PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CASE NO. 22-0044-E-PC
APPALACHIAN POWER COMPANY AND
WHEELING POWER COMPANY
Petition for Commission Approval of Cost Recovery for Three Purchase and Sale Agreements and Three Purchased Power Agreements for Renewable Energy
NOTICE OF FILING AND HEARING
On January 26, 2022, Appalachian Power Company (APCo) and Wheeling Power Company (WPCo) (together, the Companies) filed a petition seeking the recovery of costs associated with APCo’s agreements to acquire the Amherst solar facility, Firefly solar facility, and Top Hat wind facility and APCo’s agreements to purchase renewable energy products from the Dogwood, Horsepen, and Sun Ridge solar facilities. The Companies’ application is on file with and available for public inspection at the Public Service Commission, 201 Brooks Street, Charleston, WV 25301.
The acquisition of the aforementioned renewable energy generation facilities and the purchase of the aforementioned renewable energy products can be expected to have an ultimate impact on the Companies’ West Virginia retail rates at some point in the future. The Companies do not expect these transactions to lead to any significant increase in customer rates. Rather, the Companies project that the transactions will reduce customer rates over the lives of the solar and wind facilities.
The Companies have proposed a Renewable Power Plus (RPP) Tariff to be offered on a voluntary basis to all customers in addition to the Companies’ standard tariff offerings. A copy of the RPP Tariff is on file with the Commission. It is anticipated that, over time, the costs of the Amherst, Firefly, and Top Hat facilities will be paid by the customers subscribing to the RPP Tariff and offset by the cost of service benefits produced by those facilities, including the sale of renewable energy certificates. The costs of the renewable energy products purchased from the Dogwood, Horsepen, and Sun Ridge facilities are proposed to be recovered in expanded net energy charge (ENEC) rates.
The only facility projected to be in service during the first rate year is the Amherst solar facility. The gross costs of Amherst will be recovered through the Companies’ construction surcharge. For that surcharge, the Companies propose to increase rates in Year 1 by $412,731, as shown in the table below. However, the costs being paid for by subscribing customers through the RPP Tariff and the other cost of service benefits produced by the Amherst solar facility will be credited back to all customers through the proposed West Virginia Solar Rider and the Companies’ ENEC, resulting in a much smaller net increase. Any rate increase related to Amherst for each of the Companies’ tariff classes is also shown in the table below. By way of example, a residential customer using 1,000 kWh per month would experience a net monthly increase of $0.02.
The remaining facilities have varying in-service dates, but the Companies project that rates would increase by approximately $1.9 million, on an aggregate basis after offsets, once the facilities have been placed in service, as shown in the table below. Such rates will likely be phased in as of the commercial operation date for the Firefly and Top Hat facilities, and the date of the Companies’ annual ENEC rates for the Dogwood, Horsepen, and Sun Ridge facilities. Any rate increase related to these facilities for each of the Companies’ tariff classes is also shown in the table below. By way of example, a residential customer using 1,000 kWh per month would experience a net monthly increase of $0.49.
The increases shown herein are based on averages of all customers in the indicated class. Individual customers may receive increases that are greater or less than average. Furthermore, the requested rates and charges among the various classes of customers are only a proposal and are subject to change (increases or decreases) by the Commission in its review of the Companies’ filing.
The Commission has set a procedural schedule, including a hearing on the Companies’ application, if necessary, that will begin at 9:30 a.m. on July 21, 2022 and continuing July 22, 2022 if necessary, in the Howard M. Cunningham Hearing Room at the Commission’s offices at 201 Brooks Street, Charleston, West Virginia. The Commission will take public comment at the beginning of the evidentiary hearing or in writing at the address below.
Anyone desiring to intervene in the matter should file a written petition to intervene on or before May 2, 2022. All requests to intervene should briefly state the reason for the request and comply with the rules on intervention set forth in the Commission’s Rules of Practice and Procedure. All written public comments and requests to intervene should state the case name and number and be addressed to Karen Buckley, Acting Secretary, P.O. Box 812, Charleston, WV 25323. Public comments may also be filed online at http://www.psc.state.wv.us/scripts/onlinecomments/default.cfm by clicking the “Formal Case” link.
APPALACHIAN POWER COMPANY and WHEELING POWER COMPANY