Upshur County Commission Seeks More Info on Energy Rate Hike
By Gary Mallonee, Staff WriterArticle Photos
Upshur County commissioners requested the presence of an Allegheny Energy representative at its meeting Thursday to provide further details on a the proposed rate hike.
Charles Friddle, an account manager for the power company, explained why the rate increase was necessary as well as ways people can offset the higher cost.
"The price of coal has increased greatly," Friddle said. "It has risen 236 percent since May 2007."
The average rate for 1,000 kilowatt hours per month is now $73, Friddle said. With the proposed rate increase, it would jump to around $86 a month. The regional average, he said, is around $100 with the national average at about $104 per month.
Friddle said Allegheny Power, the electric delivery subsidiary of Allegheny Energy Inc., asked the West Virginia Public Service Commission for a rate increase to offset higher coal prices in an attempt to recover an additional $173 million in fuel and purchased power costs on Aug. 29. The filing was made jointly by Monongahela Power and The Potomac Edison Company, both subsidiaries of allegheny Power.
The proposed increase is largely due to the dramatic rise in coal prices, Friddle said, which is the single largest component of Allegheny's cost of producting electricity.
"Allegheny's rates in West Virginia have been stable for many years," Friddle told commissioners. "Allegheny's residential rates in West Virginia are among the lowest in the nation."
If approved by the PSC, Friddle said the rate hike will go into effect in January, increasing residential rates by 18 percent, commercial rates by 20 percent and industrial by 24 percent.
"The rate increase has nothing to do with the proposed PATH (Potomac-Appalachian Transmission Line) project," he said. "It is totally due to the increase in fuel and purchased power costs."
Friddle said there were several ways that customers could manage their bills that includes a budget plan, special payment plans and access to energy assistance programs.
Some low income assistance programs that are available for Upshur County include the following:
n The 20-percent discount program administered through the West Virginia Department of Health and Human Services. To be eligible, the account holder or spouse must receive supplemental Social Security Income and/or food stamps or be an Adult With Dependent Children (AWDC) recipient. The 20-percent discount will be applied to the utility bill between Nov. 1 and March 31.
n Dollar Energy Fund (DEF), a West Virginia Utility Assistance Program. Allegheny Power shareholder's donations are matched dollar for dollar and are administered through the Salvation Army to provide utility bill assistance to low-income customers at or below the 150 percent Federal Poverty Guidelines.
n Energy Assistance Program (EAP), administered through the West Virginia DHHR to help eligible customers avoid termination of service.
n Low-Income Energy Assistance Program (LIEAP), also administered through DHHR. Customers must be at or below the 130 percent Federal Poverty Guidelines to be eligible for the program.
In other business, the commission:
- Approved the president to sign a DUI grant request from the Upshur County Sheriff's Department for overtime. The grant will be used to pay deputies for DUI enforcement between Oct. 25 and Jan. 25, 2009.
- Announced trick-or-treat hours for Upshur County. Costumed children can collect goodies on Oct. 30 from 5:30 p.m. to 7 p.m.
- Approved an agreement with L. Robert Kimball & Associates for training services related to road centerline dataset.
- Approved an agreement with NewTech Systems for fire alarm testing and an inspection at the courthouse.
- Approved the employment of Susan Ford as a contract employee for the 911 Mapping and Addressing project at the rate of $15 per hour.
- Received notification from the governor's office regarding the approval of a $500,000 Small Cities Block Grant that will extend sewer service to the Industrial Park.
The commission meets at 9 a.m. every Thursday at the Upshur County Courthouse Annex.
