Allegheny Power seeks higher rates to add capacity

Rate relief from the regulatory bodies of states served by the Allegheny Power System Inc. (APS) will allow construction to proceed on the new generating capacity needed to avoid power shortages in the 1980s. Permit delays and financial difficulties are holding up all new units planned for after 1980 and could result in an inadequate 10 percent generating reserve by 1985. APS has asked Maryland and West Virginia to grant rate increases and is seeking further relief from Ohio, Pennsylvania, and Virginia. The finance bond and stock situation in each state and several financing options are summarized. The APS reserve problem is matched by that of neighboring utilities, making power purchases an unlikely option for the long-term. APS, with 92 percent of its equipment coal-fired, will have emission-control costs but will be spared conversion costs.