AEP’s Appalachian Power files resource plan in Virginia

Appalachian Power, the American Electric Power (NYSE:AEP) utility subsidiary in Virginia filed its integrated resource plan (IRP) with the State Corporation Commission (SCC) on July 1.

Among other things, Appalachian Power expects to finish the conversion of Clinch River Units 1 and 2 from coal to natural gas fuel.

The utility also plans to diversify its power mix through the addition of cost-effective wind, utility-scale solar, and natural gas-fired generation resources, as necessary.

The IRP five-year-action plan stipulates that the utility is facing plenty of uncertainty, including the Environmental Protection Agency (EPA) Clean Power Plan. The EPA plan calls on states to draft plans to curb power sector carbon dioxide (CO2) emissions 30% by 2030.

In addition, over the next several months, various court orders and agency rules that will likely impact the PJM market, especially with regard to capacity, are expected to be issued, Appalachian Power said.

An IRP explains how a utility company plans to meet peak demand and energy requirements of its customers. By Virginia rule, APCO is required to provide an IRP that encompasses a 15-year forecast period (2015-2029).

APCO’s 2015 IRP has been developed using the company’s current assumptions for factors including peak demand, commodity prices, demand programs and costs – including regulatory costs, Appalachian said.  

This 2015 IRP includes a tax on CO2 beginning in 2022, which is a reasonable proxy for future CO2 regulation at this time, the utility said.

 APCO’s customers consist of both retail and sales-for-resale (wholesale) customers located in the states of Virginia, West Virginia and Tennessee. The company serves a population of approximately 2.2 million in a 19,260 square-mile area. Currently, APCO has approximately 958,000 retail customers in those states, including over 524,000 in the Commonwealth of Virginia.

The APCO IRP is filed under case PUE-2015-00036.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.