Appalachian Power proposes infrastructure expansion to boost southwest Virginia economy
Roanoke, Virginia – In an ambitious move to bolster job growth and investment in the southwest Virginia region, Appalachian Power has recently submitted a petition for a new transmission rate adjustment clause to the esteemed Virginia State Corporation Commission (SCC).
This strategic initiative by the company involves the construction of an expansive network of high voltage power lines and the establishment of a new substation within the confines of Carroll County’s Wildwood Commerce Park. This 270-acre industrial park is known for its regional influence and is the chosen venue for this significant development. By installing robust electrical infrastructure with a substantial capacity for future load growth, Appalachian Power is set to provide the locality with a formidable edge in the competitive field of attracting and retaining large industries and job opportunities. Subject to the SCC’s approval, the company has plans to kick-start the construction of the 138-kilovolt transmission line extension and substation within the year, eyeing a project completion date in the following year.
“Utility infrastructure is no longer a luxury, but a necessity for industrial prospects,” conveyed Aaron Walker, the esteemed president and chief operating officer of Appalachian Power. “Prospects are looking for shovel-ready sites. By offering a reliable and dedicated energy source upfront, we have the opportunity to make an impactful difference in this area for future generations through job creation and tax base enhancement.”
Under a pilot program sanctioned by the Virginia General Assembly, public utilities in Virginia are permitted to recuperate the costs linked to infrastructure development within industrial sites identified by the Virginia Economic Development Partnership. Just last year, the SCC sanctioned Appalachian Power’s plea to recover the cost of utility infrastructure investments at the Commonwealth Crossing Business Centre and Southern Virginia Megasite at Berry Hill. The Wildwood Commerce Park is the third site proposed to the SCC by the company for approval under this legislation.
The petition lodged by Appalachian Power last Thursday aims not only to recover its business park investments but also to account for an escalation in transmission charges as administered by PJM. As the independent regional transmission organization overseeing the electric grid in 13 states, including Virginia, PJM plays a crucial role in this development.
The company’s request to raise the authorized Transmission Rate Adjustment Clause (T-RAC) from $368.1 million to $413.2 million marks a $45.1 million increase. The T-RAC represents the portion of a customer’s bill that recovers costs for transmission services, fees, and new construction.
Pending the Commission’s approval, the proposed change would result in a modest $4.15 monthly bill increase for a residential customer consuming 1,000 kilowatt-hours, which is approximately a 2.6 percent rise from the typical bill in March 2023. A decision by the SCC is anticipated within three months, with any rate changes to be implemented within 60 days of the final order.
