APPALACHIAN POWER COMPANY
FOR APPROVAL TO MODIFY RIDER WWS
AND RIDER REC
CASE NO. PUR-2022-00212
•Appalachian Power Company has filed an application for approval to modify Rider WWS and Rider REC.
•Rider WWS and Rider REC are voluntary tariffs whereby participating customers can elect to purchase 100 percent of their energy and capacity needs from renewable energy resources or offset their energy usage by purchasing low-cost renewable energy certificates (‘‘RECs’’).
•The Company proposes to charge a premium above standard service of $0.0210 per kWh for energy under Rider WWS, and $0.95 per 100 kWh block for customers participating in Rider REC’s Block Purchase Option, and $0.0095 per kWh for customers participating in Rider REC’s All Usage or RPS Purchase options.
•Further information about this case is available on the SCC website at: scc.virginia.gov/pages/Case-Information.
On December 7, 2022, Appalachian Power Company (‘‘Appalachian’’ or ‘‘Company’’), pursuant to § 56-236 and § 56-577 A 5 (‘‘Subsection A 5’’) of the Code of Virginia (‘‘Code’’), filed with the State Corporation Commission (‘‘Commission’’) an application (‘‘Application’’) for approval to modify the pricing applicable to its (1) Rider Wind, Water, and Sunlight (‘‘Rider WWS’’), a voluntary rider under which its customers can purchase ‘‘electric energy provided 100 percent from renewable energy’’ under Subsection A 5; and (2) Rider Renewable Energy Certificate (‘‘Rider REC’’), another optional rider that allows participating customers to offset their energy usage by purchasing low cost Renewable Energy Certificates (‘‘RECs’’). Appalachian also proposes methodology for making future changes to the pricing for these riders administratively after investigation by the Staff of the Commission (‘‘Staff’’).
Specifically, Appalachian proposes to revise the premium above standard service to $0.0210 per kilowatt-hour (‘‘kWh’’) for energy under Rider WWS. The Company proposes charging $0.95 per 100 kWh block for customers participating in Rider REC’s Block Purchase Option, and $0.0095 per kWh for customers participating in Rider REC’s All Usage or RPS Purchase options. The Company proposes that these revisions become effective on July 1, 2023, and that such revisions should be reviewed again in six months.
The Application states Appalachian received Commission approval of Rider REC in 2018 and Rider WWS in 2019. In support of its Application, the Company states that market costs for RECs used to calculate original premiums under Rider REC and Rider WWS have changed significantly, along with Appalachian’s resource mix. The Company’s methodology in calculating the $0.0210 per kWh premium averaged the most recent quotes for, and average cost of, RECs in the period in which the rates will be effective.
Appalachian also requests that the Commission approve its proposed methodology for updating the premiums in the future for both Rider WWS and Rider REC, asserting that this methodology results in a premium that reflects both current and anticipated REC values. Under its proposal, the Company will file new premium calculations for both riders on or near the first day of February and August of each year using new market information for Staff administrative review, after which the Company will provide notice of the new rate, and allow customers 30 days to disenroll from the voluntary programs before the new rate becomes effective on each January 1 and July 1 going forward.
TAKE NOTICE that the Commission may adopt rates that differ from those appearing in the Company’s Application. Interested persons are encouraged to review the Application and supporting documents for the details of these proposals.
To promote administrative efficiency and timely service of filings upon participants, the Commission has, among other things, directed the electronic filing of testimony and pleadings, unless they contain confidential information, and require electronic service on parties to this proceeding. 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. At this time, 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 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 Comment for further instructions concerning Confidential or Extraordinarily Sensitive Information.
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; C. Dixon Wallace III, Esquire, Hunton Andrews Kurth LLP, Riverfront Plaza, East Tower, 951 East Byrd Street, Richmond, Virginia 23219; njcoates@aep.com or dwallace@huntonak.com.
On or before March 15, 2023, any interested person may file comments on the Application by following the instructions on the Commission’s website: scc.virginia.gov/casecomments/Submit-Public-Comments. Those unable, as a practical matter, to submit comments electronically may file such comments by U.S. mail to the Clerk of the State Corporation Commission c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218-2118. All comments shall refer to Case No. PUR-2022-00212.
On or before March 15, 2023, 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. Those unable, as a practical matter, to file a notice of participation electronically may file such notice by U.S. mail to the Clerk of the Commission at the address listed above. Such notice of participation shall include the email addresses of such parties or their counsel. The respondent 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 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-2022-00212.
On or before March 15, 2023, any interested person or entity may file a request for hearing with the Clerk of the Commission at
scc.virginia.gov/clk/efiling. Those unable, as a practical matter, to file electronically may file a request for hearing by U.S. mail to the Clerk of the Commission at the address listed above. Requests for a hearing shall include: (i) a precise statement of the filing party’s interest in the proceeding; (ii) a statement of the specific action sought to the extent then known; (iii) a statement of the legal basis for such action; and (iv) a precise statement why a hearing should be conducted in this matter. All requests for a hearing shall refer to Case No. PUR-2022-00212.
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 Comment, all filings shall comply fully with the requirements of 5 VAC 5-20-150, Copies and format, of the Rules of Practice.
The Company’s Application, the public version of other documents filed in this case, the Commission’s Rules of Practice, and the Commission’s Order for Notice and Comment, may be viewed at: scc.virginia.gov/pages/Case-Information.
APPALACHIAN POWER COMPANY
