Va. Regulators Deny APCo Renewable Energy Contracts

June 3, 2010

Virginia regulators have denied an application by Appalachian Power to approve three purchase power agreements as part of its participation in the state's renewable energy program.

The utility company had asked the State Corporation Commission to approve two contracts for the Grand Ridge wind project and one for the Beech Ridge wind project. The company contracted for a combined capacity of 201 megawatts of electricity.

The SCC said the agreements are too costly for Appalachian Power's customers. Regulators said state legislators have made it clear that renewable forms of energy are to be encouraged, but customers must be protected from unreasonably high costs.

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