RICHMOND — The State Corporation Commission (SCC) has
approved a request by Appalachian Power Company to recover $6.3 million in costs
for participation in a renewable energy portfolio standard (RPS) program. The rate
adjustment will become effective for service rendered on or after February 1, 2012.
The costs were associated with the company’s two wind purchase power agreements,
Camp Grove and Fowler Ridge.
The Commission found that the incremental costs of these agreements are properly
recoverable through the RPS rate adjustment as proposed by the company. The SCC
also found that it is reasonable to recover the non-incremental costs of the Camp
Grove and Fowler Ridge purchase power agreements through the company’s fuel factor.
Several public witnesses questioned recovery through the RPS rate adjustment of
costs for renewable energy produced outside of Virginia. The Commission found that
the Code of Virginia does not permit it to deny cost recovery on such grounds.
The SCC directed Appalachian Power to file its next RPS rate adjustment on or before
September 30, 2012.
Case Number PUE-2011-00034