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AEP: Put Cost From Storms On Customers

January 5, 2013

COLUMBUS, Ohio (AP) — The utility company American Electric Power wants to make its Ohio customers pick up the $61.8 million tab for repairs from last summer’s severe storms....

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(21)

mikeyd

Jan-05-13 6:46 AM

proper tree trimming the next time might be in order.the people that do this don't do it right.if we are the ones paying then the whole tops should be removed instead of just half.someone should be getting paid to make sure these jobs are done right.leaving half the top of the tree to fall on the line the next time does us consumers no good.pass the buck,these trees were not trimmed right the last time.not the fault of us consumers although we'll be the ones to pay because it is something we have to have.the working group will pay again[since we also have to pay for the people that don't have to pay bills].a little common sense.

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Snoopy

Jan-05-13 9:11 AM

AEP has been charging customers for several months! They put new meters on your house and next thing you know your electric bill goes sky high!I never lost electric so why should I pay for it? People just can not afford to keep paying high prices for stuff. If I shut anything else off I might as well use oil lamps etc and be in pioneer days!

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SpankysLastDance

Jan-05-13 9:22 AM

I lived in Florida during the four hurricanes of 2004. I didn't have any damage to my property, but I paid double electric bills for several months afterwards, a normal bill ran about 170-180 month, double that! I had no power for nearly about six weeks, lost two refrigerator reloads of food. Then all the scavenger contractors from the northern states like Ohio, Wv, Pa, showed up and took away my contracting work! Life sux, you aren't going to beat the power company especially when they team up with the crooks in the government! So*****it up, give up a six pack, and pay your bill!

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Triton

Jan-05-13 10:37 AM

Is it a free market business if you can operate and collect your profit margin and any risk to your operation, any costs are just passed on to the consumer while the company continues to collect its fees and makes its profit. Maybe AEP should negotiate relief from FEMA, but how does a business pass on their costs to the customer so that their profit margin is protected? Did they apply for this increase? If there is a strike, do the customers have to pay to maintain their profit? How come AEP shareholders have no risk to thier investment? Cuz they can force customers to pay for their downfalls, mandatory payments in fact. Doesn't seem right does it?

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TrollSlayer

Jan-05-13 11:14 AM

Triton “Is it a free market business” AEP doesn’t operate under the free market; it’s a highly-regulated utility.

“Did they apply for this increase?” Yes, as the article says, “The utility's reimbursement request [was] filed with the Public Utilities Commission of Ohio.”

“how does a business pass on their costs to the customer so that their profit margin is protected?” The same way any other business passes on costs to consumers. Through price increases or service cuts.

“If there is a strike, do the customers have to pay to maintain their profit?” Yes, the same as for any other business. No profit means no investors means no company.

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TrollSlayer

Jan-05-13 11:15 AM

Triton “How come AEP shareholders have no risk to thier investment?” Over the last five years the value of AEP stock has declined. So there’s always risk to investment.

“Cuz they can force customers to pay for their downfalls, mandatory payments in fact. Doesn't seem right does it?” Talk to your Congressman. Congress buys most of their votes by forcing payers to pay for the downfalls of non-payers, though, so I doubt you’ll get much more than a polite “thank you for your valuable feedback” letter, though.

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dyingov

Jan-05-13 11:44 AM

troll, Did you take into consideration that AEP pays dividends? Stock price was about $46 five years ago and was about $43 yesterday. The average dividend per year in the last 5 years is about $1.50 per share. Not bad if you held-on to the stock through the "melt-down" of early 2009!

reminds me of what the economists and financial peeps where saying during the stock melt-down, "we have no clue if you should sell or hold your stocks!" Now those peeps are claiming that the market is the place to have your money! The DOW still has not reached the 14,000 peak of 5-6 years ago!

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richardwhee

Jan-05-13 1:35 PM

The $61M in repairs must have been performed by overpriced union labor.

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TrollSlayer

Jan-05-13 2:20 PM

dyingov, not bad? One share of AEP stock bought at $46 five years ago would have generated $7.50 in dividends. Taxed at 15%, those dividends are now worth $6.37. The value of your share lost $3, so you would be ahead by $3.37. About a 7% growth in your investment in five years comes out to 1.4% profit a year. Woo hoo.

Those greedy AEP owners sure aren’t getting rich on a 1.4% annual return. But take more of those meager profits, those investors will put that money elsewhere, and when AEP goes away you can switch to candles for lighting.

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dyingov

Jan-05-13 2:29 PM

Troll, I'm sure if AEP wanted to get out of the electric generation business some company would be glad to buy them! Utility stock is fairly stable. With the stock market big rewards also come with big risk!

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daWraith

Jan-05-13 4:54 PM

If you don't like their bills, invest about $40,000 in wind and solar and STILL be without power on a calm cloudy day!

But you will be helping the environment and all of Obama's green investments . . . . .

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Gooseman

Jan-06-13 10:35 AM

Privatize the profits socialize the losses.

What happened to original article?

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TrollSlayer

Jan-06-13 10:51 AM

LOL Goosy, nobody’s getting rich on utility stocks. But there are lots of retirees with retirement portfolios that contain AEP because of it’s relatively safe, slow but steady rate of growth. You know, the "rich" you're always bashing. And customers have to cover the cost in EVERY organization, or the organization goes bankrupt.

Wait a minute. Not every organization. Government organizations don’t have to cover the cost. Running a deficit, or raising taxes on non-customers, are management techniques only Government organizations can impose. Maybe we should go that route for electrical power, like we did for health insurance, eh Goosy? Then we could be more like Venezuela.

mmm mmm mmm, more Kool-Aid please

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walksabout

Jan-06-13 10:19 PM

proper tree planting. people plant under power lines. Should trim the trees on your property and the elcetric company should pay you.

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walksabout

Jan-06-13 10:20 PM

step up the voltage and limbs contacting the lines will be zapped to smitherines.

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walksabout

Jan-06-13 10:27 PM

may I suggest a neat place for AEP owners to put their money and campany ? None of these power companies existed when the pilgrims landed. They did well.

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walksabout

Jan-06-13 10:29 PM

west virginny lectrik place.

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walksabout

Jan-06-13 10:31 PM

If you don't like their bills sneak into the country illegally and the American tax payers will pay them for you.

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mikeyd

Jan-07-13 12:18 AM

it cost 62mil to make repairs.this is coming from the same company that said that it cost 15mil per mile to install underground wire.

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WVEXPAT

Jan-07-13 10:00 AM

"Privatize the profits socialize the losses."

As in the G.M. bailout? Or Solyndra? Or our Federal debt?

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walksabout

Jan-07-13 8:38 PM

"Privatize for profits to business, Privatize for losses to tax payers. Socialize for profits to business. Socialize for losses to tax payers. Private business forces government to award management contract for social programs to private business for cost plus.

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