023-07BOARD OF SUPERVISORS
RESOLUTION OPPOSING ALLEGHENY POWER'S
APPLICATION FOR A RATE INCREASE
WHEREAS, The Potomac Edison Company, d/b /a Allegheny Energy
( "Allegheny ") has filed, with the State Corporation Commission of Virginia, an
application to raise power rates referenced as PUE- 2007 -0085; and
WHEREAS, Allegheny is the provider of power to our locality; and
WHEREAS, Allegheny's application seeks to increase the power rates of the
residents and businesses throughout our locality by approximately $57 million
dollars, which translates into an increase of 27% in monthly power bills for houses
using 1000 kilowatt hours per month; and
WHEREAS, Allegheny had previously filed, with the State Corporation
Commission of Virginia, an application, referenced at PUE 2007 -0026, to raise
power rates by approximately $85 million; however, said application was
ultimately denied by the State Corporation Commission; and
WHEREAS, Allegheny's new application again seeks to circumvent an
agreement Allegheny voluntarily entered into with the State Corporation
Commission in 2000 whereby Allegheny sold all generating units to a sister
company in exchange for terminating the ability to increase power rates based on
the price of fuel for those generating units; and
WHEREAS, approval of the Allegheny Application would jeopardize our local
economy, which is driven by an affordable cost of living together with the ability
to expand or attract local businesses; and
WHEREAS, this locality's tax rates have been established to meet the projected
budgeted expenditures and the granting of the Allegheny Application would
require either cuts in services or increases in taxes in order to operate our
government and deliver services to our citizens; and
WHEREAS, there exists no justification to permit Allegheny to void the 2000
agreement at the expense of the citizens and businesses that comprise their
customer base.
NOW, THEREFORE, BE IT RESOLVED, that the Frederick County Board of
_ Supervisors through this resolution expresses its profound opposition to the
Allegheny Application, requests the SCC deny the Application and require
Allegheny to honor the Agreement it voluntarily entered in 2000.
ADOPTED this 14 cf, day of November, 2007.
VOTE:
Richard C. Shickle Aye Gene E. Fisher aye
Bill M. Ewing Aye Philip A. Lemieux Aye
Charles S. DeHaven Aye Barbara E. Van Osten Aye
Gary W. Dove eve
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=`Jq R. ey, Jr., Clerk
Resolution No.: 023 -07 ./
� COUNTY of FREDERICIK
,Zahn R. Reley, ,Ir.
County Administrator
540/665 -5666
Fax 540/667 -0370
E -mail:
�n ey co.tre enc .va.us
TO: Board of Supervisors l j
r'•�/�
FROM: John R. Riley, Jr., County Administra�r �'
SUBJECT: Resolution Opposing Allegheny Energy's Application to Raise Power Rates
DATE: November 5, 2007
You will find attached a resolution for the Board's consideration and action. As you are
aware, the Frederick County Industrial Development Authority continues to facilitate the
local effort to oppose Allegheny Energy's application before the State Corporation
Commission to increase monthly power rates by 27 %. On behalf of eighteen industrial
users, the Authority hired FirstChoice Consulting of Richmond, VA, to represent those
users' interests in this matter. FirstChoice recommends this Board and the other
governing bodies within the Allegheny service area state. their opposition via letter or
resolution in order that it might be made part of the State Corporation Commission's
record in this matter. The deadline for submitting letters and other documents to the
Commission for consideration as part of this hearing is November 16, 2007.
Should you have any questions or need additional information, please do not hesitate to
contact me.
JRR/j et
Attachment
107 North Kent Street Winchester, Virginia 22601 -5000