RICHMOND — The State Corporation Commission (SCC) has approved a request by Appalachian Power Company to recover $6.3 million in costs for participation in a renewable energy portfolio standard (RPS) program. The rate adjustment will become effective for service rendered on or after February 1, 2012. The costs were associated with the company’s two wind purchase power agreements, Camp Grove and Fowler Ridge.

The Commission found that the incremental costs of these agreements are properly recoverable through the RPS rate adjustment as proposed by the company. The SCC also found that it is reasonable to recover the non-incremental costs of the Camp Grove and Fowler Ridge purchase power agreements through the company’s fuel factor.

Several public witnesses questioned recovery through the RPS rate adjustment of costs for renewable energy produced outside of Virginia. The Commission found that the Code of Virginia does not permit it to deny cost recovery on such grounds.

The SCC directed Appalachian Power to file its next RPS rate adjustment on or before September 30, 2012.

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Case Number PUE-2011-00034