Block · one region of the page, as the scanner read it. It may hold a whole story, part of one, several, or an advertisement; stitching blocks into articles is the next step. Text is supplied OCR.
Page 4 · column 6 of 9 · from the scan, no model involved
Virginia Attorney General Marshall Coleman proposed a new policy that would cut VEPCO’s allowed rate of return until the utility improves its levels of efficiency.
In his statement before the State Corporation Commission. Coleman said today that a productivity incentive is needed to encourage more effective use of existing resources and improved performance by VEPCO. Coleman cited testimony by the SCC staff which noted that VEPCO's operating costs were in the top 25 percent of the nation's 225 electricity utility companies. In addition. the testimony noted that since 1973. VEPCO rates have risen faster than the consumer price index.
Coleman told the Commission that once VEPCO has demonstrated improved efficiency. 9.66 percent would be a fair rate of return, based on expert witness' testimony. However. Coleman said that until this improved efficiency is demonstrated. 9.4 percent, a lower rate of return suggested by other expert testimony. would be adequate.
In testimony filed with the SCC earlier, the Atorney General said that more than $100 million of VEPCO's requested $246 million rate increase is not needed.
Some major revenue reductions indicated in the testimony of the Attorney General include:
—a $30 million savings in accounting methods used to project revenues derived from the North Anna plant: — A $25 million savings that would be derived if the SCC turned down VEPCO's request allowing the company to pass on to consumers the
85.7%