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Northern Neck co-op seeks power rate increase

Northern Neck Electric Cooperative seeks rate increase due to rising costs

By COREY BYERS

Date published: 10/10/2008

The Northern Neck Electric Cooperative is seeking state permission to raise its rates to offset the rising cost of providing power.

The proposal filed with the State Corporation Commission would push the average monthly bill to $140.21--an increase of $8.33.

The cooperative serves 18,000 customers in portions of Westmoreland, King George and Stafford counties, as well as Lancaster, Northumberland and Richmond counties.

In a memorandum to King George County officials, the cooperative cited rising fuel cost as a major reason for the request. The cost of gasoline has jumped 167 percent per gallon since 2002, the memo said.

"This cost multiplies significantly since NNEC drives approximately 632,000 miles per year in co-op vehicles," the company wrote.

Other factors include the rising cost of transformers and power-line poles.

Most of the proposed increase comes in the form of an access charge on monthly bills, rather than usage rates.

The memo noted that the cooperative had not had a rate increase since 1992. This increase would bring in an additional $2.2 million in revenue.

Co-op spokesman Andrew Packett said NNEC will have a hearing for increases with the commission on Dec. 16.

Marty Mothershead, NNEC's vice president of finance and customer service, said if the SCC doesn't rule on the increase at that time, the cooperative would put a refundable increase into effect in January.

Corey Byers: 540/735-1976
Email: cbyers@freelancestar.com

WANT TO COMMENT? FULL APPLICATION Copies of the Northern Neck Electrical Cooperative's application are available for review at its business office, 85 St. Johns St., Warsaw, and in the State Corporation Commission's document control center in the first floor of the Tyler Building, 1300 East Main St., Richmond. Unofficial copies also can be downloaded from the SCC's Web site at scc .virginia.gov/case. RADIO BROADCAST A pre-recorded radio broadcast explaining the rate increases is scheduled to air Nov. 2 at 8:30 p.m. on WFLS--93.3 FM. A public hearing is scheduled for 9:45 a.m. Dec. 16 at the commission's second-floor courtroom in the Tyler Building. Mail written comments by Dec. 9 to Joel H. Peck, Clerk of the State Corporation Commission c/o Document Control Center, Box 2118, Richmond, 23218-2118. Those interested in speaking at the Dec. 16, hearing should file a notice of participation to the same address. Refer to case #PUE-2008-00076 on all correspondence. For both written comments and to sign up to speak, please include 15 copies with the original request.

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Date published: 10/10/2008