TERRY URGES SEC TO CUT VA. POWER'S RATE REQUEST

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, January 8, 1992                   TAG: 9201080102
SECTION: BUSINESS                    PAGE: A7   EDITION: METRO 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Short
TERRY URGES SEC TO CUT VA. POWER'S RATE REQUEST
Attorney General Mary Sue Terry urged state utility regulators Tuesday to slash about three-fourths of Virginia Power's requested $184 million rate increase.
Virginia Power, which serves portions of Bedford, Botetourt, Rockbridge and Alleghany counties, in August asked the State Corporation Commission to approve the increase to keep the utility's rate of return at 13 percent.
"At a time when passbook savings and certificates of deposit are paying 3 to 5 percent and Treasury bills are down to the 3 to 4 percent range, I believe the requested rate of return of 13 percent is excessive," Terry said. "Times have changed, and Virginia Power's rate of return needs to be adjusted as well."
Virginia Power has been collecting higher rates since Sept. 1, subject to customer refunds if the SCC reduces the increase. A public hearing on the increase is set for Jan. 15; the SCC will hear expert testimony Jan. 29.

by Archana Subramaniam by CNB