RICHMOND — The State Corporation Commission (SCC) has set separate procedural schedules for two rate adjustments requested by Appalachian Power Company. Each request has its own dates for submitting written comments and the public hearing to receive testimony. Neither proposed rate adjustment can occur without a further order of the Commission.

The first request has been assigned case number PUE-2007-00068. It involves the company’s request to recover projected costs in conjunction with the planned construction of a 629-megawatt clean-coal power plant in Mason County, West Virginia. Approximately $1 billion of the project’s $2.23 billion cost is proposed to be allocated to the company’s Virginia customers.

The company seeks to impose a surcharge on monthly bills to collect anticipated finance charges and other construction costs through the end of 2009. The Commission is also being asked to determine that construction of the clean-coal facility is reasonable and prudent. The plant is expected to be operational in 2012.

Appalachian Power’s application falls under new legislation adopted by the 2007 General Assembly that grants a utility that constructs such a facility the right to recover such costs. As an incentive to undertake such projects, the legislation also allows an enhanced rate of return during construction and the first 10-20 years of the facility’s service life.

In its scheduling order, the Commission directed the company to file additional cost information regarding the project or explain why the company believes it does not need to do so. The Commission cites as a basis for its request an earlier Virginia law that requires the Commission to find that generation facilities proposed for construction are “necessary to enable the public utility to furnish reasonably adequate service and facilities at reasonable and just rates.”

The hearing on this request is set for Tuesday, February 12, 2008, at 10 a.m. The deadline for submitting written comments is February 6, 2008. (See instructions for doing so at end of news release).

The second request has been assigned case number PUE-2007-00069. It involves Appalachian Power’s request to recover environmental and reliability (E&R) costs incurred from October 2005 until September 2006. Monthly bills to customers currently carry a surcharge for such E&R costs that were incurred from July 2004 through September 2005. The request would adjust and continue the surcharge through November 2008. Currently set to expire the end of November 2007, the company estimates the requested surcharge adjustment would increase customer bills by approximately 3.5 percent.

The hearing on this request is set for Monday, November 5, 2007, at 10 a.m. The deadline for submitting written comments is October 31st.

A third company request to adjust its fuel rate is awaiting a scheduling order. The request involves the portion of the monthly utility bill that recovers the cost of fuel used to generate electricity. The company estimates the requested new fuel rate, if approved, would increase customer bills by 4.7 percent.

Commission hearings are held in the SCC’s second floor courtrooms located in the Tyler Building, 1300 East Main Street. Persons interested in testifying should arrive early and sign in with the Commission bailiff.

The public may view the company’s application and related documents during regular business hours at the SCC’s Document Control Center, First Floor, Tyler Building, 1300 East Main Street, Richmond. Interested persons may also access a copy of the application through the SCC’s Docket Search portal at www.scc.virginia.gov/case/.

All written comments should be sent to the Clerk of the State Corporation Commission, Document Control Center, P.O. Box 2118, Richmond, Virginia 23218-2118; refer to appropriate case number; and sent prior to the established deadline for each case.

Interested persons desiring to submit comments electronically may do so at the SCC’s website: www.scc.virginia.gov/case/. Click on the PUBLIC COMMENTS/NOTICES link and then the SUBMIT COMMENTS button for this case.

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Case numbers: PUE-2007-00068, PUE-2007-00069