Appalachian Power seeks approval, cost recovery for renewable energy projects in West Virginia

Appalachian Power and Wheeling Power submitted two filings to the Public Service Commission of West Virginia this week to pursue approval and cost recovery for renewable energy projects coupled with a Renewable Power Plus (RPP) tariff.

“In 2020, state political leaders passed renewable energy legislation, Senate Bill 583, touting it as an important tool to recruit businesses with sustainability goals to West Virginia without displacing coal-fired generation,” Chris Beam, Appalachian Power president and COO, said. “Having renewable energy in the mix was a key factor in Nucor Corporation’s recent decision to locate its $2.7 billion steel mill in the state. In fact, between Nucor’s commitment and interest from existing large energy users, we can fully subscribe the West Virginia share of energy from the renewable projects we are filing today and still need more.”

Appalachian sees the tariff as a critical path to attracting larger companies with Environmental, Social and Governance (ESG) needs while offering stable cost options for existing customers. Ideally, subscribing customers would pay for the cost of renewable projects and offset the cost of service benefits they produce, shielding other customers and, potentially, reducing West Virginia customer rates by as much as $22 million.

Of these filings, one seeks approval and cost recovery for the proposed 50 MW Bedington solar project at a brownfield site in Berkeley County. The other includes a 204 MW wind energy project in Logan County, Ill., a 150 MW solar facility in Pittsylvania County, Va., and a 4.9 MW solar project in Amherst County, Va. All three of the latter would be owned by the company outright. They would be coupled with power purchase agreements for the 89 MW of power supplied by three additional Virginia solar facilities.

Bedington’s jurisdictional costs would be paid for by the new West Virginia Solar rider, which implemented a construction surcharge until new base rates are implemented. On the other hand, the costs of the PPA solar facilities would be recovered as normal through the Expanded Net Energy Cost.

Filing for these projects was previously made with the Virginia State Corporation Commission, along with cost recovery of the Virginia jurisdictional share of those projects.