CHARLESTON, W.Va., Sept. 2, 2025 – Appalachian Power (APCo) and Wheeling Power received approval from the Public Service Commission of West Virginia (PSC) to use a process known as securitization to lower customer rates.
The order allows APCo to recover approximately $2.4 billion in investments and expenses through consumer rate relief bonds over an extended period of time, as compared to traditional methods, ultimately saving customers money.
The Utility Consumer Rate Relief Bonds Act of 2023 enables the PSC to “employ alternative financing mechanisms,” such as securitization, whenever deemed prudent.
“When we originally filed our case in 2024, we were focused on finding innovative ways to reduce the financial burden on our customers,” said Aaron Walker, Appalachian Power president and chief operating officer. “We are pleased that the PSC agreed with our recommendation and saw the benefit of securitization to provide some relief to our customers.”
The PSC’s order allows APCo to consolidate under-recovered balances from several pending cases, including expanded net energy costs (ENEC) and deferred storm costs from major storms such as Hurricane Helene.
The order also allows for the securitization of the company’s West Virginia share of the undepreciated plant balances of Amos, Mountaineer and Mitchell power plants and approximately $236.7 million in costs associated with meeting U.S. Environmental Protection Agency rules on Coal Combustion Residual and Effluent Limitation Guidelines.
The PSC approved APCo’s request to securitize these costs just one day after issuing an order in the company’s base rate case approving an increase of $76.1 million. As part of the base rate case ruling, the PSC requested that there be no change in customer rates at this time.
The securitization process involves issuing public bonds and will take several months to complete. Once securitization bonds are issued, there are several rate changes that will take effect, which will lead to a decrease in overall rates.