Compliance with the 2020 Virginia Clean Economy Act will result in a 49% increase in monthly costs by 2035 for residential customers of the Appalachian Power Company, according to a State Corporation Commission staff analysis. That’s a $57 increase on a typical 2020 residential bill of $117.
Rates on the largest industrial users are likely to climb 76% in the same period. In later years additional costs adding to bills are probable, as the company works toward its 2050 mandatory goal of carbon-free electricity generation.
Appalachian serves about 500,000 customer accounts in western Virginia, with most of the generation it uses to serve them located outside Virginia. It is not proposing the same level of investment in new renewable generation as the larger Dominion Energy Virginia, which serves the bulk of Virginia, now focused on its $10 billion offshore wind proposal. Yet the long-term rate impact of VCEA for Appalachian customers is still substantial.
The SCC will hold hearings later this month on Appalachian’s proposed VCEA compliance plan, its second such annual review (the docket is here.) Continue reading