Details for Appalachian Power Company

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NOTICE TO THE PUBLIC OF THE PETITION OF APPALACHIAN POWER COMPANY FOR REVISION OF A RATE ADJUSTMENT CLAUSE PURSUANT TO § 56-585.1 A 6 OF THE CODE OF VIRGINIA WITH RESPECT TO THE DRESDEN GENERATING PLANT CASE NO. PUR-2019-00038 Appalachian Power Company ("Company") has applied to update its rate adjustment clause ("G-RAC") by which it recovers the costs of its Dresden Generating Plant. The Company requests a revenue requirement of $29.9 million for its 2020 G-RAC. According to the Company, this amount would decrease the bill of a residential customer using 1,000 kilowatt-hours per month by $0.73, when compared to the rates effective April 1, 2019. A Hearing Examiner appointed by the Commission will hear the case on December 18, 2019. Further information about this case is available on the SCC website at: http://www.scc.virginia.gov/case. On May 31, 2019, pursuant to § 56-585.1 A 6 of the Code of Virginia, Appalachian Power Company ("APCo" or "Company") filed a petition ("Petition") with the State Corporation Commission ("Commission") for approval to recover costs associated with APCo's Dresden Generating Plant ("Dresden"), a 613 megawatt natural gas-fired, combined-cycle generating plant located in Dresden, Ohio. APCo acquired Dresden from AEP Generating Company, an affiliate of APCo, in 2011. On January 3, 2012, the Commission approved the Company's request for approval of a rate adjustment clause ("G-RAC"), which allowed APCo to recover its costs associated with the Company's acquisition and operation of Dresden. Dresden was placed into service on January 31, 2012, and the Company implemented the initial G-RAC effective March 1, 2012. In this proceeding, APCo has filed for approval of a revised G-RAC. The Company seeks approval of a total revenue requirement of $29.9 million for the period May 1, 2020, through April 30, 2021. This total revenue requirement is composed of: (i) an actual under-recovery of $9.7 million for the period ended February 28, 2019; (ii) the projected over-recovery of $8.1 million for the period of March 1, 2019, through April 30, 2020; and (iii) the projected base annual revenue requirement of $28.3 million for the period of May 1, 2020, through April 30, 2021. APCo proposes to recover the $29.9 million total revenue requirement through two separate factors. A base factor would reflect the $28.3 million projected base annual revenue requirement and would remain in effect on an ongoing basis. A true-up factor would reflect the true-up revenue requirement of $1.6 million (the total of the $9.7 million actual under-recovery and the $8.1 million projected over-recovery described above) and would remain in place for one year. Approval of the proposed revenue requirement would slightly decrease the monthly bill for a residential customer using 1,000 kilowatt-hours per month by $0.73, or about 0.7%, when compared to rates effective April 1, 2019. The Company also seeks approval to file its next G-RAC petition no later than May 31, 2021, though the Company would file earlier if, after March 1, 2020, the cumulative over-/under-recovery level exceeds $5 million for each month of two consecutive quarterly reporting periods. Interested persons are encouraged to review the Petition and supporting documents for the details of these and other proposals. TAKE NOTICE that the actual amounts approved by the Commission could be different than the amounts proposed by the Company's Petition and 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 in this case that, among other things, scheduled a public hearing on December 18, 2019, at 10 a.m., in the Commission's second floor courtroom located in the Tyler Building, 1300 East Main Street, Richmond, Virginia 23219, to receive the testimony of public witnesses and the evidence of APCo, any respondents, and the Commission's Staff. Any person desiring to testify as a public witness should appear at the hearing location fifteen (15) minutes before the starting time on the day of the hearing and contact the Commission's Bailiff. Copies of the public version of all documents filed in this case are available for interested persons to review in the Commission's Document Control Center, located on the first floor of the Tyler Building, 1300 East Main Street, Richmond, Virginia 23219, between the hours of 8:15 a.m. and 5 p.m., Monday through Friday, excluding holidays. Interested persons also may download unofficial copies from the Commission's website: http://www.scc.virginia.gov/case. Copies of the Petition and other supporting materials also may be inspected during regular business hours at each of the Company's business offices in the Commonwealth of Virginia. Interested persons also may obtain a copy of the Petition 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. If acceptable to the requesting party, the Company may provide the documents by electronic means. On or before December 11, 2019, any interested person may file written comments on the Petition with Joel H. Peck, Clerk, State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218-2118. Interested persons desiring to submit comments electronically may do so on or before December 11, 2019, by following the instructions found on the Commission's website, http://www.scc.virginia.gov/case. Compact disc or any other form of electronic storage medium may not be filed with the comments. All comments shall refer to Case No. PUR-2019-00038. Any person or entity may participate as a respondent in this proceeding by filing a notice of participation on or before September 20, 2019. If not filed electronically, an original and fifteen (15) copies of the notice of participation shall be submitted to the Clerk of the Commission at the address set forth above. A copy of the notice of participation as a respondent also must be sent to counsel for the Company at the address set forth above. Pursuant to Rule 5 VAC 5-20-80 B, Participation as a respondent, of the Commission's Rules of Practice and Procedure ("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 Rule 5 VAC 5-20-30, Counsel, of the Rules of Practice. All filings shall refer to Case No. PUR-2019-00038. For additional information about participation as a respondent, any person or entity should obtain a copy of the Commission's Order for Notice and Hearing. All documents filed with the Office of the Clerk of the Commission in this docket may use both sides of the paper. In all other respects, 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 Commission's Rules of Practice may be viewed at: http://www.scc.virginia.gov/case. A printed copy of the Commission's Rules of Practice and an official copy of the Commission's Order for Notice and Hearing in this proceeding may be obtained from the Clerk of the Commission at the address set forth above. APPALACHIAN POWER COMPANY

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