Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, June 28, 1994 TAG: 9406300044
SECTION: BUSINESS PAGE: C8 EDITION: METRO
SOURCE: GREG EDWARDS STAFF WRITER
DATELINE: LENGTH: Medium
Because the proposed new rates have been in effect on an interim basis since May 1993, the company's electric customers will be refunded the portion of their bills that they have overpaid. For an average residential customer, that will amount to approximately $23.
The company had proposed a rate increase that would bring in roughly $31.4 million more annually in revenue. The SCC denied Apco $13.5 million of that requested increase.
The SCC said that an increase of $17.9 million that will allow Apco an additional 2.8 percent in annual operating revenue is enough.
Apco's top executives were in a management meeting when word of the SCC's decision was received Monday afternoon and were unavailable for comment.
"We really haven't had time to evaluate [the SCC decision] to see where we go from here," said Dick Burton, a company spokesman.
"Obviously, we're disappointed," he said. He added that the utility had had a "tough year," alluding to severe winter ice storms that cost the company millions of dollars in repair costs.
The SCC decision reduces by $1.75 the monthly electric bill for an average Apco residential customer. For 1,000 kilowatt hours of electricity, the residential rate of $63.04 will drop to $61.29.
The SCC set Apco's rate of return on common equity at 11.4 percent with an authorized range of 10.5 to 11.5 percent. The company had been asking a rate of return of 12.5 percent.
Apco, which is headquartered in Roanoke, provides power to 410,000 customers in Southwest Virginia.
by CNB