Coal has kept the state's economy cooking during the nation's economic recession but Appalachian Power customers are about to get burned by a side effect: higher electric bills.

Appalachian Power on Monday filed a $442 million rate hike request with the state Public Service Commission. "This is driven by the cost of coal," Appalachian spokeswoman Jeri Matheney said.

"On balance coal is a good thing for West Virginia," she said. "Coal provides jobs and keeps our economy going. When coal is doing well, it also brings in tax revenue. It makes us one of the few states in the nation with a budget surplus. But when coal prices go up, it has an effect on electricity prices. That's hard on all of us."

On Monday afternoon, utility officials were still calculating how much of the request was for the cost of fuel, primarily coal; how much was for the cost of environmental projects; and how much was for power the utility has to purchase to meet demand.

Appalachian has said that all of the requested increase is to pass through its costs and that there is no profit for the company.

It's the largest utility rate hike request in state history.

Appalachian Power didn't seek any rate increases from 1991 until 2005. It has asked for a rate hike each of the last four years. The $156 million rate increase the company sought last year included $84 million for fuel. The company's 2007 request contained $27 million for fuel. Its 2005 request included $71 million for fuel.

Terry Eads, director of regulatory services, said that in addition to the increased costs of coal, the utility has been hit with a collapse in the market for its excess power.

"Sales of excess power previously benefited our retail customers," Eads said. "Those sales were down about $200 million last year because coal prices went up but oil and natural prices declined, making it cheaper for utility customers to generate their own electricity needs.

"Six months ago we could sell every kilowatt hour we could generate that our customers did not need at very attractive prices," he said. "But because of the decrease in the price of oil and natural gas, our market has dried up."

Appalachian's annual rate requests stem in part from the fact that in 2006 the state Public Service Commission reinstated a mechanism to reflect changes - both increases and decreases - in the costs of fuel and purchased power. That mechanism had been temporarily suspended in 2000.

The three-member Public Service Commission must approve all utility rate increases. In many cases the utility seeking an increase does not get everything it wants.