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Appalachian Power’s parent company will report a pretax loss as a result of a West Virginia Public Service Commission’s decision this week.
American Electric Power reported Thursday to the U.S. Securities and Exchange Commission that it will record a pretax charge of $222 million for the third quarter of 2023.
That reflects the PSC’s disallowance of $232 million of the $553 million the company sought to recover from electricity customers for fuel costs going back to 2021.
In addition to helping reduce the company’s tax burden, the loss appears to have no effect on AEP’s plan to pay its shareholders $1.9 billion in 2024, $200 million more than it paid them in 2023, according to an investor presentation this week.
Appalachian Power did say Wednesday that it planned to explore legal options for the PSC ruling. The commission’s decision Tuesday allowed the company to recover $321 million from customers. That will cost the average household $2.50 a month for 10 years.
Appalachian Power is an underwriter of West Virginia Public Broadcasting.
