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The Dispatch wrote
AEP customers criticize proposed rate hike
Tuesday, October 21, 2008
BY DAN GEARINO
Stung by a slumping economy and rising expenses, several American Electric Power customers said today that they can’t afford the utility’s plan to raise rates about 15 percent in each of the next three years.
“To say that a monumental rate increase would cause hardship is an understatement,” said Dianne Garrett of Whitehall. She was one of 25 speakers at a Public Utilities Commission of Ohio hearing on the rate plan. Roughly half had concerns about the cost, while others praised AEP’s charitable work or spoke about environmental issues. The commission will rule on the request later this year.
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bingo
Here is a (non-rhetorical) question : Is the economic benefit we got from relatively lower rates more or less than the current/future incurred costs of a rate hike?
I don’t know, but my first instinct is that Ohio benefitted more from cheaper energy costs during the boom years and suffered less than it might of during the post-00-9/11 crunch than it might have otherwise. OTOH, cost-induced efficiency gains might have been more.
A.
wow that’s a good question!
I think we benefited mightily from cheap energy! I also think that AEP has profited fairly even with our low rates.
I would not have been averse to a 3% rate hike to pay for environmental compliance. Seems fair, as that appears to be closer to the actual cost of these things. Rising fuel costs are another good reason for gradual fair rate increases.
Cost induced efficiency gains are going to be beneficial to society in the long run, but nothing good can come from dropping a sudden massive increase on consumers. I think the cost of doing that is going to be a huge blow to the economy.
Its hard to say if that’s higher or lower than the productivity gains from what we have had. I’m not even sure how to calculate that one. I’d love to see someone take a serious wack at calculating that.
Even (most) people advocating a carbon tax are sensible enough to account for a gradual phase-in to give customers time to implement these efficiency improvements.
I agree, 3 or 4% a year would be reasonable, even 5 or 6% a year considering they’re just coming out of a price freeze. 15% is just so crazy though. I’m guessing they’re asking for more than they want just so they might come close to the number they actually want (probably 10%).
I guess if they didn’t ask for a lot their shareholders would get pretty pissed though.
Tuesday, Nov 04, 2008
By Denise Yost
A major electric provider for Central Ohioans is planning on a rate increase, but a local group believes the hike is not justified and wants the proposal decreased by more than $1 billion.
The Ohio Consumers Council believes that the annual rate increases AEP is proposing for its three-year electric security plan are not justified. Two of the major sticking points are that AEP hasn’t proven it needs increases to its non-fuel generation and distribution rates and the deferred cost each year for three years is not necessary because fuel costs have been overestimated.
READ MORE
http://www.pbs.org/wgbh/pages/frontline/heat/view/
Energy should be much more expensive.
Wrong. Only 73% of the energy AEP produces comes from coal. The other 27% comes from natural gas, nuclear, wind and hydro.
Source: http://www.aep.com/about/powerplants/
Wrong. Along with most of the rest of the conjecture you’ve posted on the topic.
IGCC plant was announced in 2004. Which allows for cabron capture and sequestration.
source: http://www.aep.com/about/igcc/
As far as AEP fighting having to put pollution control equipment (FGD, SCR) on their power plants, simply untrue. The end result of the lawsuit was essentially a ruling stating AEP was required to do what they had already begun doing and planned to do anyway.
Look at the graph of SOX and NOX emissions leading UP to the 2007 ruling in the NSR case. Notice any trends? That’s becase AEP had been installing pollution control equipment long before the case went to any resolution and was doing so independent of any court order.
http://www.aep.com/environmental/performed/plantemissions/
As far as their current actions/plans ‘barely’ bringing them into compliance with current law, also not true in the least.
I’m not saying you can’t speak critically of a power giant, but at least get your facts straight.
http://www.pbs.org/wgbh/pages/frontline/heat/view/
Energy should be much more expensive.
Wrong. Only 73% of the energy AEP produces comes from coal. The other 27% comes from natural gas, nuclear, wind and hydro.
Source: http://www.aep.com/about/powerplants/ The thing is though, that is capacity not generation. They don’t turn on the the 16% natural gas unless there is peak demand. Nearly 90% of their generation comes from coal.
That’s a valid point.
Still not quite “nothing but coal.”
That’s a valid point.
Still not quite “nothing but coal.” Well of course that number is hyperbole but I don’t think anyone thought that I was talking literally. Comparatively to other nations and companies though?
That’s a valid point.
Still not quite “nothing but coal.” Well of course that number is hyperbole but I don’t think anyone thought that I was talking literally. Comparatively to other nations and companies though?
Definitely.
That’s a valid point.
Still not quite “nothing but coal.” Well of course that number is hyperbole but I don’t think anyone thought that I was talking literally. Comparatively to other nations and companies though?
There are other nations that run largely on nuclear. I can’t think of one that has actually substantially replaced fossil fuels with the darlings of the green lobby (though why the green lobby is so anti-nuclear, I have no idea).
Some of them have been saying that their opposition to nuclear power was perhaps wrong.
For those of you who are anti-coal,
“Both organizations are asking supporters to protest coal companies, coal burning utility companies and banks that finance coal companies throughout the nation during this two day period,”
If you go to their websites, AEP is targeted for an ‘action’ this week
Some of them have been saying that their opposition to nuclear power was perhaps wrong.
For those of you who are anti-coal,
“Both organizations are asking supporters to protest coal companies, coal burning utility companies and banks that finance coal companies throughout the nation during this two day period,”
If you go to their websites, AEP is targeted for an ‘action’ this week
Um…
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/07-13-2006/0004396287&EDATE=
http://www.aep.com/newsroom/newsreleases/?id=816
Those things are nice, Merc, but I’d prefer if we could discontinue the practice of destroying Appalachia one hilltop at a time, closer to home.
I’m not part of the “green lobby”, but I am against nuclear because it is fucking dangerous and the waste lasts so long that we have to put pictograph signs on the storage sites… just in case people in the future don’t know our, or any language.
We need to get realistic and responsible. I do not want to jump out of the frying pan and into the fire.
Um…
I’m not anti-AEP. Quite the opposite.
Now please, everyone;
Go back to talking about how much you don’t like rate hikes and at the same time say you are in favor of alternative energy (wind solar) that are proven to be more expensive sources of energy.
Don’t mind rate hikes. I’ll just use less. Thx
I’m not part of the “green lobby”, but I am against nuclear because it is fucking dangerous and the waste lasts so long that we have to put pictograph signs on the storage sites… just in case people in the future don’t know our, or any language.
We need to get realistic and responsible. I do not want to jump out of the frying pan and into the fire. I’d agree but if you are the Rainforest Action Network, it might be perilous to your goals to campaign against the company that is conserving vast amounts of rainforest. Most of the money to do this is coming from “carbon sequestration†and the Chicago Climate Exchange. It just seemed ironic that the Rainforest Action Network was the one promoting the protest.
I guess I just don’t see either of these groups being effective at promoting their goals. I’ll stick with the Nature Conservancy, The Ohio Environmental Council, Green Columbus and Earth First!.
Edit: and Simply Living
Well, “saving” other parts of the world isn’t all bad, but it is also an effective way to divert attention away from what’s going on in our own backyard. In 50 years, this will all look like a charming charade.
I finally got around to opening my electric bill this month.
After implementing some VERY simple changes to reduce electric use in our already very low use apartment I have confirmed (by actual meter reading) I was able to cut out about 100 kwh* from our monthly bill for a savings of about $10, or almost 20%. No lifestyle or functionality changes were made to do this. We have not inconvenienced ourselves in any way.
I will take myself to lunch tomorrow to celebrate my personal AEP rate cut.
*actually 130 kwh lower than 12 month average, 110kwh less than last month, and 120 kwh less than november 07 bill for comparative purposes.
I liked this article
http://www.dispatch.com/live/content/local_news/stories/2008/11/18/offgrid.ART_ART_11-18-08_B1_JQBU2RF.html?sid=101
Instead, they bought solar panels, which charge the batteries that power their appliances and compact fluorescent light bulbs. Natural gas heats the house and water, and also runs their stove and refrigerator.
“You have control of it in your hands,” Mr. Ogle said. “You’re not at the mercy of AEP.”
After implementing some VERY simple changes to reduce electric use in our already very low use apartment I have confirmed (by actual meter reading) I was able to cut out about 100 kwh* from our monthly bill for a savings of about $10, or almost 20%. No lifestyle or functionality changes were made to do this. We have not inconvenienced ourselves in any way.
I will take myself to lunch tomorrow to celebrate my personal AEP rate cut.
*actually 130 kwh lower than 12 month average, 110kwh less than last month, and 120 kwh less than november 07 bill for comparative purposes. Nice job Mike. My refrigerator is a hog, but other than that think I have too. Everything with standby power is on a surge protector that I turn off when not in use. All of my light have been replaced with CFLs. I pulled my drier vent so it blows hot air in my basement instead of outside. I just blew another 10 inches of insulation in the attic. Turned my thermostat down to 64 (I turn it up if I’m going to have guest but I am always hot.) Hopefully I can afford to get some solar panels sometime soon (not before I get some new Mt. Airy counters.) Was disappointed to see Ohio do away with the personal home solar grant.
Edit: Oh, I’ve weatherproofed too but still have old windows upstairs.