On August 30, 2024, Appalachian Power Company (“APCo” or “Company”) filed with the State Corporation Commission
(“Commission”) a petition (“Petition”), pursuant to § 56-594 E of the Code of Virginia (“Code”) and the Commission’s order in
Case No. PUR-2024-00047 (“Net Metering Order”), for approval of proposed revisions to its net energy metering (“net metering”)
program. The Net Metering Order required APCo’s Petition to address, analyze, and provide prefiled testimony and data to
support certain items identified therein as they relate to net metering, consistent with the requirements of Code § 56-594 E.
This included, in part, a proposed rate structure related to net metering to govern compensation related to all eligible customergenerators, eligible agricultural customer-generators, and small agricultural generators, except low-income utility customers, that
interconnect after the effective date established in the Commission’s final order in the net metering proceeding. The Company
asserts that its Petition and supporting direct testimony address each of the required net metering considerations laid out in the
statute and in the Commission’s Net Metering Order. Pursuant to Code § 56-594 E, the Commission must issue a final order
regarding the Petition no later than 12 months after this proceeding commences.
In its Petition, APCo proposes to close its current Rider Net Metering Service (“Rider N.M.S.”) to all new customer-generators
as of the rate effective date set in this case and introduce a new net metering credit compensation structure, designated Rider
N.M.S. II. Under proposed Rider N.M.S. II, APCo proposes to charge customer-generators for all metered energy the Company
provides during each monthly billing period at standard tariff rates and to credit customer-generators for all the metered energy
the Company receives at an avoided cost approved by the Commission. The Company represents that only customer-generators
whose electric generating facility receives a Certificate of Completion after Rider N.M.S. II would become effective will be subject
to this proposed rate structure, while existing Rider N.M.S. customer-generators and those who submit applications and receive
a Certificate of Completion before Rider N.M.S. II takes effect will be grandfathered under the current Rider N.M.S. for up to
25 years. APCo states that under the proposed Rider N.M.S. II, all metered energy delivered to the Company’s distribution
system via the meter installed at a customer-generator’s premise will be credited to the customer-generator’s monthly bill at the
Company’s avoided cost rate, summarized in the table below:
The Company represents that the changes proposed in Rider N.M.S. II will appropriately credit net metering customergenerators for the energy they deliver to the grid at the avoided cost to non-participating customers, while ensuring they are paying
for the distribution, transmission, and capacity facilities and other services that they rely on when they are not self-generating in
full or using the Company’s infrastructure to export excess energy.
The Company states that using its economic modeling and analytics software, it has concluded that the economic impacts
of net metering within APCo’s service territory vary. The Company represents that the current net metering rate structure, in place
under Rider N.M.S., credits customer-generators with “full retail rate” netting, which compensates customer-generators for energy
delivered to the grid at a rate that exceeds the value provided to the grid by their renewable energy systems. APCo states that
it is proposing a cost-based compensation structure which the Company asserts would render the need for a net metering cap
unnecessary. The Company states that if the full retail rate compensation is maintained as it currently is, there will be inequitable
cross-subsidization. APCo asserts that if the full retail rate compensation is maintained, then the Commission should consider
reducing the current six percent cap on net metering.
The Company requests that the Commission approve its proposed revisions to its net metering program and Rider N.M.S.
and the Company’s proposed Rider N.M.S. II.
TAKE NOTICE that the Commission may 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 APCo’s
Petition. On May 20, 2025, at 10 a.m., the Commission will hold the telephonic portion of the hearing for the purpose of receiving
the testimony of public witnesses. On or before May 13, 2025, any person desiring to offer testimony as a public witness shall
provide to the Commission (a) your name, and (b) the telephone number that you wish the Commission to call during the hearing
to receive your testimony. This information may be provided to the Commission in three ways:(i) by filling out a form on the
Commission’s website at scc.virginia.gov/pages/Webcasting; (ii) by completing and emailing the PDF version of this form to
SCCInfo@scc.virginia.gov; or (iii) by calling (804) 371-9141. This public witness hearing will be webcast at scc.virginia.gov/pages/
Webcasting.
On May 20, 2025, at 10 a.m. or at the conclusion of the public witness portion of the hearing, whichever is later, in the
Commission’s second floor courtroom located in the Tyler Building, 1300 East Main Street, Richmond, Virginia 23219, the
Commission will convene a hearing to receive testimony and evidence related to the Petition from the Company, any respondents,
and the Commission’s Staff.
To promote administrative efficiency and timely service of filings upon participants, the Commission has directed the
electronic filing of testimony and pleadings, unless they contain confidential information, and has required electronic service on
parties to this proceeding.
Electronic copies of the Petition may be obtained by submitting a written request to counsel for the Company: Noelle J. Coates,
Esquire, American Electric Power Service Corporation, 3 James Center, 1051 East Cary Street, Suite 1100, Richmond, Virginia
23219, or njcoates@aep.com. Interested persons also may download unofficial copies of the Petition and other documents filed
in this case from the Commission’s website: scc.virginia.gov/pages/Case-Information.
On or before May 13, 2025, any interested person may submit comments on the Petition by following the instructions found
on the Commission’s website: scc.virginia.gov/casecomments/Submit-Public-Comments. Those unable, as a practical matter,
to submit comments electronically may file such comments with the Clerk of the State Corporation Commission, c/o Document
Control Center, P.O. Box 2118, Richmond, Virginia 23218-2118. All comments shall refer to Case No. PUR-2024-00161.
On or before February 11, 2025, any person or entity wishing to participate as a respondent in this proceeding may do so
by filing a notice of participation at scc.virginia.gov/clk/efiling. Those unable, as a practical matter, to file a notice of participation
electronically may file such notice by U.S. mail to the Clerk of the Commission at the address listed above. Such notice of
participation shall include the email addresses of such parties or their counsel. The respondent shall send a copy of the notice of
participation on counsel to the Company. 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. Any organization, corporation, or government body participating as a respondent must be represented by counsel as
required by 5 VAC 5-20-30, Counsel, of the Rules of Practice. All filings shall refer to Case No. PUR-2024-00161.
On or before March 11, 2025, each respondent may file with the Clerk of the Commission, at scc.virginia.gov/clk/efiling, any
testimony and exhibits by which the respondent expects to establish its case. Any respondent unable, as a practical matter, to file
testimony and exhibits electronically may file such by U.S. mail to the Clerk of the Commission at the address listed above. Each
witness’s testimony shall include a summary not to exceed one page. All testimony and exhibits shall be sent to the Company,
Staff, and all other respondents. In all filings, respondents shall comply with the Commission’s Rules of Practice, as modified
herein, including, but not limited to: 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-2024-00161.
Any documents filed in paper form with the Office of the Clerk of the Commission in this docket may use both sides of the
paper. In all other respects, except as modified by the Commission’s Order for Notice and Hearing, 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 Company’s Petition, the Commission’s Rules of Practice, the Commission’s Order for Notice and Hearing, and other
documents filed in this case may be viewed on the Commission’s website at: scc.virginia.gov/pages/Case-Information.
NOTICE TO THE PUBLIC OF A PETITION OF
APPALACHIAN POWER COMPANY
FOR APPROVAL TO REVISE ITS NET METERING PROGRAM
PURSUANT TO § 56-594 OF THE CODE OF VIRGINIA
CASE NO. PUR-2024-00161
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