SCC News

RICHMOND – The State Corporation Commission (SCC) approved a revised fuel rate for customers of Appalachian Power Company (APCo) that includes a mitigation proposal that would spread the recovery of its $361,411,867 deferred fuel balance over two years. The fuel rate increase has been in effect on an interim basis, subject to further modification, since November 1, 2022, and no additional changes were approved. For a residential customer using 1,000 kilowatt-hours of electricity per month, it represents an increase to the average monthly bill of $20.17. Without the mitigation proposal, however, the increase would have been $33.24 per month for the same usage.

The fuel rate is the portion of the electric bill that pays for the fuel used to generate electricity and costs associated with power purchased by the utility company to serve its customers.

In its final order, the Commission stated: “… we are deeply concerned about the significant rate increase requested in this case, and its impact on customer bills. The impact of the increase is worsened by its introduction during the winter months, which are typically higher usage months, and by other recent APCo rate increases. We are mindful of the numerous public comments and concerns expressed about the impact of such rate increases on APCo’s customers and have reviewed this matter carefully. APCo is, however, entitled by law to recover its prudently incurred fuel costs…”

The Commission directed the SCC staff to conduct a fuel audit for the period from January 1, 2019, to December 31, 2022, and to include the results of the fuel audit in its pre-filed testimony in APCo’s next fuel factor proceeding. As part of the fuel audit, the Commission directed Staff to analyze the reasonableness of APCo’s coal procurement activities.

The Commission also directed APCo to take additional steps within 60 days of its order to advise customers how they may contact APCo for bill assistance and to set up budget billing for their accounts.

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Contact: Ford Carson, 804-371-9141

Case Number PUR-2022-00139
View Final Order

RICHMOND – The State Corporation Commission (SCC) has concluded a revised triennial review of the base rates for Appalachian Power Company that reduces the annual rate increase that has been in effect on an interim basis since October 1, 2022.

For a residential customer using 1,000 kilowatt-hours of electricity a month, the new rates result in a monthly charge of approximately $6.00 compared to the interim charge of $8.55. Appalachian Power will submit revised tariffs to the SCC that recalculate the bill impact of the application of the new rates and refund the difference with interest to customers within 90 days of the Commission order. 

In August, the Supreme Court of Virginia found that the SCC did not have the authority last year to decide whether it was reasonable for Appalachian Power to include costs associated with the closure of several coal-fired plants in its accounting expenses between 2017 and 2019. The Commission had found that the costs, called an asset impairment charge, were unreasonable.

The Court directed the SCC to revise its final decision in the triennial review and remanded the case to the Commission for further proceedings.

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Contact: Andy Farmer, 804-371-9141

Case Number PUR-2020-00015 - Application of Appalachian Power for a 2020 triennial review of its base rates, terms, and conditions

Order on Remand - 12/21/2022

RICHMOND – The State Corporation Commission (SCC) has accepted a replacement for the performance standard in the Commission’s August 5, 2022, final order approving the application for the Coastal Virginia Offshore Wind Project by Dominion Energy Virginia.

In an Order on Reconsideration, the SCC approved a stipulation proposed by Dominion, the Office of the Attorney General’s Division of Consumer Counsel, Walmart, Inc., Appalachian Voices, and the Sierra Club that replaces the performance standard with five elements addressing, among other things, construction cost and carrying cost sharing, operating performance provisions, impact of the federal Inflation Reduction Act, and the scope of the agreement.

In approving the stipulation, the Commission stated that it has not otherwise expanded, or modified approval or cost recovery set forth in the August 5 final order. The SCC further noted that those proposing the stipulation “assert, unanimously in support thereof, that the [ ] Stipulation adequately protects the interests of consumers. In addition, Clean Virginia and the Committee, though not formal parties to the [ ] Stipulation, confirm that they have no opposition to the Commission's approval thereof.”

In its order, the Commission reiterated the significant impact that this project will have on customers’ electric bills. The project likely represents the largest capital investment, and single largest project, in the history of the Company. “[T]he electricity produced by this Project will be among the most expensive sources of power – on both a per kilowatt of firm capacity and a per megawatt-hour basis – in the entire United States,” the SCC stated.

In a concurring opinion, Commissioner Jagdmann wrote that she agrees with the Order on Reconsideration in all respects. She emphasized that the General Assembly is uniquely positioned to align some of the costs of the project that currently will be paid solely by most of Dominion customers with the economic development benefits and clean energy attributes of this project that the operative statutes recognize advantage the Commonwealth more broadly:

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Contact: Andy Farmer, 804-371-9141

Case Number PUR-2021-00142 - Application of Dominion Energy Virginia for approval and certification of the Coastal Virginia Offshore Wind Project

Order on Reconsideration - 12/15/2022

RICHMOND – The State Corporation Commission (SCC) has approved bringing a new area code – 686 - to Virginia regions now served by the 804 area code. It is expected that the 804 area code could run out of available numbers during the third quarter of 2024.

The SCC approved a proposal by the North American Numbering Plan Administrator for an all-services distributed overlay of the new 686 area code for the 804 area code region. The new area code will be superimposed over the same geographic region covered by the current 804 area code. That region encompasses portions of Central Virginia and the Northern Neck including Richmond, Petersburg, Ashland, Charles City, Chesterfield, Columbia, Hague, Henrico, New Kent, Reedville and Water View.

Existing customers will keep their 804 area code and seven-digit telephone number. Phone numbers in the new 686 area code will not be assigned until all available phone numbers in the 804 area code are exhausted.

Implementation of the new area code overlay will be completed by early 2024, which is six months prior to the anticipated 804 area code exhaust. The relief provided by the new 686 area code is expected to last approximately 32 years.

The 804 area code already transitioned to mandatory 10-digit dialing (three-digit area code plus seven-digit phone number) in July 2022 due to the national implementation of 988, the new three-digit abbreviated dialing code for the National Suicide Prevention Lifeline.

To learn more about 804 area code relief, visit scc.virginia.gov/pages/Public-Utility.

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Contact: Katha Treanor, 804-371-9141
Case number PUR-2022-00083

RICHMOND – The State Corporation Commission (SCC) directed investor-owned electric utilities and electric cooperatives to address federal grant opportunities in Virginia’s utility infrastructure under the Infrastructure Investment and Jobs Act (IIJA) for the benefit of customers. The Commission also invited other interested parties to file comments. The IIJA creates a program of federal financial assistance to promote electric utility investments in advanced generation, transmission, and distribution technologies.

The IIJA provides grants for electric vehicle charging infrastructure, hydrogen fueling infrastructure, and other fueling infrastructures, as well as grid hardening activities to reduce the occurrence of – or consequences of – events that disrupt operations of the electric grid due to extreme weather, wildfire, or natural disasters.

The IIJA also establishes loans under a transmission facilitation program; additional funding for the Smart Grid Investment Matching Grant Program; incentive payments to qualifying hydroelectric facilities; financial assistance for a demonstration project for pumped storage hydropower for intermittent renewable energy; additional funding for various demonstration and pilot projects; and programs to develop carbon capture technology to improve environmental performance of coal and natural gas use.

The public must submit written comments by February 2, 2023. Written comments may be submitted through the SCC’s website at scc.virginia.gov/casecomments/Submit-Public-Comments. Simply go to the SCC website, select "Cases" and then "Submit Public Comments," and scroll down to case number PUR-2022-00180. Then click SUBMIT COMMENTS.

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Contact: Ford Carson, 804-371-9141

Case Number: PUR-2022-00180

RICHMOND – The State Corporation Commission (SCC) has approved two programs that allow customers of Dominion Energy Virginia the opportunity to participate in shared solar initiatives. Under a shared solar program, a customer purchases a subscription for a certain amount of the kilowatt-hour (kWh) electricity produced by a solar facility.

During the 2020 session of the Virginia General Assembly, legislation was enacted directing the SCC to establish a multi-family shared program (Code § 56-585.1:12) and a separate shared solar program (Code § 56-594.3).

In Case Number PUR-2020-00124, the SCC approved the multi-family shared solar program for Dominion customers. Under this program, the solar facility is located on or adjacent to a multi-family dwelling (such as an apartment complex). Customers in that multi-family dwelling can subscribe to a portion of the kWh output of the solar facility located next to the dwelling. Customers receive a credit on their utility bill, based on Dominion's full retail rate, for the kWh amount of the customer's shared solar subscription.

In Case Number PUR-2020-00125, the Commission issued an order confirming its prior approval of a separate shared solar program. Under this program, the solar facility can be located anywhere in Dominion's territory, and customers of Dominion can subscribe to a portion of the kWh output of this solar facility regardless of the customer's location.

These customers also receive a credit on their utility bill, based on Dominion's full retail rate, for the kWh amount of the customer's shared solar subscription. In addition, because Dominion still delivers the solar facility's kWh to these customers, the statute creating this Shared Solar Program directs the Commission "to ensure [these] customers pay a fair share of the costs of providing electric services." (Code § 56-594.3 D)

Thus, customers in this program also pay for costs to deliver the solar facility's kWh to the customer. Finally, as also required by statute, low-income customers that participate in this Shared Solar Program are exempted from paying these kWh delivery charges.

Contact: Andy Farmer, 804-371-9141

Case Number PUR-2020-00124 – In the matter of establishing regulations for a multi-family shared solar program pursuant to § 56-585.1:12 of the Code of Virginia
Case Number PUR-2020-00125 – In the matter of establishing regulations for a shared program pursuant to § 56-594.3 of the Code of Virginia 

RICHMOND – The State Corporation Commission (SCC) is offering time for members of the public to give oral comments by telephone on an application by Appalachian Power Company to increase its fuel factor for usage on and after November 1, 2022.

Appalachian Power’s application requests approval to recover the company's estimated Virginia jurisdictional fuel expenses of approximately $416,140,161 for the November 1, 2022, through October 31, 2023, fuel year, and its projected October 31, 2022, fuel deferral balance of $361,411,867, subject to its mitigation proposal.

The company’s mitigation proposal would spread recovery of the projected fuel deferral balance over two years.

For a residential customer using 1,000 kilowatt-hours per month, the average weighted monthly bill would increase by $20.17, from $127.81 to $147.98 under the Company’s proposal. The Commission has permitted the Company to place the proposal into effect on an interim basis, subject to further modification, effective November 1, 2022.

The SCC has scheduled a public witness session to begin at 10 a.m. on December 13, 2022. Public witnesses intending to provide oral testimony must pre-register with the SCC by 5 p.m. on December 7, 2022. The hearing will be webcast at: scc.virginia.gov/pages/Webcasting.

Public witnesses wishing to provide oral testimony may pre-register in one of three ways:

• Completing a public witness form for case number PUR-2022-00139 on the SCC’s website at: scc.virginia.gov/pages/Webcasting
• E-mailing the same form (PDF version on the same website as above) to SCCInfo@scc.virginia.gov
• Calling the SCC at 804-371-9141 during normal business hours (8:15 a.m. – 5 p.m.) and providing your name and the phone number you wish the Commission to call to reach you during the hearing.

A public evidentiary hearing will follow the public witness hearing at 10 a.m. on December 14, 2022, in the SCC’s second floor courtroom at 1300 East Main Street in Richmond to receive testimony and evidence from the company, any respondents and the SCC staff.

For those who prefer, there is also an opportunity to provide comments in writing on the Appalachian Power application. Written comments may be submitted through the SCC’s website by December 6, 2022, at scc.virginia.gov/casecomments/Submit-Public-Comments. Simply go to the SCC website, select "Cases" and then "Submit Public Comments," and scroll down to case number PUR-2022-00139. Then click SUBMIT COMMENTS.

Comments can also be submitted by U.S. mail to the Clerk of the State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218-2118. All comments must refer to case number PUR-2022-00139.

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Contact: Ford Carson, 804-371-9141

Case Number PUR-2022-00139 – Appalachian Power Company application to revise its fuel factor

RICHMOND – Every three hours in the United States, a person or vehicle is hit by a train, according to Operation Lifesaver, Inc. (OLI), a nonprofit organization dedicated to rail safety education. During Rail Safety Week – September 19-25, 2022 – the State Corporation Commission (SCC) is pleased to join forces with OLI, state Operation Lifesaver programs and other rail safety partners throughout North America to raise awareness about the need for pedestrians, motorists, bicyclists and others to stay safe around railroad tracks and crossings.

Lauren Govoni, director of the SCC’s Division of Utility and Railroad Safety (Division), and Virginia Operation Lifesaver Coordinator Tracey Lamb encourage Virginians to stay alert, use caution and obey signals around railroad tracks, and to always expect a train. “Rail safety is much more than just a single tip or slogan,” Govoni said. “It’s a set of guidelines for different groups of people, including children, first responders, media professionals, photographers, personal and professional drivers, and more.”

As part of this annual nationwide campaign, the SCC will partner with law enforcement and organizations throughout the state to promote daily Rail Safety Week themes that include commuter and transit safety, crossing safety and professional drivers, trespass prevention, and photographer safety. It will also share potentially life-saving information on its website and social media pages.

While the 76 percent decrease in collisions nationwide at highway-rail grade crossings during the past 50 years is encouraging, “there is still more rail safety awareness work to do,” Lamb said. “Trains can take a mile or more to come to a complete stop. If your vehicle ever stalls on the track, exit your vehicle immediately and call the phone number on the blue Emergency Notification System sign located at the crossing or call 911,” she said.

Virginia Operation Lifesaver is administered by the SCC’s Division of Utility and Railroad Safety, which offers education sessions, and can be reached at 804-371-1588. To learn more about railroad safety and railroad regulation in Virginia, visit scc.virginia.gov/pages/Railroad-Regulation or oli.org.

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Contact: Katha Treanor, 804-371-9141

RICHMOND – The State Corporation Commission (SCC) approved an increase to the fuel rate for customers of Dominion Energy Virginia that includes a mitigation proposal that would spread the recovery of the $1.020 billion projected fuel deferral over three years. The Commission also approved a stipulation under which Dominion Energy agreed to waive recovery of one-half of its incremental carrying costs arising from the three-year mitigation proposal, approximately $27.5 million.

The rate increase became effective on an interim basis, subject to further modification, on July 1, 2022.

For a residential customer using 1,000 kilowatt-hours of electricity per month, it represented an increase to the average weighted monthly bill of $14.93.

The fuel rate is the portion of the electric bill that pays for the fuel used to generate electricity and costs associated with power purchased by the utility company to serve its customers.

In its final order, the Commission stated: “the Commission notes its awareness of the ongoing rise in gas prices, inflation, and other economic pressures that are impacting all utility customers. We are sensitive to the effects of rate increases, especially in times such as these. The Commission, however, must follow the laws applicable to this case, as well as the findings of fact supported by the evidence in the record. This is what we have done herein.”

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Contact: Ford Carson, 804-371-9141

Order Establishing 2022-2023 Fuel Factor

RICHMOND – The State Corporation Commission (SCC) is recognizing Lifeline Awareness Week, September 12-16, 2022, to bring attention to an important communications resource for low-income Virginians. Lifeline, administered by the Universal Service Administrative Company, provides a monthly discount of up to $9.25 on qualifying voice and broadband services for eligible subscribers.

The COVID-19 pandemic brought remote work, education, and medical care to the forefront, underscoring the need for all Virginians to stay digitally connected. You could be eligible for Lifeline if your income falls below a certain level – at or below 135 percent of the federal poverty guidelines – or if you participate in one of the following federal assistance programs:

• Supplemental Nutrition Assistance Program (SNAP)
• Medicaid
• Supplemental Security Income (SSI)
• Federal Public Housing Assistance (FPHA)
• Veterans Pension and Survivors Benefit

Participating companies can help with enrollment. You can also use a new option – the National Verifier – to check your eligibility and sign up for Lifeline. Since not all companies are required to offer Lifeline service, it’s a good idea to contact area providers to see if they participate.

To learn more about Lifeline and the National Verifier, and to see if you are eligible, call 1-800-234-9473 or email lifelinesupport@usac.org or visit www.lifelinesupport.org or the FCC website at  www.fcc.gov/lifeline-consumers. You may also contact the Universal Service Administrative Co. at LifelineProgram@usac.org.

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Contact: Ford Carson, 804-371-9141