RD168 - Appalachian Power®, A unit of American Electric Power, Integrated Resource Planning Report – May 1, 2017

Executive Summary:
This Integrated Resource Plan (IRP, Plan, or Report) is submitted by Appalachian Power Company (APCo or Company) based upon the best information available at the time of preparation. However, changes that impact this Plan can occur without notice. Therefore, this Plan is not a commitment to specific resource additions or other courses of action, as the future is highly uncertain, particularly in light of current economic conditions, the movement towards increasing use of renewable generation and end-use efficiency, as well as current and future environmental regulations, including the status of the U.S. Environmental Protection Agency's (EPA) Final Clean Power Plan (CPP).

The Virginia State Corporation Commission's (Commission or SCC) December 14, 2016 Order in APCo's 2016 IRP case (2016 IRP Final Order) directed the Company to present potential plans compliant with multiple scenarios of the CPP, as well as a "No Carbon" scenario. This direction was similar to that which was provided by the Commission in its February 1, 2016 Order following the Company's 2015 IRP (2015 IRP Final Order). Recognizing many uncertainties, this IRP provides useful information to assess potential approaches for compliance with, and the possible costs and rate impacts of, the CPP. The specific locations within this IRP filing, which respond to each requirement of the IRP, appear in the Appendix as part of APCo's larger index (Exhibit D).

On June 9, 2015, the Federal Energy Regulatory Commission (FERC) issued an order pertaining to PJM's proposed Capacity Performance construct, thereby providing guidance to PJM on its capacity market proposals. FERC allowed an exemption from the Capacity Performance rules for companies which utilize the Fixed Resource Requirement (FRR) (i.e. self-supply) alternative through 2018/19. APCo has elected the FRR alternative to fulfill its capacity obligations through 2019/20. Until APCo has actual experience with the Capacity Performance Construct, its effects will remain uncertain.

In addition to those described above, APCo faced a number of other dynamic circumstances as it developed this IRP. Those circumstances are discussed throughout this Report. Given all of these circumstances, this I.RP, and the action items described herein are subject to change as new information becomes available or as circumstances warrant.