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Name:
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waterph
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Subject:
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Higher Electricity Rates
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Date:
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10/7/2008 9:05:14 AM
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Seems that APC now wants another rate increase and a new payment late fee.. The one announced a few weeks ago was supposeddly for higher coal prices. The following article appeared in the Birmingham News this AM. I'm sure that APC is pleased that the focus on this forum is on the Presidental election and not on water level and electrical rates.
"Alabama Power seeks another rate increase - Wants to raise base charge, assess late fees" Tuesday, October 07, 2008 KIM CHANDLER, News staff writer
MONTGOMERY - Alabama Power Co. is seeking to raise its base charge and start collecting late fees, in addition to a rate increase already proposed for higher fuel costs.
Combined, the charges would have the typical household paying about $15 more each month.
The power giant will propose the increases this morning to the Pubic Service Commission, Alabama Power spokesman Michael Sznajderman said.
"We are experiencing significant increases in our costs across the board, not only in fuel," Alabama Power spokesman Michael Sznajderman said.
The power company is seeking to raise the base charge residential customers pay from $8.91 to $15 a month. The base charge is a flat rate for connecting an Alabama Power account.
In addition, the company is proposing its first ever late fee of $2 or 1.5 percent of a late bill, whichever is higher.
Sznajderman said the increases, first filed with the Public Service Commission a few weeks ago, could be voted on today.
The PSC is already scheduled to vote on increased fuel charges that Alabama Power has proposed. A typical household that uses 1,000 kilowatt hours monthly would pay $9.30 more each month if the fuel charge increase is approved.
The AARP of Alabama and others told PSC commissioners last month that many senior citizens and low-income Alabamians would struggle to pay the increased fuel charge.
Some low-income Alabamians on Medicaid or Supplemental Security Income are exempt from the power company's base charge and thus would not be affected by that increase, Sznajderman said. People have to apply for the exemption with Alabama Power.
Sznajderman said that, unlike most companies, Alabama Power has never charged a late fee. About 3 million monthly Alabama Power bills are paid late every year, he said.
Electric rates are reevaluated at the end of each year. Sznajderman said if the increases are approved today, that could reduce the likelihood of a general rate increase at the end of the year.
"We work very hard to keep our costs are down. The price of power from Alabama Power remains very competitive compared to other utilities. But the fact of the matter is we have to deal with these rising costs and that is why we have proposed these changes," Sznajderman said.
Alabama Power is also proposing rate increases for their commercial and industrial customers. Commercial rates would rise about 4.7 percent, while industrial rates would rise .21 percent.
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