WOODLAWN — Appalachian Power is seeking approval from the Virginia State Corporation Commission (SCC) to build several miles of high-voltage power lines and a new substation at Wildwood Commerce Park in Carroll County.
If approved, the utility company says it will recover its costs by raising monthly bills for customers by more than $4.
The 270-acre regional industrial park, which has been in development for over a decade, sits just off Interstate 77’s exit 19. It is managed and marketed by a regional authority that includes Carroll and Grayson counties and the City of Galax.
The Wildwood plan is included in a new transmission rate adjustment clause petition recently filed with the SCC. Pending approval, Appalachian intends to begin construction on the 138-kilovolt transmission line extension and substation at Wildwood later this year, with completion expected late in 2024.
In a news release, Appalachian said the new electrical infrastructure would provide localities “a significant advantage in attracting and retaining large industry and jobs.”
So far, Wildwood has not landed its first tenant, despite several years of development and marketing efforts. State and local officials have said that getting roads, electrical service, natural gas and other infrastruture in place are key to recruiting industries.
“Many industrial prospects today won’t consider a site without utility infrastructure in place,” said Aaron Walker, Appalachian Power president and chief operating officer. “Prospects want shovel-ready sites. Providing an upfront, dedicated energy source would be a gamechanger and opportunity to positively impact this area for generations through job creation and tax base.”
In Virginia, legislation passed by the General Assembly allows public utilities to recover the costs associated with infrastructure development at industrial sites identified by the Virginia Economic Development Partnership. Last year, the SCC approved Appalachian’s request to recover the costs of utility projects at two other industrial parks; Wildwood is the third site submitted to the SCC for approval under the legislation.
Appalachian’s petition filed with the SCC also seeks to cover an increase in transmission charges, as administered by PJM, an independent regional transmission organization that manages the electric grid in 13 states, including Virginia.
Appalachian Power requested to increase the authorized Transmission Rate Adjustment Clause (T-RAC) from $368.1 million to $413.2 million, a $45.1 million increase. The T-RAC is the portion of a customer’s bill that recovers costs for transmission services, fees and new construction.
If approved by the SCC, the change will increase the typical monthly bill for a residential customer using 1,000 kilowatt-hours by $4.15, or roughly 2.6%.
