Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, September 29, 1994 TAG: 9409290065
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: By SANDRA BROWN KELLY STAFF WRITER
DATELINE: LENGTH: Medium
The net impact of the utility's proposal announced Wednesday would be a 24-cent-a-month savings for a customer using 1,000 kilowatt hours of electricity. Apco said that customer's bill would decline to $61.04 a month from the current $61.28.
It also would reduce Apco's Virginia revenues by $11.9 million, or 1.9 percent.
Apco filed a two-part rate change request with the State Corporation Commission on Wednesday:
A $28 million decrease in the fuel factor component of its rates, which determines how much it can recover from customers for the cost of coal and other fuels it uses to generate electricity.
The utility said renegotiated coal contracts have lowered its fuel costs.
"This rate reduction is not unique," said Apco Vice President R. Daniel Carson Jr. "Since the mid-1980s, Appalachian has implemented a number of base rate and fuel factor reductions which have enabled us to charge rates today that are, in general, modestly lower than those of 10 years ago."
An increase in Apco's base rate would offset expenses from repairs from last winter's severe ice storms. Those higher rates would bring the company $16.1 million over three years.
Apco spent $23.7 million on repairs in the aftermath of storms Feb. 11 and March 2, the company noted in testimony filed with the SCC.
Carson called the impact of winter storms unprecedented in terms of the number of customers losing power, the extent of damaged facilities and the costs of making repairs.
The company wants to put the changes into effect Nov. 15.
by CNB