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NOTICE TO THE PUBLIC OF A PETITION BY
APPALACHIAN POWER COMPANY FOR APPROVAL OF
A RATE ADJUSTMENT CLAUSE, RPS-RAC, TO RECOVER
THE INCREMENTAL COSTS OF PARTICIPATION IN THE
VIRGINIA RENEWABLE ENERGY PORTFOLIO
STANDARD PROGRAM PURSUANT TO
VA. CODE §§ 56-585.1 A 5 D AND 56-585.2 E
CASE NO. PUR-2021-00048
•Appalachian Power Company (“APCo”) has applied for approval to revise its rate adjustment clause, RPS-RAC, to recover the residual, incremental costs related
to its voluntary RPS program.
•APCo requests a total revenue requirement of approximately $7.1 million for its RPS-RAC.
•A Hearing Examiner appointed by the State Corporation Commission (“Commission”) will hold a telephonic hearing in this case on October 6, 2021, at 10 a.m.,
for the receipt of public witness testimony.
•An evidentiary hearing will be held on October 7, 2021, at 10 a.m., either in the Commission’s second floor courtroom located in the Tyler Building, 1300 East
Main Street, Richmond, Virginia 23219, or by electronic means. Further details on this hearing will be provided by subsequent Commission Order or Hearing
Examiner’s Ruling.
•Further information about this case is available on the SCC website at: scc.virginia.gov/pages/Case-Information.
In 2008, Appalachian Power Company (“APCo” or “Company”) sought and received approval from the State Corporation Commission (“Commission”) to participate in a voluntary renewable energy portfolio standards (“RPS”) program pursuant to § 56-585.2 E of the Code of Virginia (“Code”). In 2011, the Commission
approved APCo’s request for approval of a rate adjustment clause, designated RPS-RAC, to recover the incremental costs of participation in the voluntary RPS
program pursuant to Code §§ 56-585.1 A 5 d and 56-585.2 E.
During its 2020 Session, the Virginia General Assembly enacted Chapters 1193 (HB 1526) and 1194 (SB 851) of the 2020 Virginia Acts of Assembly. These
duplicate Acts of Assembly, known as the Virginia Clean Economy Act (“VCEA”), became effective on July 1, 2020. The VCEA repealed Code § 56-585.2,
thereby ending the voluntary RPS program, and established a mandatory RPS program for APCo in new Code § 56-585.5.
On May 3, 2021, pursuant to Code §§ 56-585.1 A 5 d and 56-585.2 E, APCo filed a petition (“Petition”) with the Commission for approval to revise the RPS-RAC
to recover the residual, incremental costs related to the Company’s participation in the voluntary RPS program. The Company notes that it has separately received
Commission approval of a new non-bypassable rate adjustment clause to recover the costs of compliance associated with the VCEA’s mandatory renewable portfolio standard (in Case No. PUR-2020-00165) and that the revised RPS-RAC proposed in the current case is intended to recover only the residual costs of compliance
with the voluntary RPS standard. Due to the termination of the voluntary RPS by the VCEA, APCo also requests that the Commission discontinue the RPS-RAC
effective March 1, 2023.
APCo requests implementation of its proposed revenue factor effective March 1, 2022, through February 28, 2023 (“Rate Year”). For the Rate Year, the Company
states that it calculated a total revenue requirement for the RPS-RAC of $7,127,710, which takes into account: (i) an actual under-recovery balance as of December
31, 2020, (ii) actual rider surcredit revenues through February 28, 2021, and (iii) projected rider surcredit revenues for the period March 2021 through February
2022. APCo states that it expects to have materially recovered all costs associated with the voluntary RPS by the end of the Rate Year, on February 28, 2023, but
requests that any under- or over-recovery balance as of that time be considered part of its base rates.
If the proposed RPS-RAC is approved, the impact on customer bills would depend on a customer’s rate schedule and usage. According to APCo, implementation of
its proposed RPS-RAC on March 1, 2022, would increase the monthly bill of a residential customer using 1,000 kilowatt hours per month by approximately $0.89.
The proposed RPS-RAC would also affect non-residential customer bills, though the Company indicates that in accordance with the Code it has not allocated RPSRAC costs to certain large power service customers.
Interested persons are encouraged to review the Petition and supporting documents for additional details.
TAKE NOTICE that the Commission may apportion revenues among customer classes and/or design rates in a manner differing from that shown in the Petition and
supporting documents and thus may adopt rates that differ from those appearing in the Company’s Petition and supporting documents.
The Commission entered an Order for Notice and Hearing that, among other things, scheduled public hearings on APCo’s Petition. On October 6, 2021, at 10 a.m.,
the Commission will hold a telephonic hearing for the purpose of receiving the testimony of public witnesses, with no public witness present in the Commission’s
courtroom. On or before October 4, 2021, any person desiring to offer testimony as a public witness shall provide to the Commission (a) your name, and (b) the
telephone number that you wish the Commission to call during the hearing to receive your testimony. This information may be provided to the Commission in three
ways: (i) by filling out a form on the Commission’s website at scc.virginia.gov/pages/Webcasting; (ii) by completing and emailing the PDF version of this form to
SCCinfo@scc.virginia.gov; or (iii) by calling (804) 371-9141.This public witness hearing will be webcast at scc.virginia.gov/pages/Webcasting.
On October 7, 2021, at 10 a.m., either in the Commission’s second floor courtroom located in the Tyler Building, 1300 East Main Street, Richmond, Virginia
23219, or by electronic means, the Commission will convene a hearing to receive testimony and evidence offered by the Company, any respondents, and the Commission’s Staff on the Company’s Petition. Further details on this hearing will be provided by subsequent Commission Order or Hearing Examiner’s Ruling.
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. Please refer to the Commission’s Order for Notice and Hearing for further instructions concerning
Confidential or Extraordinarily Sensitive Information.
An electronic copy of the Company’s Petition 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 E. Cary Street, Suite 1100, Richmond, Virginia 23219, or njcoates@aep.com.
On or before October 6, 2021, any interested person may file comments on the Petition by following the instructions on the Commission’s website:
scc.virginia.gov/casecomments/Submit-Public-Comments. All comments shall refer to Case No. PUR-2021-00048.
On or before July 30, 2021, any person or entity wishing to participate as a respondent in this proceeding may do so by filing a notice of participation at
scc.virginia.gov/clk/efiling. 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 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 5 VAC 5-20-30, Counsel, of the Rules of Practice. All filings shall refer to Case No. PUR-2021-00048.
On or before August 20, 2021, each respondent may file with the Clerk of the Commission at scc.virginia.gov/clk/efiling 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-2021-00048.
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, except as
modified by the Commission’s Order for Notice and Hearing, 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 Petition and the public version of other documents filed in this case, the Commission’s Rules of Practice and the Commission’s Order for Notice
and Hearing may be viewed at: scc.virginia.gov/pages/Case-Information.
APPALACHIAN POWER COMPANY

4860 COX ROAD SUITE 150, GLEN ALLEN, VA 23060

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