Article: AEP says rate hike driven by coal: ; Utility says proposed $442 million increase is to cover costs, not profit

Coal has kept the state's economy cooking during the nation's economic recession but Appalachian Power customers are about to get burned by a side effect: higher electric bills.

Appalachian Power on Monday filed a $442 million rate hike request with the state Public Service Commission. "This is driven by the cost of coal," Appalachian spokeswoman Jeri Matheney said.

"On balance coal is a good thing for West Virginia," she said. "Coal provides jobs and keeps our economy going. When coal is doing well, it also brings in tax revenue. It makes us one of the few states in the nation with a budget surplus. But when coal prices go up, it has an effect on electricity prices. That's hard on all of ...

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