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Court: APCo can recoup $6M in environmental costs

RICHMOND, Va. (AP) -- The Virginia Supreme Court says Appalachian Power Co. can recover $6 million of the $33.3 million it sought to cover environmental costs.

The justices unanimously ruled Thursday that the American Electric Power Co. unit is entitled to recover from customers the environmental costs that it did not collect through its base rates. The court said the State Corporation Commission used flawed methodology in denying recovery of those costs, which amounted to $6 million.

But the court affirmed the commission's denial of $27.3 million in environmental costs embedded in capacity equalization charges Appalachian Power paid to its affiliates. The commission had ruled evidence of those costs was insufficient.

Appalachian Power serves about 500,000 customers in Virginia.