COURT KILLS VA. POWER RATE INCREASE; UTILITY OWES REFUNDS

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

DATE: SATURDAY, February 29, 1992                   TAG: 9202290268
SECTION: VIRGINIA                    PAGE: A5   EDITION: NEW RIVER VALLEY 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Medium
COURT KILLS VA. POWER RATE INCREASE; UTILITY OWES REFUNDS
Virginia Power must pay as much as $114 million in refunds to customers because of a state Supreme Court ruling Friday that overturned a rate increase, the attorney general's office said.
The seven justices ruled unanimously that the State Corporation Commission erred when it gave Virginia Power an expedited $79.7 million rate increase last year. That meant the rate increase could take effect in 30 days instead of after the 150-day wait required for a general rate increase.
The court said the SCC's rules prohibit a utility from getting an expedited rate increase if its application cites costs that are not included in its last general rate increase.
The court told the SCC "to enter an order requiring Virginia Power to make appropriate refunds to its ratepayers."
Virginia Power has customers in parts of Bedford, Botetourt, Alleghany, Bath and Rockbridge counties.
Attorney General Mary Sue Terry said that customers would be entitled to as much as $114 million in refunds, which would cover the $79.7 million rate increase plus interest.
The rate increase had been appealed by Terry's office; the Virginia Committee for Fair Utility Rates, a group of large industrial customers; and Jean Ann Fox, a York County resident who is president of the Virginia Citizens Consumer Council.
"The important result of this ruling is that the utility companies and the commission have to follow the rules that were put in effect to protect ratepayers," Fox said. "The power company can't ask for everything and expect to have it on 30 days notice."
Virginia Power was "extremely disappointed" by the ruling, said Bill Byrd, a company spokesman. "The court has instructed the State Corporation Commission to determine appropriate refunds and we are awaiting commission action on this matter."
He declined to comment on Terry's statement that customers could get up to $114 million.
The SCC is considering another expedited Virginia Power rate increase request of $148.5 million. The increase took effect in September, but the commission has recommended that the increase be pared to $84 million and customers be given refunds.

by Bhavesh Jinadra by CNB