On March 24, 2025, Appalachian Power Company (“APCo”) filed a petition for approval of new terms and conditions for certain large energy users, including data centers. The petition would modify the terms of APCo’s Large Power Service tariff (designated “Rate Schedule L.P.S.”). The revised Schedule L.P.S. would apply to new large load additions “greater than or equal to 150 MW on an aggregated basis or 100 MW at an individual site.” APCo’s petition proposes new requirements for these large customers, including a minimum contract term of twelve years; a minimum five-year notice to discontinue or modify service; an 80 percent monthly minimum billing demand; and an increased minimum amount of collateral to be provided by the customer. The petition explains that potential large load additions impose new risks for the utility and its other customers: “[i]f a large customer ceases or curtails operations after contracting with Appalachian for electric service, that could have the potential adverse effect of stranding the significant investment necessary to provide service to the customer. This risk is greater for new large load customers given the significant investment necessary to connect them to the system.”
APCo and certain other parties representing commercial and industrial users filed a stipulation on November 10, 2025, to resolve the issues in dispute. Among other things, the stipulation recommended 14-year initial contract terms with a load ramp period of up to four years. The SCC published a final order approving the rate schedule on June 1, 2026. The SCC’s final order generally approved Schedule L.P.S. as proposed by the parties to the November 10 stipulation, with certain modifications to the terms regarding collateral requirements and exit fees.
APCo filed a separate biennial rate case application on May 29, which is currently pending in Case No. PUR-2026-00044. APCo’s biennial rate case will include a review of APCo’s rate schedules and all terms and conditions of service.
