
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, March 1, 1994                   TAG: 9403010107
SECTION: VIRGINIA                    PAGE: B3   EDITION: STATE 
SOURCE: 
DATELINE: RICHMOND                                LENGTH: Short

IF RATES RISE, BLAME SNOW, ICE DAMAGE

The February ice storm caused millions of dollars in damage to power lines and poles, but higher electric rates to pay for the damage are not expected anytime soon.

Still, someone will have to pay, and "it's pretty obvious" who that will be, says Richard Burton, spokesman for Appalachian Power Co.

"A utility has one source of revenue: its customers. Ultimately, the money will have to come from the customers," Burton said.

Virginia Power and Apco said more than 200,000 of their customers were without service at some point during the storm.

Virginia Power has estimated storm damage at between $3 million and $4 million.

"When you compare those costs to Virginia Power's base rate of $3 billion annually, you realize those costs are pretty small," said Ken Schrad, spokesman for the State Corporation Commission, which must approve any rate increase. - Associated Press

by CNB