CHARLESTON, W.Va. — The state Public Service Commission has rejected Appalachian Power Company’s proposed settlement on past fuel costs and decided customers will pay back the amount over 20 years.
The PSC order, filed Tuesday, allows Appalachian Power and Wheeling Power to recover $371.1 million over 10 years or $37.1 million a year. The average customer’s bill will go up approximately $2.50 a month for that 10-year period.
Late last month the utilities proposed a settlement to basically take the costs and turn it into bonds with customers paying back the debt over 20 years. The PSC said that plan would have had customers pay $2.9 billion or $3.17 a month over the 20-year plan.
Appalachian Power originally asked for $552.9 million in under-recovered costs as of Feb. 28, 2023, and $88.8 million from Sept. 1, 2023 through August 2024.
The PSC’s 37-page decision criticized Appalachian Power’s decision to have smaller coal stockpiles at its power plants leaving the company more vulnerable to swings in coal prices.
Customers’ bills will begin reflecting the PSC decision in September.