PSC Says Appalachian Power Can Issue Bonds To Cover Expenses

Appalachian Power will use bonds to recover costs as part of a plan that avoids a larger rate increase on customers.

The West Virginia Public Service Commission on Friday said it would approve Appalachian Power’s securitization plan.

The company will bundle $2.4 billion in expenses, including fuel costs, storm recovery costs and environmental compliance costs and issue bonds that will be paid back over 20 years.

The securitization plan would cost the average residential user about $7 a month. That compares with a nearly $24 rate increase that the commission did not approve.

The plan notably includes $321 million in deferred fuel expenses that the PSC approved in 2023. Customers have been paying about $2.50 a month and would have for a decade. 

It includes $237 million in upgrades to wastewater treatment and coal ash disposal systems at the Amos, Mountaineer and Mitchell Plants.

The plan also includes a total of $158 million in storm recovery expenses.