VPS LEGALS/PUBLIC NOTICES - CVA
Details for VPS LEGALS/PUBLIC NOTICES - CVA
LEGAL NOTICE NOTICE TO THE PUBLIC OF A PETITION BY APPALACHIAN POWER COMPANY FOR APPROVAL OF ITS 2025 RENEWABLE PORTFOLIO STANDARD (RPS) PLAN UNDER 搂 56-585.5 OF THE CODE OF VIRGINIA AND RELATED REQUESTS CASE NO. PUR-2025-00049 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 (鈥淰CEA鈥), became effective on July 1, 2020. The VCEA, inter alia, establishes a mandatory renewable energy portfolio standard (鈥淩PS鈥) for Appalachian Power Company (鈥淎PCo鈥 or 鈥淐ompany鈥) in 搂 56-585.5 of the Code of Virginia (鈥淐ode鈥). Subdivision D 4 of Code 搂 56-585.5 requires APCo to submit annually to the State Corporation Commission (鈥淐ommission鈥) plans and petitions for approval of new solar and onshore wind generation capacity (鈥淩PS Filing鈥). The RPS Filing must also include the Company鈥檚 plan to meet the energy storage project targets of Code 搂 56-585.5 E. The Commission must determine whether the RPS Filing is reasonable and prudent, giving due consideration to the following factors: (i) the RPS and carbon dioxide reduction requirements in Code 搂 56-585.5; (ii) the promotion of new renewable generation and energy storage resources within the Commonwealth, and associated economic development; and (iii) fuel savings projected to be achieved by the plan. The Commission鈥檚 final order regarding any RPS Filing is required by Code 搂 56-585.5 D 4 to be entered by the Commission not more than six months after the date of such filing. On May 21, 2025, APCo completed the filing of its annual RPS Filing to the Commission (鈥2025 RPS Filing鈥 or 鈥淧etition鈥). In its 2025 RPS Filing, APCo requests that the Commission: 鈥 Approve the Company鈥檚 annual plan for the development of new solar, wind, and energy storage resources pursuant to Code 搂 56-585.5 D 4 (鈥2025 RPS Plan鈥); 鈥 Approve a revenue requirement of $68,933,091 for the rate year of March 2026 through February 2027 (鈥淩ate Year鈥) to be recovered through the mechanisms and methodology previously approved by the Commission in the Final Order in Case No. PUR-2022-00166 (鈥淩PS Cost Allocation Order鈥), as modified in Case No. PUR-2024-00020; 鈥 Determine that a new Virginia-based solar power purchase agreement (鈥淧PA鈥) is prudent and can be added to the Company鈥檚 RPS compliance portfolio; 鈥 Approve future cost recovery related to the acquisition by APCo, pursuant to a Purchase and Sale Agreement, of one other renewable facility, which is not located in Virginia and will not be online during the Rate Year; and 鈥 Grant the Company a certificate of public convenience and necessity (鈥淐PCN鈥) to acquire and operate a utility-scale battery storage project totaling approximately 52.2 megawatts (鈥淢W鈥) of energy storage and associated facilities (together, 鈥淲ythe BESS鈥) pursuant to Code 搂 56-585.5 E 1, 20 VAC 5-335-30 A of the Commission鈥檚 Regulations Governing the Deployment of Energy Storage, and the Utility Facilities Act, Code 搂 56-265.1 et seq. The Company states that to meet the requirements of the VCEA, its 2025 RPS Plan includes multiple scenarios to help inform future requests for proposals for renewable and storage resources, and that all scenarios meet the RPS goals (Subsection C), Virginia-domiciled renewable generator requirements (Subsection D), and the energy storage requirements (Subsection E). APCo states that the 2025 RPS Plan continues to support a balanced and diverse portfolio of resources consisting of solar, wind, small modular reactor, and market renewable energy certificate (鈥淩EC鈥) purchases. APCo states that in developing the 2025 RPS Plan, the Company ran multiple portfolio optimizations with different resources available. The Company further states that each of the portfolios modeled for this RPS analysis was least cost, in compliance with applicable U.S. Environmental Protection Agency 2024 rules, and included owned and PPA resources to meet annual VCEA renewable and energy storage targets through an optimal selection of diverse resources over the planning horizon. According to APCo, its action plan under the 2025 RPS Plan is to: 鈥 Issue requests for proposals for onshore wind, solar, and energy storage, co-located resources, and RECs; 鈥 Pursue lowest cost compliance options consistent with the allocation percentages for construction or purchase described in Subsection D of Code 搂 56-585.5; 鈥 Continue to monitor changes to environmental rules for further evaluation related to compliance of the Company鈥檚 Amos and Mountaineer coal plants; and 鈥 Make market REC purchases when advantageous. Non-Virginia-Domiciled Wind Facility to be Owned by APCo APCo proposes to own a wind facility outside of Virginia, the Livingston Wind project, which is being developed as a 261 MW facility located in Livingston County, Ohio. APCo asserts that the Livingston Wind project qualifies as an 鈥淩PS eligible source,鈥 as it is 鈥減hysically located within the PJM region.鈥 The Company asserts that Livingston Wind will not be in commercial operation during the Rate Year. Therefore, the Company states that it is not requesting recovery of specific costs in this proceeding. APCo requests that the Commission authorize the Company to implement 鈥渮ero rates鈥 to be kept in place until Livingston Wind enters commercial operation. Solar Power Purchase Agreement The Company sets forth a solar PPA as part of its 2025 RPS Plan for which it seeks a prudency determination. The HCE Collier Solar project is a 7.5 MW solar facility located in Wise County. Utility-Scale Battery Storage Project APCo states that the Wythe BESS project is being developed with a nameplate rating of 52.2 MW (capacity) and 208.8 megawatt hours (energy), and will be sited in Wythe County, Virginia. APCo states that the Wythe BESS project qualifies as an 鈥淩PS eligible source,鈥 pursuant to Code 搂 56-585.5 C, as it is 鈥減hysically located within the PJM region.鈥 The Company states that it seeks Commission approval to acquire and operate the Wythe BESS project, and the granting of a CPCN for the utility-scale battery storage project and associated facilities. Revenue Requirement and Rate Impact APCo seeks approval to recover the Rate Year revenue requirement, through the RPS rate adjustment clauses (鈥淩ACs鈥), of $68,933,091. The Company states that this revenue requirement consists of: (1) the under-recovery of costs through January 2025 in the amount of $7,938,940; (2) the revenue requirement of $6,127,330 for the period February 2025 through February 2026 (鈥淏ridge Period鈥); and (3) the VCEA Rate Year revenue requirement of $54,866,821. APCo states that the cost allocation methodologies and mechanisms used in this Petition are those approved by the Commission in the RPS Cost Allocation Order, which are as follows: 鈥 A.5 RPS RAC to recover $44,002,960, which includes A.5 RPS RAC surcharge revenues, REC-related costs for APCo鈥檚 renewable facilities, and the Rider Wind, Water, Sunlight (Rider WWS) premium for the Bridge Period; 鈥 A.5 RPS-PCAP RAC to recover $4,969,660, which includes the capacity-related costs of the Company鈥檚 PPAs; and 鈥 A.6 RPS RAC to recover $19,960,471 which includes costs associated with the owned solar and wind facilities (Amherst, Top Hat, and Grover Hill). APCo states that the bill impact of the 2025 RPS Filing on a residential customer using 1,000 kilowatt-hours per month would be an increase of $4.36. The foregoing is not an exhaustive list of all the proposals contained in the Company鈥檚 Petition. Interested persons are encouraged to review the Company鈥檚 Petition and supporting documents for the details of these and other proposals. 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鈥檚 Petition and supporting documents. The Commission entered an Order for Notice and Hearing in this proceeding that, among other things, scheduled public hearings on APCo鈥檚 2025 RPS Filing. On August 12, 2025, at 10 a.m., a Hearing Examiner appointed by the Commission will hold a telephonic hearing for the purpose of receiving the testimony of public witnesses. On or before August 6, 2025, 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: (i) by filling out a form on the Commission鈥檚 website at scc.virginia.gov/case-information/webcasting; or (ii) by calling (804) 371-9141. This public witness hearing will be webcast at scc.virginia.gov/case-information/webcasting. Beginning at 10 a.m. on August 12, 2025, the Hearing Examiner will telephone sequentially each person who has signed up to testify as provided above. On August 12, 2025, at 10 a.m., or at the conclusion of the public witness portion of the hearing, whichever is later, in the Commission鈥檚 second floor courtroom located in the Tyler Building, 1300 East Main Street, Richmond, Virginia 23219, the Hearing Examiner will convene a hearing to receive testimony and evidence related to the Company鈥檚 2025 RPS Filing from the Company, any respondents, and the Staff of the Commission (鈥淪taff鈥). To promote administrative efficiency and timely service of filings upon participants, the Commission has directed the electronic filing of testimony and pleadings unless they contain confidential information and requires electronic service on parties to this proceeding. An electronic copy of the public version of the Company鈥檚 2025 RPS Filing 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 njcoates@aep.com. Interested persons also may download unofficial copies from the Commission鈥檚 website: scc.virginia.gov/case-information. On or before July 16, 2025, any interested 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 State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218-2118. Such notice of participation shall include the email addresses of such parties or their counsel, if available. The respondent shall send a copy of the notice of participation electronically to counsel to the Company, Staff, and all other respondents. Pursuant to 5 VAC 5-20-80 B, P articipation a s a r espondent, o f t he C ommission鈥檚 R ules o f Practice and Procedure, 5 VAC 5-20-10 et seq. (鈥淩ules of Practice鈥), 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-2025-00049. On or before July 16, 2025, each respondent may file with the Clerk of the Commission at scc.virginia.gov/clk/efiling any testimony and exhibits by which the respondent expects to establish its case. Any respondent unable, as a practical matter, to file testimony and exhibits electronically may file such by U.S. mail to the Clerk of the Commission at the address listed above. Each witness鈥檚 testimony shall include a summary not to exceed one page. All testimony and exhibits shall be sent electronically to Staff, the Company, and all other respondents. In all filings, respondents shall comply with the Rules of Practice, as modified by the Commission鈥檚 Order for Notice and Hearing, 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-2025-00049. On or before August 6, 2025, any interested person or entity may submit comments on the 2025 RPS Filing by following the instructions found on the Commission鈥檚 website: scc.virginia.gov/case-information/submit-public-comments. Those unable, as a practical matter, to submit comments electronically may file such comments with the Clerk of the Commission at the address listed above. All such comments shall refer to Case No. PUR-2025-00049. 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鈥檚 Order for Notice and Hearing, all filings shall comply fully with the requirements of 5 VAC 5-20-150, Copies and format, of the Rules of Practice. The Company鈥檚 2025 RPS Filing, the Commission鈥檚 Rules of Practice, the Commission鈥檚 Order for Notice and Hearing, and other documents filed in the case may be viewed at: scc.virginia.gov/case-information. APPALACHIAN POWER COMPANY
4860 COX ROAD SUITE 150, GLEN ALLEN, VA 23060