If you haven’t opened your latest power bill, brace yourself. It’s a doozie. Businesses, homeowners and renters across Southwest Virginia got hit with Appalachian Power’s latest rate increase, leaving folks with outrageously high power bills.
It’s been widely reported that even the most conservative of power users saw huge increases, some by hundreds of dollars. A particularly impressive example is the Martinsville-Henry County SPCA: it received a bill totaling more than $4,700, a 52% increase from its January 2022 statement.
So what caused such a drastic increase? An AEP spokeswoman recently explained to the Henry County Board of Supervisors that the answer is “very complicated.”
“The utility industry is the most difficult job I’ve ever had and understanding rates is extremely difficult,” the spokeswoman said.
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I’m here to tell you that’s a scam. As the former chief of staff to Del. Sam Rasoul, I’m all too familiar with the schemes public utility companies use to line their pockets. Growing up in a working-class family that struggled to make ends meet made me skeptical of monopolies that game the system and rig it against ratepayers. That’s exactly what’s happening right now in Southwest Virginia.
AEP, the parent company of Appalachian Power Co., blames the bigger bills on two factors: rate increases and a particularly cold December.
The latter isn’t a new tactic. It’s just another chapter in AEP’s handbook of manufacturing a “crisis” to rationalize higher bills. It’s particularly cruel to do this in the middle of winter at a time when eggs cost $6 a dozen. Hardworking families and seniors on fixed incomes shouldn’t have to choose between heating their home for an extra $200 a month or putting food on the table.
To break down the rate increases, you need a little background. A groundbreaking 2020 Clean Virginia report uncovered how public utility companies continually overcharge ratepayers by taking advantage of lackluster oversight by the State Corporation Commission and little chance of regulation by the General Assembly.
Essentially, the process runs like this: overcharging ratepayers, the electric utilities manufacture a crisis, they insist the charges are necessary, they lobby the General Assembly through massive campaign contributions ($12 million in the last decade from Dominion Energy and Appalachian Power went to both Republicans and Democrats), and then they keep the overcharges. The SCC reviews the increase and decides if the increase was warranted or if customers should get a refund. But that only happens after folks get hit with these ridiculous bills.
Here’s where my frustration really boils over: These rates aren’t set in stone. The SCC or General Assembly could halt the increases and direct AEP to dip into its rainy-day funds (which it presumably has).
What makes all this especially nefarious is these practices deliberately and strategically target middle-class and working-class families.
It’s time to stop bleeding our hardworking families. Legislators and regulators can do something about this and they have an obligation to follow through. In the meantime, here are a few links to help you take action:
A complaint can be filed with the SCC at scc.virginia.gov/pages/Electric-Company-Complaint-Form. This form allows consumers to submit complaints and attach documents as proof. To contact the SCC Public Utility Regulation Division call 804-371-9611 or email UtilityReg@scc.virginia.gov.
AEP customers in need of assistance with paying their bills can apply for AEP’s Neighbor to Neighbor program, which provides aid to qualifying customers through the Dollar Energy Fund. For more information, customers can find an agent to find out if they qualify at hardshiptools.org/AgencyFinder.aspx; or call 800-683-7036; or send a letter to Dollar Energy Fund at P.O. Box 42329, Pittsburgh, PA 15203-0329.
The Virginia Poverty Law Center offers resources for utility fairness. Visit vplc.org/resources or call their utility hotline at 804-313-9363.