Consumers stunned over electric rate increases
By
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The Highland County Press
As American Electric Power reported its 2011 year-end earnings (up 59 percent) of $1.941 billion or $4.02 per share, compared with $1.211 billion or $2.53 per share in 2010, a number of area consumers have voiced concerns over significant spikes on their electric bills.
Two Hillsboro businesses told The Highland County Press their bills increased approximately 40 percent from the previous month.
Prior to the start of Tuesday evening's candidates forum hosted by the Highland County TEA Party, Highland County Commissioner Tom Horst said the courthouse electric bill increased 700 percent over the previous month.
Horst said the county is contacting its utility company to question the huge increase.
Reporting in the Jan. 27 Columbus Dispatch, Dan Gearino said "Some small-business owners are furious about a sudden rise in electricity costs, the result of a new American Electric Power rate plan that took effect this month. With immediate increases of up to 40 percent, business owners said they are faced with cutting workers, reducing investment and making other changes as they struggle to deal with an increased expense that many of them did not see coming."
According to the Dispatch, the Public Utilities Commission of Ohio (PUCO) has received "about 25 complaints about rates from small businesses this week, said commission spokesman Matt Butler."
Last month, the Ohio Consumers' Counsel said Dec. 14 approvals by the Public Utilities Commission of Ohio of two settlements in AEP Ohio cases and its denial to rehear a decision resulting from an appeal have a mix of results for residential consumers.
The counsel said AEP Ohio will be allowed to begin collecting previously PUCO-approved costs that were deferred for future collection. Payment for these costs will be made one year earlier than AEP Ohio proposed which will help reduce the total amount customers will pay for the deferred costs.
Jeff Rennie, an AEP spokesman, told the Dispatch the "new rates are the result of a compromise between AEP, the PUCO and many other companies and groups. The plan calls for AEP to change gradually to prices set by market forces.
"In the past, those rates might have been subsidized by other rate classes, but now those rates will reflect the cost to provide service to that customer,” Rennie said.
"The PUCO and several other groups crafted the rates in a way that provides a discount for large manufacturers, one that essentially is paid for by rate increases for others, including small businesses. Supporters of the plan say it helps the economy by reducing costs for the largest employers."
According to www.aepohio.com, AEP Ohio filed a request last year for an increase in its distribution rates with the Public Utilities Commission of Ohio. The company proposed that the rates become effective in 2012.
"This request seeks to bring rates in line with the current investment and costs necessary to provide safe, reliable distribution service to customers," AEP said. "It has been nearly two decades since the AEP Ohio companies filed rate cases in which distribution cost of service rates were considered for their respective service areas.
[[In-content Ad]]“It is vitally important to maintain adequate investment in the distribution infrastructure,” Joe Hamrock, AEP Ohio president and chief operating officer, said in last year's news release. “Current rates date back to the early 1990s, and through continuous improvement we have managed to keep costs in line with those rates. This proposal will provide for ongoing investment to support customers’ expectations of reliable service at a reasonable cost.”
AEP Ohio provides electricity to nearly 1.5 million customers of major AEP subsidiaries Columbus Southern Power Company and Ohio Power Company in Ohio, and Wheeling Power Company in the northern panhandle of West Virginia. AEP Ohio is based in Gahanna, Ohio, and is a unit of American Electric Power. American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP’s headquarters are in Columbus.
For customer service, call AEP Ohio's 24-hour Customer Solutions Center toll-free at 1-800-672-2231. For the AEP corporate headquarters, call 614-716-1000.
As American Electric Power reported its 2011 year-end earnings (up 59 percent) of $1.941 billion or $4.02 per share, compared with $1.211 billion or $2.53 per share in 2010, a number of area consumers have voiced concerns over significant spikes on their electric bills.
Two Hillsboro businesses told The Highland County Press their bills increased approximately 40 percent from the previous month.
Prior to the start of Tuesday evening's candidates forum hosted by the Highland County TEA Party, Highland County Commissioner Tom Horst said the courthouse electric bill increased 700 percent over the previous month.
Horst said the county is contacting its utility company to question the huge increase.
Reporting in the Jan. 27 Columbus Dispatch, Dan Gearino said "Some small-business owners are furious about a sudden rise in electricity costs, the result of a new American Electric Power rate plan that took effect this month. With immediate increases of up to 40 percent, business owners said they are faced with cutting workers, reducing investment and making other changes as they struggle to deal with an increased expense that many of them did not see coming."
According to the Dispatch, the Public Utilities Commission of Ohio (PUCO) has received "about 25 complaints about rates from small businesses this week, said commission spokesman Matt Butler."
Last month, the Ohio Consumers' Counsel said Dec. 14 approvals by the Public Utilities Commission of Ohio of two settlements in AEP Ohio cases and its denial to rehear a decision resulting from an appeal have a mix of results for residential consumers.
The counsel said AEP Ohio will be allowed to begin collecting previously PUCO-approved costs that were deferred for future collection. Payment for these costs will be made one year earlier than AEP Ohio proposed which will help reduce the total amount customers will pay for the deferred costs.
Jeff Rennie, an AEP spokesman, told the Dispatch the "new rates are the result of a compromise between AEP, the PUCO and many other companies and groups. The plan calls for AEP to change gradually to prices set by market forces.
"In the past, those rates might have been subsidized by other rate classes, but now those rates will reflect the cost to provide service to that customer,” Rennie said.
"The PUCO and several other groups crafted the rates in a way that provides a discount for large manufacturers, one that essentially is paid for by rate increases for others, including small businesses. Supporters of the plan say it helps the economy by reducing costs for the largest employers."
According to www.aepohio.com, AEP Ohio filed a request last year for an increase in its distribution rates with the Public Utilities Commission of Ohio. The company proposed that the rates become effective in 2012.
"This request seeks to bring rates in line with the current investment and costs necessary to provide safe, reliable distribution service to customers," AEP said. "It has been nearly two decades since the AEP Ohio companies filed rate cases in which distribution cost of service rates were considered for their respective service areas.
[[In-content Ad]]“It is vitally important to maintain adequate investment in the distribution infrastructure,” Joe Hamrock, AEP Ohio president and chief operating officer, said in last year's news release. “Current rates date back to the early 1990s, and through continuous improvement we have managed to keep costs in line with those rates. This proposal will provide for ongoing investment to support customers’ expectations of reliable service at a reasonable cost.”
AEP Ohio provides electricity to nearly 1.5 million customers of major AEP subsidiaries Columbus Southern Power Company and Ohio Power Company in Ohio, and Wheeling Power Company in the northern panhandle of West Virginia. AEP Ohio is based in Gahanna, Ohio, and is a unit of American Electric Power. American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP’s headquarters are in Columbus.
For customer service, call AEP Ohio's 24-hour Customer Solutions Center toll-free at 1-800-672-2231. For the AEP corporate headquarters, call 614-716-1000.