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The West Virginia Supreme Court of Appeals has ruled in an Appalachian Power lawsuit against the Public Service Commission.
The state Supreme Court on Wednesday affirmed the PSC’s January conclusion that Appalachian Power mismanaged its fuel supplies in 2021 and 2022. However, it also threw out the PSC’s decision to punish Appalachian Power for its fuel management practices.
The price of coal rose dramatically during that time as the economy recovered from COVID-19 and after Russia invaded Ukraine. Appalachian Power’s plants ran short on coal supplies.
The company tried to pass on the higher costs of coal to electricity consumers. The PSC approved the recovery of more than $300 million in January, but disallowed more than $200 million. Appalachian Power then sued.
The court threw out the PSC’s disallowance and sent that matter back to the commissioners for further review. It is not yet clear how the court’s ruling will affect electricity customers.
Appalachian Power recently tried again to seek PSC approval for a base rate increase. Its previous application was dismissed.
