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'Alternative' Energy Costlier than Coal

West Virginia legislators appear ready to give Appalachian Power, whose service area includes Ohio and Marshall counties, authority to sell bonds the company wants to use to hold electric rates down now - probably at the cost of higher ones in the future.

From the company's standpoint, the idea makes sense. It would allow Appalachian to avoid a sudden price jump of 30-40 percent, instead spreading the burden out over several years to come.


But Appalachian's explanation of why its costs necessitate an increase is interesting. One major cause is a spike in the cost of coal to generate electricity, the company says.

But as matters stand, coal is the most economical method of generating electricity. President Barack Obama's administration is pressuring utilities to abandon it in favor of other fuels - preferably "alternatives" such as wind and solar power.

Some utilities, including Appalachian's parent, AEP, already have plans to close some coal-fired plants and convert to other fuels.

Once that happens, power prices will explode - making Appalachian's current worry over coal prices seem like a fond memory.