Power Costs Could Soon Go Up
by Shanisty Myers
CBS 42 News
2008-08-27 20:04:47.0
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It could soon cost you more to keep your home cool.
Alabama Power is asking the public service commission to raise rates for residential customers who use 1,000 kilowatt hours a month by more than $16.
The company says the more than a 14% hike would help cover coal and natural gas costs.
Spokesperson, Pat Wylie says, "What we're finding, there has been a dramatic increase in coal and natural gas. Alabama Power paid about 16% more last year for coal than we did the year before. For the average customer its going to be about $16.45 cents more."
Olivia Quijano is a customer who wants to know where the extra cash will go.
Quijano says, "I never want to pay anything more than I have to, but my first thought is that I hope they are going to build something or increase their ability to provide electricity. Because this economy prices are going up, I hope there is a reason for it."
Most people have seen the Alabama Power billboards, but Wylie says if Alabama Power was to cut some of its advertising budget, the average customer would only save a few pennies.
Wylie says, "We use advertising as an efficient message with our customers. Advertising is a method we use to communicate with our customers and it means very little on customers bills."
Alabama Power's budget divides into different categories, unlike advertising, they won't see a dime of this recent increase.
Wylie says, "It's important to note that Alabama Power doesn't make any profit on fuel. We are not aloud to earn a return on it."
With only one power company, customers will have to pay the increase, and for Quijano, it's worth it.
"If that means I'm going to have 16 dollars more security and more electricity, that's worth while to me," she says.
The public hearing with the PSC is set for September 23rd, if the rate increase is approved, it will take effect on October 9th.
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