AP, August 2, 2008

Charleston, WV - West Virginia's Public Service Commission approved Allegheny Energy's proposal to construct a 240-mile high voltage power line to increase electrical supplies to 13 eastern states.

The PSC faced a 12:01 a.m. Saturday deadline to reach a decision on the 500-kilovolt line dubbed TrAIL: short for Trans-Allegheny Interstate Line. As proposed, the line would run from southwestern Pennsylvania across West Virginia to northern Virginia.

Allegheny has said the line is needed to prevent blackouts, rolling blackouts and brownouts. PJM Interconnection, the organization responsible for the transmission grid for a 13-state area, said reliable flow of electricity within the Mid-Atlantic region could not be guaranteed past 2011.

Opponents questioned that claim and argued the line would mar scenic views, lower property values and continue an environmentally damaging reliance on coal-fired electricity.

To ease opposition to the $1.3 billion line, Greensburg, Pa.-based Allegheny agreed to give West Virginia customers a seven-year reprieve from costs associated with building the line. The proposed settlement was reached with the PSC's Consumer Advocate Division and staff, and the West Virginia Energy Users Group, a coalition of large energy-consuming companies that includes DuPont and PPG Industries.

The Consumer Advocate Division also agreed not to oppose the line after Allegheny modified the route through northern West Virginia. Allegheny agreed to supply free electricity to about 500 residential landowners. The deal is worth about $70 a month and only applies to residential customers.

"Decisions concerning projects of this magnitude are never easy," said PSC Commissioner Jon W. McKinney. However, he said commissioners believe the utility "proved the need for this project as an active part of the solution to regional electricity supply issues, and also showed a good faith effort to minimize environmental and cultural impacts."

State law required the PSC to issue a decision on the power line by May 3, but in April the agency extended the deadline to Saturday, saying it needed more time to review the proposed settlement and other issues.

A Virginia State Corporation Commission hearing examiner recommended earlier this week that regulators approve the application for Virginia's portion of a proposed line.

The Pennsylvania Public Utility Commission has yet to issue its decision.