RICHMOND — The State Corporation Commission (SCC) will not reconsider the application by Appalachian Power Company (APCo) to build a coal-fired power plant in West Virginia. In April, the SCC denied APCo’s request for a rate increase to begin recovering construction costs for the new plant from its Virginia customers, and APCo asked the SCC to reconsider its decision.

As explained in its April final order, the SCC said, “APCo’s application asked this Commission to give it a blank check to be paid by the ratepayers of Virginia … for a power plant of unproven development and implementation at the size and for the purpose proposed by APCo.” The Commission added, “… [w]e cannot ask Virginia ratepayers to bear the enormous risks – and potential huge costs – of these uncertainties in the context of the specific application before us.”

APCo received approval from the Public Service Commission of West Virginia in March to build the proposed 629-megawatt generating facility in Mason County, West Virginia. The projected cost of the Integrated Gasification Combined Cycle plant is approximately $2.23 billion, of which $1 billion would be allocated to Virginia customers.

The SCC said, “While we have the utmost respect for the actions of other state commissions, … our statutory duty is to apply Virginia law. The actions of another state commission do not override Virginia law nor nullify our duty to apply Virginia law. APCO knows – or should know – this basic truism.”

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Case Number PUE-2007-00068

Order on Reconsideration