Allegheny Power, the electric delivery subsidiary of investor-owned utility Allegheny Energy, has proposed a rate stabilisation and transition plan for its Maryland residential customers.

Rate caps in the area have kept residential customers' electric bills artificially low for the past six years, during which time the cost of fuels used to generate electricity increased dramatically. Since the beginning of 2001, coal and natural gas prices have increased 43% and 71% respectively, according to