May 28--CHARLESTON, W.Va. -- Appalachian Power's proposed massive rate hike could put more than 1,000 jobs at risk at Alcan Rolled Products' aluminum plant in Ravenswood, a company executive says.

Michael "Todd" Ritchie, energy and environment director at Alcan, said the Jackson County rolling plant would "suffer substantially" if the state Public Service Commission approves the power company's electricity rate hike request, according to testimony filed with the PSC earlier this week.

The rate hike would be the largest in West Virginia history.

"Such increases would seriously erode the economic sustainability of Alcan's West Virginia facilities and could put more than a thousand West Virginia jobs at risk," Ritchie told the PSC.

Alcan has 1,137 workers at the Jackson County plant.

In February, Ravenswood lost more than 650 jobs when Century Aluminum shuttered its smelter. Century cited slumping aluminum demand and high-energy costs for the shutdown.

Appalachian Power has proposed an interim rate increase next year, and a three-year rate hike "phase-in" plan.

Ritchie criticized both proposals.

He said the interim hike would raise Alcan's electric bill by $5.7 million a year -- a 60 percent increase. The three-year phase-in plan would raise Alcan's electricity costs by $2.4 million each year -- or 25 percent more a year than Alcan now pays.

"Any of these increases will make Alcan's West Virginia facility less and less competitive, and any profitability of certain product lines will simply vanish," Ritchie testified in the filing.

Appalachian Power spokeswoman Jeri Matheney said Wednesday that the utility has some of the lowest electricity rates in the nation.

"We have very competitive rates for both commercial and residential customers, and they will remain competitive even with the proposed increases," Matheney said.

The Ravenswood plant already has been forced to curtail some production because of a 45 percent drop in demand for its aluminum products amid the economic downturn, Ritchie said.

Before Century Aluminum closed its smelter, the company shared some fixed costs with Alcan. Now, Alcan must absorb all of those costs.

"These circumstances add negatively to decisions made by management to continue operating in certain product lines," said Ritchie.

Alcan Rolled Products' parent company, Rio Tinto Alcan, also might be less likely to spend money for facility improvements at the Ravenswood plant, according to company executives.