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| Name: |
waterph
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| Subject: |
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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| Name: |
Eric
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| Subject: |
Higher Electricity Rates
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Date:
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10/7/2008 6:03:08 PM
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Any news on the new lake level modelling required by FERC yet?
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| Name: |
waterph
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| Subject: |
Higher Electricity Rates
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Date:
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10/7/2008 7:35:38 PM
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I don't have a status but maybe "keyman" can respond to your question.
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| Name: |
waterph
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| Subject: |
Rate Increases Approved by PS
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Date:
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10/8/2008 8:24:42 AM
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Note the following article this AM in the Birmingham paper. Why require utilities to manage cost when they have a captive market and a PSC that will guarantee their profits. What control does the citizenry have over corporate America? Any similarities to AIG, Lehman Brothers, etc.?
PSC approves Alabama Power rate increase
Typical bill will go up $15 a monthWednesday, October 08, 2008 KIM CHANDLERNews staff writer
MONTGOMERY - The Public Service Commission on Tuesday unanimously approved two rate increases for Alabama Power Co. that will increase the typical residential bill by more than $15 each month.
The commission voted 3-0 to approve both an increase in fuel charges that Alabama Power passes along to customers and an increase in the flat monthly fee that customers pay to receive service. The regulatory board also approved the power company's first late fee on unpaid bills.
In return, Alabama Power officials agreed not to seek a general rate increase for 2009.
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"While we don't like this, it's a necessary evil," said Commissioner Susan Parker, who described the vote as one of the toughest decisions she's faced on the board.
Alabama Power spokesman Michael Sznajderman said the company sought the rate increases to deal with rising prices on commodities ranging from coal to copper and aluminum.
"We've been grappling with a significant increase in our costs," Sznajderman said.
The median monthly use by residential customers is 1,000 kilowatt hours - half of customers use more than that and half use less. For that consumer, the bill will rise from $112.90 to $127.97, including taxes, when all the changes take effect, Sznajderman said.
Rates will rise first this month and then again in January. Beginning Thursday, fuel charge rates will rise 8.24 percent for residential customers, 9 percent for commercial businesses and 14 percent for industries because of the fuel charge increase. A homeowner who uses 1,000 kilowatt hours each month will pay an extra $9.30 each month under this increase.
The commission also approved an increase in the monthly base charge that residential consumers pay to have service with Alabama Power. That charge will rise from $8.91 to $14.50 a month, beginning Jan. 1.
In addition, the company is proposing its first late fee of $2 or 1.5 percent of a late bill, whichever is higher.
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| Name: |
waterph
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| Subject: |
APC Advertising Change
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Date:
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10/8/2008 8:29:32 AM
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Interesting article this AM from the Birmingham News.
Alabama Power plucking bird ads
Wednesday, October 08, 2008 KIM CHANDLERNews Staff writer
MONTGOMERY - Ben and Mickey, the plucky animated bird duo, are being booted off their high wire as the advertising faces of Alabama Power Co.
Alabama Power is phasing out the Mickey and Ben ads and replacing them with ads featuring company employees talking about how customers can save on energy costs, Alabama Power spokesman Michael Sznajderman said Tuesday.
The feathered friends have been perched on cartoon power lines in Alabama Power ads since 2004. The new campaign will have a more serious tone, Sznajderman said.
"Our whole new campaign is focused on energy efficiency," he said.
The change was already planned, but members of the Public Service Commission told company officials Tuesday that they often hear complaints from consumers who are irked that Alabama Power is advertising while asking for a rate increase.
"The one thing I hear is downright aggravation about the advertising. I think it's time for the birds to go," Commissioner Susan Parker said.
"And we don't want Louie Electric back either," Commissioner Jan Cook said of the animated lightning bug in the company's previous campaign.
Mike Crosswhite, Alabama Power's vice president for external affairs, said the company heard the message.
Alabama Power spends about $9 million on advertising each year and about half of that comes from rates paid by industrial and residential customers, Sznajderman said. That amounts to about a $1 a year for residential customers, he said.
The other half of Alabama Power's advertising budget come from appliance sales and other operations, he said.
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