Regulatory Proceedings : West Virginia

Public Utility Commission Website http://www.psc.state.wv.us/

Power Supply Plan

Docket Number: 14-0546-E-PC
Overview

On March 4, 2014, Appalachian Power Company (APCo) and Wheeling Power Company (WPCo) filed an updated plan to serve the load of WPCo as directed by the WVPSC’s order of December 13, 2013. The Companies propose to serve the WPCo load by transferring a one-half interest in the Mitchell Plant and associated facilities to WPCo. The one-half interest in the Mitchell Plant is currently owned by AEP Generation Resources, Inc. (AGR) with the other one-half interest owned by another AEP subsidiary, Kentucky Power Company (KPCo). KPCo currently operates the plant and will continue to do so after the proposed transfer is approved.

The Companies propose that the transfer be accomplished with a transfer price of the then-existing net book value, at which time the current contract to serve load between AGR and WPCo would terminate.

The Companies propose a closing at or around June 30, 2014 and in order to accommodate a June 30, 2014 closing, the Companies request a final order by June 13, 2014.

Procedural Schedule: Staff and Intervenor Testimony 8/29/2014
Rebuttal Testimony 9/12/2014
Hearing 9/17-19, 2014
Initial Briefs 10/03/2014
Reply Briefs 10/10/2014

Base Rate Case

Docket Number: 14-1152-E-42T
Overview

On June 30, 2014, Appalachian Power (APCo) and Wheeling Power (WPCo) filed a base rate case with the Public Service Commission of West Virginia (WVPSC). The filing requests a total increase of $226 million. The increase is comprised of $181 million from a traditional cost of service test year determination and $45 million from a proposed surcharge for the vegetation management program that was previously approved by the WVPSC.

Rates proposed in this filing are based on a December 31, 2013 test year with projected adjustments 12 months thereafter. The requested ROE is 10.62%. The WVPSC can order the suspension of new base rates for a period of up to 270 days. Based on this, new base rates could go into effect on or about April 26, 2015.

Procedural Schedule: TBD
Key Components: Requested ROE: 10.62%
Requested ROR: 7.794%
Requested APCo Rate Base: $3,274M
Requested WPCo Rate Base: $719M
Requested Revenue Increase: $226M