Legals
NOTICE TO THE PUBLIC OF AN OPPORTUNITY
TO PROVIDE COMMENT TO THE STATE CORPORATION
COMMISSION ON THE UNIVERSAL SERVICE FEE TO BE
PAID BY RETAIL CUSTOMERS OF APPALACHIAN
POWER COMPANY FOR THE PERCENTAGE OF INCOME
PAYMENT PROGRAM
CASE NO. PUR-2020-00117
During its 2020 Session, the Virginia General Assembly enacted what has become known as the Virginia Clean Economy Act (“VCEA”). As pertinent here, the VCEA required the State Corporation Commission (“Commission”) to determine the universal service fees to be collected from customers of Appalachian Power Company (“APCo”) and Virginia Electric and Power Company d/b/a Dominion Energy Virginia (“Do- minion”) to fund the Percentage of Income Payment Program, or PIPP, established by statute. PlPP funds would be allocated to retail customers of APCo and Dominion to reduce the energy burden of utility customers participating in certain public assistance programs. The VCEA further required that the universal service fees “shall not be collected from customers . . . until such time as the PIPP is established.”
On December 23, 2020, the Commission issued an Order in this docket determining a universal service fee for APCo of $0.001803 per kilowatthour (“kWh”) to recover approximately $25 million annually. This universal service fee was approved “with no effective date at this
time.” The Commission also ordered that, “[u]pon enactment of legislation setting forth further details on the PIPP and subsequent direction by this Commission, APCo shall file for review and revision (if necessary) of the PIPP fee, prior to collection of the fee from customers.”
On March 24, 2021, the Governor of Virginia signed what has become Chapter 308 of the 2021 Virginia Acts of Assembly. This law establishes the PIPP Fund on the books of the Comptroller. Chapter 308 also modifies the definition of “PIPP eligible utility customer”; sets caps on
the annual cost of PIPP-related programs, including administrative costs, at $25 million for APCo and $100 million for Dominion; requires the Commission to initiate proceedings to provide for an annual true-up of the universal service fee within 60 days of commencement of the PIPP; and requires the Commission to promulgate “any rules necessary to ensure” funds collected from APCo’s and Dominion’s universal service fees are directed to the PlPP Fund and that the utilities receive adequate compensation from the PIPP Fund for all reasonable PIPP costs, including bill credits for PIPP-eligible customers. Finally, Chapter 308 requires the Commission to issue an order “as soon as practicable” following the July 1, 2021 effective date of Chapter 308, to begin the collection of the universal service fee from customers.
The Commission entered an Order on Additional Proceedings that, among other things, reopens and remands this case to a Hearing Examiner for additional procedures concerning the PIPP and associated universal service fee, including consideration of specific questions appended to the Order (“Appendix”). Among other things, these questions are designed to help the Commission discern whether Chapter 308’s modification to the definition of “PIPP eligible utility customer” requires a change to the universal service fee; when the universal service fee should start being collected; and what costs the initial fee collections should be designed to recover.
TAKE NOTICE: At the previously approved rate of $0.001803 per kWh to recover approximately $25 million annually in universal service fees from APCo customers, a residential customer using 1,000 kWh of electricity per month would experience a monthly bill increase of approximately $1.80. The amount of the fee, as well as the timing of its implementation, are matters under review in this proceeding. The universal fee ultimately approved by the Commission in this docket may be lower than the previously set fee. Under Chapter 308, the cap on the annual cost of PIPP-related programs, including administrative costs, is $25 million for APCo.
The Order on Additional Proceedings directs APCo to make a supplemental filing on or before May 12, 2021, responding to the Appendix and also allows interested persons an opportunity to file comments, to request a hearing, or both on or before May 28, 2021.
The Commission has taken judicial notice of the ongoing health emergency related to the spread of the coronavirus, or COVlD-19, and the declarations of emergency issued at both the state and federal levels. All pleadings, briefs, or other documents required to be served in this
matter shall be submitted electronically to the extent authorized by 5 VAC 5-20-150, Copies and format, of the Commission’s Rules of Practice and Procedure, 5 VAC 5-20-10 et seq. (“Rules of Practice”). Confidential and Extraordinarily Sensitive Information shall not be submitted
electronically and should comply with 5 VAC 5-20-170, Confidential information, of the Rules of Practice. For the duration of the COVlD-19 emergency, any person seeking to hand deliver and physically file or submit any pleading or other document shall contact the Commission’s
Clerk’s Office Document Control Center at (804) 371-9838 to arrange the delivery. Pursuant to 5 VAC 5-20-140, Filing and service, of the Commission’s Rules of Practice, the Commission has directed that service on parties and Commission Staff in this matter shall be performed electronically. Please refer to the Commission’s June 12, 2020 Order Establishing
Proceeding for further instructions on Confidential or Extraordinarily Sensitive Information.
On or before May 28, 2021, any interested person or entity may file comments responding to the Appendix and to APCo’s supplemental filing, and may also address any related matters for the Commission’s consideration. Comments shall be made by following the instructions found
on the Commission’s website: scc.virginia.gov/pages/Case-Information. Commenters are urged to submit comments electronically, though comments also may be sent to the Clerk of the Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218-2118.
On or before May 28, 2021, any interested person or entity may file with the Clerk of the Commission, in accordance with the Rules of Practice, a request that the Commission convene a hearing on the Appendix and on APCo’s supplemental filing. All requests for hearing must
include the email address of the filer or its counsel, along with (i) a precise statement of the filing party’s interest in the proceeding; (ii) a statement of the specific action sought to the extent then known; (iii) a statement of the legal basis for such action; and (iv) a precise statement why the issues raised in the request for hearing cannot be addressed adequately without a hearing. Filers are urged to make their requests electronically via scc.virginia.gov/clk/efiling, though requests for hearing also may be sent to the Clerk of the Commission at the physical address listed above. All requests for hearing, however submitted, shall be served simultaneously on Commission Staff; on counsel for APCo,
Noelle J. Coates, Esquire, American Electric Power, 1051 East Cary Street, Suite 1100, Richmond, Virginia 23219, njcoates@aep.com; and on all respondents in this case. If a sufficient request for hearing is not received, the Commission may consider the matter and enter an order based upon the papers filed herein.
All documents filed in this case shall refer to Case No. PUR-2020-00117. Any documents filed in paper form with the Office of the Clerk of the Commission in this docket may use both sides of the paper. In all other respects, all filings shall comply fully with the requirements of 5 VAC
5-20-150, Copies and format, of the Commission’s Rules of Practice.
The Commission’s Rules of Practice and copies of the Commission’s Order Establishing Proceeding, Order on Additional Proceedings including the Appendix, and other documents filed in Case No. PUR-2020-00117, may be found on the Commission’s website:
scc.virginia.gov/pages/Case-Information.APCo’s supplemental filing also may be viewed at this website after it is filed.
APPALACHIAN POWER COMPANY
