CHARLESTON, W.Va., September 2, 2005 – Appalachian Power and Wheeling Power, both subsidiaries of American Electric Power, today distributed to newspapers in their service areas in West Virginia a public notice about the rate increases which they jointly filed with the Public Service Commission of West Virginia a week ago, on August 26, 2005, for publication as a Class II legal advertisement. The public notice is designed to give customers and other interested persons information about the filed tariff, which contains increased rates, tolls and charges for furnishing electric service to approximately 474,965 customers in cities, towns, villages, unincorporated municipalities, and rural areas in their service territories in the Counties of Boone, Brooke, Cabell, Clay, Fayette, Greenbrier, Jackson, Kanawha, Lincoln, Logan, Marshall, Mason, McDowell, Mercer, Mingo, Monroe, Nicholas, Ohio, Putnam, Raleigh, Roane, Summers, Wayne, and Wyoming.
The initial proposed increased rates and charges will become effective September 25, 2005 unless otherwise ordered by the Public Service Commission, and will produce approximately $82,194,935 annually in additional revenue, an increase of 10.26%. The average monthly bill for the various classes of customers will be changed as follows:
|
($) INCREASE
|
(%) INCREASE
|
Residential
|
11.54
|
17.54
|
Commercial
|
13.57
|
5.41
|
Industrial
|
470.65
|
5.44
|
Resale
|
N/A
|
N/A
|
Other
|
20.64
|
6.33
|
In addition to the initial rate increases, four stages of incremental surcharges are proposed in the tariff. Those surcharges are proposed to become effective on the following dates, produce the following approximate amounts of annual revenue, the following overall percentage increases, and the following increases (expressed in terms of dollars and percentages) for the average monthly bill for the various customer classes:
1. The first incremental surcharge is proposed to become effective on
July 1, 2006 (or the same date as the initial increases) and will produce approximately $9,369,789 annually in additional revenue, an increase of 1.06%. The average monthly bills for the various class of customers will be changed as follows:
|
($) INCREASE
|
(%) INCREASE
|
Residential
|
0.78
|
1.01
|
Commercial
|
2.65
|
1.00
|
Industrial
|
107.73
|
1.18
|
Resale
|
N/A
|
N/A
|
Other
|
0.54
|
0.16
|
2. The second incremental surcharge is proposed to become effective on
January 1, 2007 and will produce approximately $43,537,296 annually in additional revenue, an increase of 4.89%. The average monthly bills for the various class of customers will be changed as follows:
|
($) INCREASE
|
(%) INCREASE
|
Residential
|
3.62
|
4.67
|
Commercial
|
12.31
|
4.61
|
Industrial
|
500.55
|
5.43
|
Resale
|
N/A
|
N/A
|
Other
|
2.52
|
0.73
|
3. The third incremental surcharge is proposed to become effective on
January 1, 2008 and will produce approximately $9,552,202 annually in additional revenue, an increase of 1.02%. The average monthly bills for the various class of customers will be changed as follows:
|
($) INCREASE
|
(%) INCREASE
|
Residential
|
0.80
|
0.98
|
Commercial
|
2.70
|
0.97
|
Industrial
|
109.82
|
1.13
|
Resale
|
N/A
|
N/A
|
Other
|
0.55
|
0.16
|
4. The fourth incremental surcharge is proposed to become effective on
January 1, 2009 and will produce approximately $38,205,164 annually in additional revenue, an increase of 4.05%. The average monthly bills for the various class of customers will be changed as follows:
|
($) INCREASE
|
(%) INCREASE
|
Residential
|
3.18
|
3.87
|
Commercial
|
10.81
|
3.83
|
Industrial
|
439.25
|
4.47
|
Resale
|
N/A
|
N/A
|
Other
|
2.21
|
0.63
|
Appalachian Power Company and Wheeling Power Company have no resale customers in the State of
West Virginia. The increases shown are based on averages of all customers in the indicated class. Individual customers may receive increases that are greater or less than average. Furthermore, the requested rates and charges are only a proposal and are subject to change (increases or decreases) by the Public Service Commission in its review of this filing. Any increase in rates and charges will not become effective until authorized and approved by the Public Service Commission. (If a hearing is scheduled, notice will be given of the time and place of hearing.)
Anyone desiring to protest or intervene should file a written protest or petition to intervene prior to
September 25, 2005, unless otherwise modified by Commission order. Failure to timely protest or intervene can affect your rights to protest any rate increases and to participate in future proceedings. All protests or requests to intervene should briefly state the reason for the protest or intervention. Requests to intervene must comply with the Commission’s rules on intervention. All protests and interventions should be addressed to the Executive Secretary, Public Service Commission of West Virginia,
P.O. Box 812, Charleston, West Virginia 25323.
A complete copy of this tariff, as well as a representative of the Company to provide any information requested concerning it, is available to all customers, prospective customers, or their agents at the following office of the Companies:
707 Virginia Street, East
Charleston, WV 25301
In addition, a copy of this tariff is posted on the Company’s website and can be found at
www.apcocustomer.com. Any customer wishing to receive a reduced-size copy of the tariff can telephone toll-free 877-237-2886, and request such a copy and provide the necessary mailing information and a copy will be mailed to the customer.
A copy of this tariff is also available for public inspection at the office of the Executive Secretary of the PUBLIC SERVICE COMMISSION at
201 Brooks Street, Charleston, West Virginia.
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This report made by AEP and certain of its subsidiaries contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its registrant subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: electric load and customer growth; weather conditions, including storms; available sources and costs of, and transportation for, fuels and the creditworthiness of fuel suppliers and transporters; availability of generating capacity and the performance of AEP’s generating plants; the ability to recover regulatory assets and stranded costs in connection with deregulation; the ability to recover increases in fuel and other energy costs through regulated or competitive electric rates; new legislation, litigation and government regulation including requirements for reduced emissions of sulfur, nitrogen, mercury, carbon and other substances; timing and resolution of pending and future rate cases, negotiations and other regulatory decisions (including rate or other recovery for new investments, transmission service and environmental compliance);resolution of litigation (including pending Clean Air Act enforcement actions and disputes arising from the bankruptcy of Enron Corp.); AEP´s ability to constrain its operation and maintenance costs; AEP´s ability to sell assets at acceptable prices and on other acceptable terms, including rights to share in earnings derived from the assets subsequent to their sale; the economic climate and growth in AEP´s service territory and changes in market demand and demographic patterns; inflationary trends; AEP´s ability to develop and execute a strategy based on a view regarding prices of electricity, natural gas, and other energy-related commodities; changes in the creditworthiness and number of participants in the energy trading market; changes in the financial markets, particularly those affecting the availability of capital and AEP´s ability to refinance existing debt at attractive rates; actions of rating agencies, including changes in the ratings of debt; volatility and changes in markets for electricity, natural gas, and other energy-related commodities; changes in utility regulation, including membership and integration into regional transmission structures; accounting pronouncements periodically issued by accounting standard-setting bodies; the performance of AEP´s pension and other postretirement benefit plans; prices for power that AEP generates and sells at wholesale; changes in technology and other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes and other catastrophic events.
Jeri Matheney
(304) 348-4130
jhmatheney@aep.com