Mar. 31--Gov. Joe Manchin said the Obama administration's plan to auction permits that would allow companies to emit greenhouse gases could clobber electric customers.

The governor also said Rio Tinto Alcan's top executive wants to make a major investment in the company's Ravenswood rolling mill.

Manchin's comments came Monday during a meeting with the Daily Mail Editorial Board.

Appalachian Power Co.'s proposed 43 percent rate hike is "a drop in the bucket compared to cap-and-trade," Manchin said. With a cap-and-trade system, "you'll pay twice what you do now."

"I believe cap-and-trade is coming, but in what form? If the proceeds are used to fix the problem -- for research to find ways to use the carbon emissions or to stop it -- and if, say, half of the money is used to find the fuel of the future, like renewables, I'm OK with that," Manchin said.

"But if you tell me you want to use the money to take care of health care, to do the middle income tax credits, then what you've done is raise my bill and the economy we've known, the economy we have, is not the same."

Manchin said the Obama administration "is being open on this" and willing to talk. He said a letter written earlier this month by Sen. Robert C. Byrd, seven other Democratic senators and 25 Republican senators "slowed things down" in Congress.

"We need to find a cure" to greenhouse gas emissions, Manchin said. "We all agree burning coal creates carbon dioxide. Security comes in. My number one concern is the security of the nation. And that means being less dependent on foreign oil.

"I know that if I can liquefy coal until we get to fusion, then I'm saying I'm fine. But they (coal's opponents) haven't raised it to that level. They say it's dirty, it kills the environment, and 70 percent of the people believe that.

"I say we can fix it with technology but we're going to pay a lot more.

"I say if you're going to give my aunt a $400 tax rebate but you're going to charge her $100 a month more for electricity, she'll figure that out. I don't think that's going to go over very well."

Manchin said 25 midwestern states are the center of the nation's industrial might, "where all of the heavy lifting is done." He said pressure is coming from New York and the East Coast to raise electricity costs here to 12 or 13 cents a kilowatt-hour for electricity.

"They say, 'now we have a level playing field.' I say you didn't build this country on that. Our country was built on competitive energy.

"India won't slow down," he said.