The West Virginia Supreme Court of Appeals recently ruled in favor of Appalachian Power in a lawsuit against the Public Service Commission. The court affirmed the PSC’s conclusion that Appalachian Power had mismanaged its fuel supplies in 2021 and 2022 but threw out the decision to punish the company for its practices. This ruling comes after the price of coal rose dramatically, causing Appalachian Power’s plants to run short on supplies.
In response to the increased costs of coal, the company attempted to pass these expenses on to electricity consumers. The PSC approved recovery of over $300 million but disallowed more than $200 million, leading Appalachian Power to file a lawsuit. The court’s decision has sent the matter back to the commissioners for further review, impacting how it will affect electricity customers remains unclear.
Appalachian Power had also sought a base rate increase from the PSC, but its previous application was dismissed. This ruling marks a significant development in the ongoing legal battle between the power company and the commission. As the case continues to unfold, it will be crucial to monitor how the court’s decision ultimately impacts both Appalachian Power and electricity consumers in West Virginia.
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