Details for Appalachian Power


NOTICE TO THE PUBLIC OF APPALACHIAN POWER COMPANY'S REQUEST TO DECREASE ITS FUEL FACTOR PURSUANT TO VA CODE § 56-249.6 CASE NO. PUR-2020-00163 On September 4, 2020, Appalachian Power Company ("APCo" or "Company") filed with the State Corporation Commission ("Commission") an application ("Application") pursuant to § 56-249.6 of the Code of Virginia seeking a decrease in its fuel factor. The Company proposes to reduce the current factor of 2.300 cents per kilowatt-hour ("¢/kWh") to 1.999¢/kWh, effective for service rendered November 1, 2020, through October 31, 2021 ("Fuel Year"). The Company's proposed fuel factor consists of both an in-period component and a prior-period component. APCo's proposed in-period component is designed to recover its estimated Virginia jurisdictional fuel expenses during the Fuel Year of approximately $266.5 million, including estimated purchased power expenses, and a credit for 75% of projected off-system sales margins. The Company proposes an in-period factor component of 2.020¢/kWh. The prior-period component is a true-up component designed to return to customers over the Fuel Year an estimated over-recovered deferred fuel balance as of October 31, 2020. The Company states that it divided the projected deferred fuel cost balance by the projected Virginia jurisdictional energy sales for the Fuel Year to obtain the prior period over-recovery component of (0.021)¢/kWh. The Company represents that the net impact of the Company's proposed fuel factor over the Fuel Year is an annual revenue decrease of approximately $40 million. APCo maintains that this proposal would decrease the monthly bill of a residential customer using 1,000 kWh of electricity by $3.01, or approximately 2.8%. The Commission entered an Order Establishing 2020-2021 Fuel Factor Proceeding ("Order") that, among other things, scheduled a public hearing to be held on February 10, 2021, at 10 a.m. to receive testimony from public witnesses and the evidence of the Company, any respondents, and the Commission's Staff. Further details on this hearing will be provided by subsequent Commission Order or Hearing Examiner's Ruling. In its Order, the Commission required the Company to place its proposed fuel factor of 1.999¢/kWh into effect on an interim basis for service rendered on and after November 1, 2020. The Commission has taken judicial notice of the ongoing public health emergency related to the spread of the coronavirus, or COVID-19, and the declarations of emergency issued at both the state and federal levels. In accordance therewith, all pleadings, briefs, or other documents required to be served in this matter should be submitted electronically to the extent authorized by 5 VAC 5-20-150, Copies and format, of the Commission's Rules of Practice and Procedure ("Rules of Practice"). Confidential and Extraordinarily Sensitive information shall not be submitted electronically and should comply with 5 VAC 5-20-170, Confidential information, of the Rules of Practice. For the duration of the COVID-19 emergency, any person seeking to hand deliver and physically file or submit any pleading or other document shall contact the Clerk's Office Document Control Center at (804) 371-9838 to arrange the delivery. Pursuant to 5 VAC 5-20-140, Filing and service, of the Commission's Rules of Practice, the Commission has directed that service on parties and the Commission's Staff in this matter shall be accomplished by electronic means. An electronic copy of the Company's Application may be obtained by submitting a written request to counsel for the Company, Noelle J. Coates, Esquire, American Electric Power Service Corporation, 3 James Center, 1051 East Cary Street, Suite 1100, Richmond, Virginia 23219, or Interested persons also may download unofficial copies from the Commission's website: On or before February 3, 2021, any interested person may file comments on the Application by following the instructions on the Commission's website: All comments shall refer to Case No. PUR-2020-00163. On or before November 20, 2020, any person or entity wishing to participate as a respondent in this proceeding may do so by filing a notice of participation. Such notice of participation shall include the email addresses of such parties or their counsel. The respondent simultaneously shall serve a copy of the notice of participation on counsel to the Company. Pursuant to Rule 5 VAC 5-20-80 B, Participation as a respondent, of the Commission's Rules of Practice, any notice of participation shall set forth: (i) a precise statement of the interest of the respondent; (ii) a statement of the specific action sought to the extent then known; and (iii) the factual and legal basis for the action. Any organization, corporation, or government body participating as a respondent must be represented by counsel as required by Rule 5 VAC 5-20-30, Counsel, of the Rules of Practice. All filings shall refer to Case No. PUR-2020-00163. On or before December 11, 2020, each respondent may file with the Clerk of the Commission, and serve on the Commission's Staff, the Company, and all other respondents, any testimony and exhibits by which the respondent expects to establish its case, and each witness's testimony shall include a summary not to exceed one page. In all filings, respondents shall comply with the Commission's Rules of Practice, including 5 VAC 5-20-140, Filing and service, and 5 VAC 5-20-240, Prepared testimony and exhibits. All filings shall refer to Case No. PUR-2020-00163. Any documents filed in paper form with the Office of the Clerk of the Commission in this docket may use both sides of the paper. In all other respects, all filings shall comply fully with the requirements of 5 VAC 5-20-150, Copies and format, of the Commission's Rules of Practice. The Company's Application, the Commission's Rules of Practice and the Commission's Order for Notice and Hearing may be viewed at: APPALACHIAN POWER COMPANY