Legal 3 col x 7-1/4”
0418
PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON
CASE NO. 20-0261-E-P
APPALACHIAN POWER COMPANY and
WHEELING POWER COMPANY, public utilities,
Petition for review of Vegetation Management Program and
True-Up of VMP Surcharge.
and
CASE NO. 20-0262-E-ENEC
APPALACHIAN POWER COMPANY and
WHEELING POWER COMPANY,
public utilities.
Petition to initiate the annual review and update to the ENEC
rates currently in effect.
NOTICE OF FILING AND HEARING
On February 28, 2020, Appalachian Power Company (APCo) and Wheeling Power Company (WPCo) (collectively Companies) filed a Petition for Commission review of their vegetation management program (VMP) and true-up of the VMP surcharge, their fourth such filing. The filing includes an update on the VMP Program from distribution and transmission system perspectives, including the progress in implementation, the costs incurred, and the results produced by the VMP to date. The Companies are requesting an increase in the VMP Surcharge rates to produce annual revenues of $108.6 million to eliminate the accumulated VMP under-recovery balance and defray the ongoing costs of the VMP.
Also on February 28, 2020, the Companies filed their 2020 petition to initiate the annual review and update of Expanded Net Energy Cost (ENEC) rates. The Companies propose to increase ENEC rates to produce an additional $82 million in annual ENEC revenues.
The percentage increase due to an annual $70.2 million VMP and annual $82 million ENEC rate increase by rate schedule and in total revenue is as follows:
ENEC Increase VMP Increase
as Percentage as Percentage
of Total of Total
Revenue Revenue
R.S. 6.2% 7.1%
s.w.s. 5.2% 6.9%
S.S. 6.4% 5.5%
S.G.S 2.8% 3.6%
G.S. 4.6% 5.7%
L.C.P. & I.P. 5.2% 1.3%
O.L. 2.5% 1.2%
S.L. 1.8% 1.4%
The Companies are also proposing new Tax Reform Rider credit rates effective July 1, 2020 through June 30, 2021 to tlow back to customers the remaining uncommitted balance of the Companies’ unprotected excess accumulated deferred federal income taxes. The Companies also make two alternative proposals for the treatment of PJM Open Access Transmission TaritT revenues in ENEC proceedings. Finally, the Companies request approval to include in the ENEC rates default charges assessed by P JM against the Companies related to the default of GreenHat Energy, LLC on its obligation in PJM’s financial transmission rights market.
The Commission set a procedural schedule in both cases, including an evidentiary hearing to begin on June 10, 2020, and to continue to June 11, 2020, if necessary. The hearing will begin at 9:30 a.m. in the Howard M. Cunningham Hearing Room at the Commission’s offices at 201 Brooks Street, Charleston, West Virginia.
Anyone desiring to intervene and act as a party in either of these cases should file a Petition to Intervene within ten days following the date of this publication, complying with the rules on intervention set forth in the Commission’s Rules of Practice and Procedure. Anyone desiring to protest should file a written protest as soon as possible although protests will be accepted throughout the pendency of this proceeding. All written protests should briefly state the reason for the protest. All protests and Petitions to Intervene should state the case name and number and be addressed to Connie Graley, Executive Secretary, P.O. Box 813, Charleston, West Virginia 25323.
APPALACHIAN POWER COMPANY and
WHEELING POWER COMPANY