The agreement covers various aspects such as deferred fuel and purchased power costs, major storm restoration expenses, power plant balances, and environmental compliance project expenses.

With the agreement, Appalachian Power and Wheeling Power agreed to reduce their requested fuel deferral amount by $50 million to minimize customer impact. 

The settlement proposes to utilize West Virginia's utility securitization law to address around $1.9 billion in costs.

AEP's subsidiaries were joined by The West Virginia Energy Users Group and the West Virginia Coal Association, as they also signed the agreement. 

The settlement is subject to review and approval by the PSC.

Outlook: AEP reiterated its 2024 operating earnings guidance of long-term earnings growth of 6%-7% and FFO/Debt target of 14%-15%.

Price Action: AEP shares closed higher by 0.10% at $80.81 on Wednesday.

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