by Steve Haner

Citing the high cost, the Virginia State Corporation Commission on Friday denied a request to add a battery project to the Appalachian Power Company grid. In the same decision, anย out-of-state wind project forย Appalachianย was approved, but only if it qualifies for major federal tax creditsย to keep down the cost.ย ย ย
Without those tax credits, set to expire under legislation signed by President Donald Trump, the 261-megawatt wind project in Illinois that Appalachian plans to buy will also be too expensive to justify, the SCC ruled. Any cost overrun on the $1 billion plus construction cost will also void the Commissionโs permission for Appalachian to buy the turbines, being built by another company.ย
The rulings were part of Appalachianโs annual proposal for adding non-carbon emitting energy projects to comply with the Virginia Clean Economy Act (VCEA). The Commissionโs order, and a more extensive discussionย inย the September 26ย reportย from its hearing examiner, D. Mathias Roussy, highlight the growing costsย ofย VCEAย compliance.ย ย ย
Appalachian serves about 550,000 customers in Western Virginia, and most of its power generation is done out of state. Under the VCEA, it must move toward ending its use of coal, natural gas, or oil to make electricity.ย ย
The application also updated the ongoing costs of previously approved VCEA-compliant Appalachian facilities mandated by the Virginia Clean Economy Act, and one small solar addition. Those portions of the application were approved, and Appalachian customer bills will rise on March 1, 2026, to pay for them.ย










