Allegheny Power seeks rate increase in W.Va.

Allegheny Power has asked the Public Service Commission of West Virginia for a rate increase to offset higher coal prices, the electric delivery subsidiary of Allegheny Energy Inc. said Friday.

Allegheny Power noted in the request its intent to recover an additional $173 million in annualized fuel and purchased power costs. The effective date is Jan. 1.

The company said prices for coal, the single largest component of its cost of producing electricity, have more than tripled since current rates went into effect in 2007.

After the proposed rate increase, a monthly bill for an Allegheny Power residential customer using 1,000 kilowatt-hours would be about $86, an increase of about $13 compared to current rates, the company said.

Under a cost recovery clause established by the Commission last year, customer bills are adjusted annually to reflect changes in the cost of fuel and purchased power.

Shares of Allegheny Energy fell $1.13, or 2.4 percent, to $45.35 in afternoon trading.