Democrats and Republicans from Southwest Virginia agree: Appalachian Power ratepayers have seen unsustainable bill increases and something has to be done.
“APCo bills are just too darn high,” said Roanoke Delegate Sam Rasoul speaking at a press conference Tuesday morning in support of changes to the regional power company’s regulations which he and others say could positively impact power bills.
Republican Senator David Suetterlein, who also represents the Roanoke area, is looking for changes at the State Corporation Commission, the body that governs Virginia’s power monopolies, including quote “subsidizing utility decisions that raise bills without improving reliability or service.”
Even he admitted it’s a bit hard to explain.
“We can make this a much smarter system and a system that will work to ensure we have reliable electricity at a fairer cost,” the Senator said.
But the SCC, a kind of administrative court, doesn't move quickly. Steve Haner from the conservative Thomas Jefferson Institute likes the regulatory angle on wrangling power bills. And while he hasn’t yet seen the specific proposals pitched Tuesday, Haner said they may take time to show up for ratepayers.
“SCC is slow, there’s no question about it," Haner told Radio IQ. "But if you’re running an economy of this size, a state of this size, that’s kinda how things happen.”
Legislators are also targeting APCO’s rate of return, their profit margins. But history suggests that rate is volatile, fluctuating from 4 to almost 10 percent over the last two decades. Still. Rasoul said the regulated nature of APCO means there’s room to cut.
In a statement, APCo said pushed back on the officials' comments about rate increases and proposed changes to the company's rate of return.
"The State Corporation Commission closely scrutinizes all of the company’s costs and rates to ensure they are reasonable and prudent," the statement read. "APCo has not even approached its authorized rate of return in ten years, and it has been even longer since the company was found to have over-earned."
This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association.
