{Charleston, West Virginia}...To avert massive rate increases, Appalachian Power and Wheeling Power have asked the state Public Service Commission for permission to sell up to $415 million in bonds. Most of the bond sale would cover fuel costs the power companies racked up several years ago following a dramatic rise in coal prices. Earlier this year, the Legislature approved an Appalachian Power-backed bill allowing the power companies to sell bonds with PSC approval. In 2009, Appalachian and Wheeling asked the PSC for a 43 percent rate increase to recover $442 million in fuel, purchased power and pollution control equipment costs. The PSC opted for a plan that would spread those costs over four years. The PSC granted a 10.5 percent increase in 2009, a 7.2 percent increase in 2010 and a 7.3 percent increase in 2011. The companies had about $311.9 million in outstanding charges at the end of 2011. In addition to the fuel costs, the companies need to recover $103 million in debt incurred for plant improvements and other expenses in recent years.
