ROANOKE, Va., May 16, 2025 – This week, Appalachian Power Company (APCo) took several steps toward achieving a carbon-free power generation future in Virginia. APCo submitted a petition to the Virginia State Corporation Commission (SCC) for permission to take additional steps for the early development of a Small Modular Reactor (SMR) in the service territory, as well as two updates detailing APCo's efforts to develop renewable energy resources under the Virginia Clean Economy Act (VCEA) and comply with state and federal environmental laws and regulations.
These filings reflect the company's commitment to a sustainable and reliable energy future for Virginia. SMR technology offers tremendous potential to provide Virginia with safe, reliable and clean energy. In 2024, legislation was passed to accelerate the development of SMRs. APCo is seeking approval to continue evaluating the Joshua Falls site, near Lynchburg, to determine if it can support a future SMR. Under rules established in the law, APCo must seek SCC approval before recovering any costs for this early work. There is no specific request at this time; however, the legislation caps recovery at $125 million.
The VCEA established energy goals for the state, and the filing highlights APCo's progress in meeting the state's growing renewable energy mandates through its Renewable Portfolio Standards Plan (RPS). Additionally, the state has established the Environmental Rate Adjustment Clause, or E-RAC. In a separate filing to adjust the E-RAC, APCo outlines the recoverable costs for investments it has made at its power-generating facilities to comply with state and federal environmental regulations.
This year's RPS continues to support a balanced and diverse portfolio of resources consisting of solar, wind, nuclear and market renewable energy certificate purchases.
In the RPS filing, the company seeks to recover costs associated with previously approved and currently proposed renewable projects that are either presently producing energy for Virginia customers or are anticipated to be operational during the rate year from March 2026 through February 2027. APCo is also seeking approval to move forward with three future renewable energy projects: a solar project in Wise County, Va., a battery energy storage project in Wythe County, Va., and a wind project in Livingston County, Ill.
Appalachian Power President and Chief Operating Officer Aaron Walker said the plan reflects the company's dedication to compliance with the VCEA and its pledge to deliver reliable and affordable energy to its customers while fostering environmental stewardship in its communities.
"These filings with the Virginia State Corporation Commission underscore our dedication to maintaining a resilient and reliable electric grid and also meeting the state's renewable energy mandates," Walker said. "We recognize the importance of delivering reliable and affordable energy to our customers."
The E-RAC submission details investments APCo has made at its generation plants. Specifically, the filing requests to recover costs incurred to comply with state and federal environmental regulations, including coal combustion residual (CCR) and effluent limitation guidelines (ELG) related investments, to ensure that the John E. Amos and Mountaineer power plants can operate after 2028.
RAC adjustments are made periodically and reflect only the actual costs that APCo has incurred.
In accordance with legislation passed in 2025, should the Commission approve the filings, adjustments to customer rates will not occur until March 1, 2026. Additionally, APCo intends to pursue a future filing to securitize certain assets to mitigate rate impacts to customers.
If approved as filed, the company's RPS adjustment would result in a $4.36, or 2.5%, increase for a residential customer using 1,000 kilowatt-hours (kWh), and the E-RAC adjustment would result in an increase of $2.00, or 1.1%, for a residential customer using 1,000 kWh.
Businesses seeking to submit a proposal for an RFP can access criteria, required forms and other specifics online at AppalachianPower.com/RFP.
Appalachian Power has 1.1 million customers in Virginia, West Virginia and Tennessee (as AEP Appalachian Power). It is part of American Electric Power, which is focused on building a smarter energy infrastructure and delivering new technologies and custom energy solutions. AEP’s approximately 16,000 employees operate and maintain the nation’s largest electricity transmission system and more than 225,000 miles of distribution lines to efficiently deliver safe, reliable power to nearly 5.6 million customers in 11 states. AEP is also one of the nation’s largest electricity producers with approximately 29,000 megawatts of diverse generating capacity.