Appalachian Power's residential customers will see a 7.4 percent rate increase next month.

Jeri Matheney, an Appalachian Power spokeswoman, said "These are just pass-through costs. This is not about profit for the company."

As part of a settlement, Appalachian Power agreed to scrap plans to offer a "senior citizen discount" - up to $60 a year - for customers 65 and over, which the PSC said would eventually cost customers too much money.

The "senior citizen discount" had a catch-clause which said seniors might have been forced to repay the discount three years from now.

Appalachian Power said its $95.3 million rate hike was necessary to recoup the costs of coal.

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