W.Va. approves Allegheny transmission

CHARLESTON, W.Va., Aug. 6 (UPI) -- Allegheny Energy's plan for new transmission was approved by the West Virginia Public Service Commission.

In conjunction with the approval from the PSC, West Virginia Gov. Joe Manchin said he wants to tax high-voltage transmission-line projects and use part of the revenue to balance the electricity rate hikes that are often used to fund their construction, The Charleston Gazette reported.

Allegheny's proposed rate hike was $9.6 million a year or about 90 cents per month for an average customer, including customers of West Virginia utilities such as American Electric Power. The phased-in rate hikes are not likely to begin until January 2014.

Manchin announced his $50 million tax idea several months ago, but reiterated it recently and suggested he would not support the TrAIL line until Allegheny supported his tax.

The project is estimated to cost more than $1.1 billion and will span 120 miles, eight counties and two states with the capacity to transmit 500 kilovolts.