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Appalachian Power files for approval of renewable energy resources

March 31, 2023

CHARLESTON, W.Va. – In a filing made today with the Public Service Commission of West Virginia (PSC), Appalachian Power, along with Wheeling Power, is requesting approval for recovery of costs associated with multiple renewable energy projects.

The filing includes a 143 megawatt (MW) wind facility in Ohio, to be acquired through a purchase and sale agreement (PSA). Also included are seven solar facilities, capable of producing a combined 204 MW, from which the company would purchase renewable energy using power purchase agreements (PPAs). The facilities are expected to begin operation between 2024 and 2026.

“Having renewable power generation available is critical to attracting new industry to West Virginia and retaining existing business, which benefits our customers and improves the state’s economic health,” said Aaron Walker, Appalachian Power president and COO. “We continue to see increasing demand from our commercial and industrial customers for renewable energy.” Walker added that because renewable energy is not subject to volatility in fuel prices it is one of the ways we can hedge against energy market swings.

It is anticipated that the costs of the renewable projects will be paid by customers who subscribe to purchase energy from the projects, using the Renewable Power Plus (RPP) tariff approved in 2022. While first year project costs could result in as much as a 0.2 percent increase, these solar and wind facilities over their operational lives are projected to reduce customer rates. Any rate adjustments will be requested in future filings when the projects achieve commercial operation.

Appalachian Power has 1 million customers in Virginia, West Virginia and Tennessee (as AEP Appalachian Power). It is part of American Electric Power (AEP), which is focused on powering a cleaner, brighter energy future for its customers and communities. AEP’s approximately 17,000 employees operate and maintain the nation’s largest electricity transmission system and more than 224,000 miles of distribution lines to safely deliver reliable and affordable power to 5.6 million regulated customers in 11 states. AEP also is one of the nation’s largest electricity producers, with approximately 31,000 megawatts of diverse generating capacity, including more than 6,900 megawatts of renewable energy.

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