The WV Senate added a little bonus to the AEP bailout bond bill at the end of the 2012 legislative session. They changed the wording of the bill to allow AEP to add even more costs to its special bailout bond issue. AEP is making sure they take full advantage of the Legislature’s gift. Too bad if you are an Appalachian Power rate payer.
When they introduced their bailout bill, APCo lobbyists said they only wanted to stick rate payers for the $350 million they paid for high priced coal in 2008. Keryn has the news that APCo has just filed its new rate case at the WV PSC and, guess what? APCo wants to roll a total of $391.8 million into their bailout bonds which APCo customers will be paying for years to come.
Looks like buy now, pay later has now come to the WV PSC by way of the Legislature. What if demand continues to fall and APCo’s coal costs continue to rise? APCo customers will face more rate increases on top of the 10 years or more on the bailout bonds.
We saw it coming. Give APCo a small loophole, and they’ll drive a truck through it. APCo rate payers should thank their local legislators. Chances are very good that your legislator voted to let APCo screw you.