Heath E. Combs
RICHMOND, Va. — Executives from four southwest Virginia furniture companies appealed to the State Corporation

Commission here last week for a break from a recent Appalachian Power rate hike.

The rate increase will add about $198 million to Appalachian Power revenues. A spokesman for the company, John E. Shepelwich, said the rate hike is the first in the Virginia territory since 1993, excluding annual adjustments to fuel charges, which generate no profit for the utility.

Appalachian Power filed for the increase in May and instituted it Oct. 2, pending the Corporation Commission’s findings in the hearing. In Virginia, rate increases can be implemented on an interim basis prior to their approval.

“We … understand the rising cost of doing business. That’s the only reason we’re asking for a rate increase this time, because indeed our costs have gone up dramatically,” Shepelwich said.

The rate hike would tack on about $120,000 more for Vaughan Furniture in 2014’s bill, according to Taylor Vaughan, senior executive vice president and one of the executives who spoke to the commission.

Vaughan said the furniture executives would want the rate increase eliminated or substantially reduced. Over the last several years, the company has reduced its production from four plants with 1,500 employees, to one plant with 370 employees. 

“With what the industry is going through, with costs are going up, to have a 25% increase in any sector of cost (is harmful). It’s not an item we can just decide we’re not going to use,” he said.