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

DATE: SATURDAY, February 18, 1995                   TAG: 9502200040
SECTION: BUSINESS                    PAGE: A-6   EDITION: METRO 
SOURCE: GREG EDWARDS STAFF WRITER
DATELINE:                                 LENGTH: Medium

ELECTRIC CABLE TV POSSIBLE

A bill introduced in the House of Representatives on Thursday would allow interstate electric-utility holding companies to offer local cable television and telephone services.

The bill was sponsored by Rep. Rick Boucher, D-Abingdon, at the request of American Electric Power Co., Columbus, Ohio-based parent of Appalachian Power Co. of Roanoke, a Boucher spokesman said. Republican Rep. Paul Gilmor of Ohio, a member with Boucher of the Commerce Committee, was a co-sponsor of the measure.

The legislation would reverse federal law that prohibits interstate electric-utility holding companies from offering communication services. Eleven holding companies, including AEP, serve 49 million households across the country, representing 20 percent of the electric-utility business.

AEP agrees that the holding companies need to have the right to offer communication services but has not been a leader in the effort, said Don Johnson, a spokesman for AEP and Apco. AEP has no interest now in being in the communication business but would like to have that option, Johnson said.

"It's not anything we're going to take advantage of right now," he said.

Boucher said he was confident Congress would approve the measure. The increased competition would help lower rates, expand program options and speed the deployment of advanced technology, he said.

The bill would prohibit utilities from using electric rates to finance telecommunication or cable TV services by requiring a separate subsidiary and bookkeeping, Boucher said.