Dr. Mark J. Matney
Delegate James W. “Will” Morefield commented on the issue of rising utility bills –
“For the last several days, I have answered calls from hundreds of constituents desperately seeking help with their utility bills. Most of the people I spoke with, especially those only receiving social security benefits, are unable to afford to pay for the basic necessities of survival because their electric bill is outrageous. Inflation has already directly resulted in the rise of consumer prices. Something must be done to provide relief for customers of Appalachian Power Company.
Appalachian Power Company states the majority of the cost for conducting business, compared to other utility companies in Virginia, is higher due to fuel and transmission costs. The Virginia State Corporation Commission regulates Appalachian Power and authorizes a rate the company can charge their customers. Upon further investigation, I learned the average Appalachian Power Company rate for residential customers is $172.79 per 1,000 kWh, compared to Dominion Energy’s rate for residential customers which is $134.75 – $139.16 per 1,000 kWh, and Bristol Virginia Utility (BVU) residential customer rate which is $115.35 per 1,000 kWh.
Appalachian Power Company’s total annual compensation package from 2019 through 2022 for their CEO alone is estimated to be $59.6 million dollars. There is no justification for Appalachian Power Company to be guaranteed business by the State Corporation Commission while consecutively compensating their top executives tens of millions of dollars. The General Assembly must take aggressive action to examine this serious issue in order to allow relief for their customers.
A small modular nuclear reactor (SMR) was proposed to be built recently in Southwest Virginia. This would increase the average Appalachian Power Company customer utility bill by an estimated $1.83 per month. As of last week, I am now opposed to an SMR being built by Appalachian Power Company in Southwest Virginia.
Regardless of whether or not an SMR is placed in Southwest Virginia, an additional $1.83 per month on a power bill pales in comparison to the savings customers would receive if tens of millions of dollars in excessive executive compensation were reduced and passed on to the customer in the form of reduced utility rates. Currently, I am researching this issue to determine the authority the General Assembly has to directly or creatively address Appalachian Power Company’s excessive executive compensation packages.”
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