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Bonds proposed to recoup WV utility fuel costs

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CHARLESTON (AP) — West Virginia electric customers may avoid steep rate hikes if utilities were allowed to issue bonds to recover high energy costs.

That's the thinking behind a pair of bills introduced this session in the Senate and House of Delegates.

Each would give the Public Service Commission the authority to consider and approve bond requests from utilities. The commission regulates utilities and already has power over rate changes.

Supporters say bonds would allow a utility to recoup fuel costs up front. It could then seek small, gradual rate hikes for paying off those bonds over a multi-year period.

Lawmakers in Texas approved a similar proposal in 2009. Electric utilities in that state were struggling with costs from restoring power services in the wake of Hurricane Ike.

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