American Electric Power has developed a new plan for increasing and stabilizing electricity rates. The stabilization plan has been approved by the Public Utilities Commission of Ohio and will be effective from January 2006 to December 2008.
The plan involves rate increases for AEP's customers using Columbus Southern Power and Ohio Power. Columbus Southern Power is the only available electric supplier in Athens.
Columbus Southern Power will have a 3 percent increase applied to the generation rate every year for three years starting in 2006, with Ohio Power adding a 7 percent increase. The generation rate (the cost of generating electricity) constitutes 60 percent of electricity bills.
Terri Flora, spokeswoman for AEP, said the average Columbus Southern Power customer would see about a $2 increase in their monthly electricity bill.
The goal of the stabilization plan is to give AEP customers an idea of what price to expect in the next three years and prevent them from rate shock, Flora said.
The money collected from the rate increase will be used to protect the environment.
We have not had a rate increase in over 10 years
Flora said. Basically we are trying to add environmental improvement which obviously takes a lot of money.
Charlie Tholin, 55, of Coolville, said he prefers to know future rates instead of waiting for his bills to find out, because whatever they charge you have to pay. Tholin is a customer of Columbus Southern Power.
According to the plan, $14 million from funds generated by the 3 percent increase will be used to discount rates of low-income customers and assist with economic development.
We think it's really a win all around for customers and our environment
Flora said.
Despite AEP's enthusiasm, the Office of the Ohio Consumers' Counsel disapproves of the plan. Ryan Lippe, counsel spokesman, said the rate increase is a violation of the law.
According to the law, customers should be guaranteed rates that correspond with a broader electricity market and the area should be made competitive to other suppliers, Lippe said. The rate increase will stop this from happening.
AEP rates have been lower
but it doesn't mean that they can increase their rates unlawfully
he said.
The Counsel's major concern is that this decision will be harmful in the long run, Lippe said. The counsel plans to ask the Public Utilities Commission of Ohio to reconsider their approval of the rate increase, and if that doesn't work, then it plans to bring the case to court.
17
Archives
Raweeratch Phrompechrut
