Details for APPALACHIAN POWER / VPS

Updated

Legal Notice
NOTICE TO THE PUBLIC OF A PETITION BY
APPALACHIAN POWER COMPANY, FOR APPROVAL TO CONTINUE RATE
ADJUSTMENT CLAUSE, THE EE-RAC, AND FOR APPROVAL OF NEW ENERGY EFFICIENCY PROGRAMS
PURSUANT TO §§ 56-585.1 A 5 c AND 56-596.2
OF THE CODE OF VIRGINIA
CASE NO. PUR-2019-00122
•Appalachian Power Company (“APCo”) requests a total of $9,695,615 for its 2020 EE-RAC. According to APCo, this amount would
increase the bill of a residential customer using 1,000 kilowatt hours per month by approximately $0.30.
•A Hearing Examiner appointed by the Commission will hear the case on March 3, 2020, at 10 a.m.
•Further information about this case is available on the SCC website at: http://www.scc.virginia.gov/case.
On September 30, 2019, Appalachian Power Company (“APCo” or “Company”), pursuant to §§ 56-585.1 A 5 and 56-596.2 of the Code of
Virginia (“Code”) and the Final Order of the State Corporation Commission (“Commission”) in Case No. PUR-2018-00118, filed with the
Commission its Petition for approval of the continued implementation of a rate adjustment clause – the “EE-RAC” – to recover the costs of its
proposed energy efficiency (“EE”)/demand response (“DR”) portfolio (“EE/DR Portfolio”), as well as for the approval of three new programs.
In its Petition, APCo seeks approval to implement three new energy efficiency and demand response programs. Specifically, the Company
requests that the Commission permit it to implement the following proposed EE programs for a five-year period starting January 1, 2021, and
subject to future extensions as requested by the Company and if granted by the Commission:
•
•
•

ENERGY STAR® Manufactured Housing Program
Low Income Multifamily Program
Low Income Single Family Program

APCo requests approval to continue the EE-RAC for the rate year of July 1, 2020, through June 30, 2021 (“2020 Rate Year”) to recover: (i)
2020 Rate Year costs associated with the Company’s EE/DR programs (“Projected Factor”); and (ii) any (over)/under recovery of costs associated with the EE/DR Portfolio as of June 30, 2020 (“True-Up Factor”). APCo calculated the margin on operating expenses for the Projected
Factor based on a return on common equity of 9.42%, authorized by the Commission in Case No. PUR-2018-00048. The Company proposes
a total EE-RAC revenue requirement of $9,695,615 for the 2020 Rate Year, which consists of a Projected Factor in the amount of $10,584,787,
and a True-Up Factor credit of $889,172. APCo is not seeking recovery of lost revenues in this proceeding.
If the proposed EE-RAC for the 2020 Rate Year is approved, the impact on customer bills would depend on the customer’s rate schedule and
usage. According to the Company, implementation of the proposed EE-RAC would increase the monthly bill of a residential customer using
1,000 kilowatt hours per month by approximately $0.30. For calculating the proposed EE-RAC rates, the Company has allocated the costs of
the proposed EE/DR Portfolio to the Virginia tariff classes in accordance with the methodology approved in the 2015 EE-RAC Order, and has
updated the allocators and billing determinants used to develop class revenue requirements for the year ending December 31, 2018, per the
Commission’s Final Order in Case No. PUE-2016-00089.
The Company also states that it adjusted billing determinants to exclude those Commercial and Industrial (“C&I”) customers with demands
greater than 10 MW, which are exempt from the EE-RAC pursuant to Code § 56-585.1 A 5 c. It also adjusted the billing determinants to
exclude C&I customers with demands between 500 kW and 10 MW that have filed a notice of nonparticipation with the Company and the
Commission’s Division of Public Utility Regulation. Finally, the Company states that it adjusted its rate design for C&I customers to reflect
recent movement by C&I customers from Tariff Large General Service (“LGS”) and Medium General Service (“MGS”) to Tariff General
Service (“GS”). The Company indicates that it designed the EE-RAC rates so that low load factor customers will pay the same amount for the
EE-RAC under Tariffs MGS and GS, and medium/high load factor customers will pay the same amount for the EE-RAC under Tariffs GS and
LGS.
Interested persons are encouraged to review the 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’s Petition and
supporting documents.
The Commission entered an Order for Notice and Hearing that, among other things, scheduled a public hearing on March 3, 2020, 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
testimony from members of the public on the Company’s Petition. At this public hearing, evidence related to the Petition also will be received
from the Company, any respondents, and the Commission’s Staff. Any person desiring to testify as a public witness at this hearing should
appear in the Commission’s courtroom fifteen (15) minutes prior to the starting time of the hearing and contact the Commission’s Bailiff.
The public version of the Company’s Petition, as well as the Commission’s Order for Notice and Hearing, are available for public inspection
during regular business hours at each of the Company’s business offices in the Commonwealth of Virginia. Copies also may be obtained by
submitting a written request to counsel for the Company, Noelle J. Coates, Esquire, 3 James Center, American Electric Power Service Corporation, 1051 East Cary Street, Suite 1100, Richmond, Virginia 23219. If acceptable to the requesting party, the Company may provide the
documents by electronic means.
Copies of the public version of the Petition and other documents filed in this case also 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.
On or before February 25, 2020, any interested person wishing to comment on the Company’s Petition shall 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.
Any interested person desiring to file comments electronically may do so on or before February 25, 2020, by following the instructions on the
Commission’s website: http://www.scc.virginia.gov/case. Compact disks or any other form of electronic storage medium may not be filed
with the comments. All such comments shall refer to Case No. PUR-2019-00122.
On or before December 17, 2019, any person or entity wishing to participate as a respondent in this proceeding may do so by filing a notice of
participation. 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 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 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. All filings shall refer to Case No. PUR2019-00122. 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.
On or before January 14, 2020, each respondent may file with the Clerk of the Commission, and serve on the Commission’s Staff, the Company, and all other respondents, any testimony and exhibits by which the respondent expects to establish its case, and each witness’s testimony
shall include a summary not to exceed one page. If not filed electronically, an original and fifteen (15) copies of such testimony and exhibits
shall be submitted to the Clerk of the Commission at the address above. Respondents also shall comply with the Commission’s Rules of
Practice, 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-2019-00122.
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 above.
APPALACHIAN POWER COMPANY

11529 NUCKOLS RD, GLEN ALLEN, VA 23059

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