Bluefield joins AEP rate hike request protest

Jul. 13—BLUEFIELD — The Bluefield City Board is sending a "letter of protest" to the state Public Service Commission regarding a proposed rate hike by Appalachian Electric Power (AEP).

City Attorney Anthony Heltzel said the content of the letter emphasizes how the "significant rate hike" would "severely affect" many residents of Bluefield.

If approved by the PSC, the rate hike request would add more than $18 a month to average residential power bills.

Heltzel said the letter urges the PSC to take into consideration the demographics and socio-economic conditions locally before making a decision.

Mayor Ron Martin asked if the letter of protest is the most effective means of having an impact on the PSC decision.

Heltzel said the letter is the best route to take to "get it into the hands of the people who make the decision."

He also said Bluefield has now joined other municipalities involved in the protest, including Mercer County, Princeton and McDowell County.

"I believe this will be effective in showing ... this is detrimental to our community," Heltzel said, and, based on the volume of other voices protesting, "I think it has the potential for at least delaying" the proposed rate hike.

In April, Appalachian Power submitted an Expanded Net Energy Cost (ENEC) request for a $297 million upward adjustment in the ENEC rate to the state PSC. The ENEC reimburses the company on a dollar-for-dollar basis for coal and natural gas to fuel power plants and for purchased power.

If approved as filed, the adjustment would add $18.41 to monthly bills beginning Sept. 1.

Heltzel also pointed to a recent meeting on the issue at the Mercer County Courthouse, a public comment hearing conducted by members of the PSC.

At that meeting, area lawmakers joined citizens to speak out against the rate hike.

Delegate Doug Smith, R-Mercer, addressed the panel about his concerns.

"First, I realize that rate hikes are required in every utility and I fully understand they are needed for continued service; however, they should be reasonable rate hikes," Smith said. "The proposed increase of 12 percent is unprecedented. It is the second requested increase in one year. On top of rate increases by water of 8 percent already this year, it is unfair to the people of West Virginia who are struggling middle class, low income, and elderly on fixed incomes. I see nothing of corporate pay raises being frozen or cut to offset the quoted need for revenue."

Charlotte Lane, chairman of the Public Service Commission of West Virginia, said after the hearing that the PSC will conduct an evidentiary hearing Aug. 2 in Charleston. The address is 201 Brook Street and the public is invited to attend. The decision about whether to grant the requested increase will not be made then. It is scheduled to be made by Sept. 1.

In other action Tuesday, members of the City Board:

—Approved Mitchell Stadium usage agreements for this football season for Bluefield University, Bluefield State University, Mercer County Board of Education and Tazewell County Public Schools.

City Treasurer Danny Dillow said the agreements are on the same terms as last year with $50,000 per high school (Bluefield and Graham) and $85,000 for each university.

—Recognized contributions to the community by Jeff Disibbio, Lecia Smith and Kyle Hurt.

Disibbio is president of the Chamber of Commerce of the Two Virginias and was thanked by Heltzel for his services in promoting the area as well as the recent Cole Chevy Mountain Festival.

Smith is a long-term community contributor who helped on the drive to rebuild and renovate the Yakity-Yak Playground at City Park and co-chaired to move the save the Ridge Runner railroad at the park.

Hurt, Tazewell County Industrial Development Authority Chairman, has been instrumental in organizing the Cole Chevy Mountain Festival for many years.

"These people don't just donate money, they donate their time," Heltzel said. "We appreciate all you do for the city and all you do for this community."

—Heard from Jim Spencer, director of the Bluefield Economic Development Authority, that a grant application has been submitted for $400,000 to build a new industrial access road at Exit 1 off John Nash Boulevard beside the Bluefield Area Transit Headquarters.

Spencer said the County Commission recently voted to support the grant.

"It is a new Wild Turkey Road," he said of old road nearby that will be paved and provide more direct access directly from John Nash Boulevard.

Spencer said the road will tie in with the Omnis Building Technologies parking lot as it runs behind the BAT facility.

Site work for Omnis is almost complete and work on the structure for the $40 million, 35,000-sq.-ft. manufacturing facility should start by September. The company, based in California, manufactures houses that are energy-efficient, pre-engineered systems made up of Concrete Insulated Building Units (CIBU) and are shipped and then assembled on-site to make pre-designed homes.

— Contact Charles Boothe at cboothe@bdtonline.com

Contact Charles Boothe at cboothe@bdtonline.com

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