Rate hearing

Residents slam state PSC, Mountaineer Gas at hearing

By Amelia A. Pridemore

Nearly 60 people came to a state Public Service Commission hearing Wednesday night in Beckley with their tempers flaring.

They lashed out at both the PSC and Mountaineer Gas, likening them to King George III, “crooks” and AIG executives and saying their practices will make them choose between a warm home or feeding their families.

Mountaineer Gas has asked the PSC to approve a 6.6 percent rate hike. PSC officials said the requested increase stems from lower sales and the company still having to pay for what it has bought and is storing.

Cecelia Jarrell, an administrative law judge for the PSC, said the agency’s decision deadline is March 29, 2010.

Matt Davis, an attorney representing Mountaineer Gas, said the company’s request involves operational and maintenance costs, recovery and return on investments, and the ability to have safe and reliable equipment.

The increase does not involve the cost of gas, Davis said. He noted Mountaineer Gas has asked the PSC, in an entirely different procedure, to reduce rates in that area because overall gas prices have dropped. Mountaineer customers, he said, should see a “significant” decrease in the coming months.

Lee N. Hart of Beckley called the proposed increase “obscene” and “illogical.” He noted the present economic downturn and how the company’s customers are already having to scale back their budgets.

“This is legalized stealing from customers,” he said.

Delegate Rick Moye, D-Raleigh, asked PSC members in the room to raise their hands and saw none.

“Maybe they didn’t get the notice,” he said. He also noted the three appointed commissioners make more than $80,000 per year.

Moye asked how many in the crowd received a 6.6 percent wage or government assistance increase and wondered why the proposed rate reduction had not yet gone into effect. Like others, he said PSC members should be elected and held directly accountable to the people they serve. He noted customers are almost always forced to pay what utility companies charge.

Other business owners like him, Moye said, have to cut costs during harder economic times to keep their cash-strapped customers.

“I know you have to make a profit, but you have to be fair,” he said. “I would lose customers if I were not fair. Maybe I got into the wrong business.”

Paul Eckels of Daniels wondered why Mountaineer Gas was increasing rates since demand was low and supply was high.

“It’s a basic law in economics that if you have an over-supply your price goes down a bit,” he said.

Loretta Crist of Glen Jean criticized both Mountaineer Gas and the PSC. The latter, she said, is not protecting customers. Meanwhile, customers are suffering because purchased gas has not been sold.

“This is another Chrysler, GM or AIG,” she said. “Taxpayers are footing the bill for bad business decisions.”

Jim Peterson of Beckley said he encouraged others to come to the meeting. However, they told him that in West Virginia it doesn’t matter what people say or do, and he believes they are correct. He encouraged the PSC and Mountaineer Gas to visit customers’ homes and see how they must live.

“Is there anyone who will listen to the common people?” he asked. “I doubt that will happen in my lifetime.”

— E-mail: apridemore@register-herald.com