, during which representatives of a trucking company and Jewell Smokeless Coal Corporation asked that a less restrictive closure plan be implemented. The planned road closure, they said would mean longer travel times for trucks hauling coal from mines in the Pilgrims Knob area.
  Bizzack Inc. was awarded the $7.9 million contract on the project which includes the elimination of steep curves and the lowering of the gap on a 1.3-mile section of the road from the top of the mountain at Contrary to Pilgrim’s Knob. The project, which started earlier this week, is expected to be completed by December 2008. The planned road closures are expected to begin as early as March and will be announced in advance of the start date to allow motorists to plan alternate routes and travel times, according to Virginia Department of Transportation Resident Engineer Conrad Hill.
  Under the resolutions adopted Monday, the road will be closed completely this summer after the current school year ends until the start of the 2007-08 academic year. During the remainder of this school year (once the closures begin) and throughout the next school year, the road will be closed from 9 a.m. to 2:30 p.m. while school is in session. Motorists will be able to travel the road during other hours not in that closure time. During holiday periods and other times during which schools are scheduled to be closed, the road will also be closed. The road may also be closed at night from 7 p.m. to 5:30 a.m. to accommodate night construction shift work.
  Hill noted that the Rt. 680 improvements are difficult due to the excavation needed which will include blasting. Closing the road, he said will allow for construction to proceed more quickly.
  Proceeding more quickly will make the project safer to construct overall and ultimately, it is expected the project completion that way will also result in savings of secondary road funds.

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