CASE NO E-PC APPALACHIAN POWER COMPANY and WHEELING POWER COMPANY Petition for consent and approval of Economic Development Program.

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1 VIA FACSIMILE AND OVERNIGHT MAIL Ms. Ingrid Fenell Executive Secretary Public Service Commission of West Virginia 201 Brooks Street? Re: Dear Ms. Ferrell: April 12, CASE NO E-PC APPALACHIAN POWER COMPANY and WHEELING POWER COMPANY Petition for consent and approval of Economic Development Program. Please find enclosed for filing in the above-referenced case on behalf of the West Virginia Energy Users Group an original and twelve (1 2) copies of its "Petition to Intervene. " Please contact me if you have any questions concerning this filing. Sincerely, BAN.sds.11ii8~9 Enclosures C: Certificate of Service Derrick Price Williamson Barry A. Naum (WV State Bar #12791) dwilliamson@,spilmanlaw.com - bnaum@,spilmanlaw.com Susan J. Riggs (WV State Bar #5246) Jason C. Pizatella (WV State Bar #10532) Spilman Thomas & Battle, PLLC 300 Kanawha Boulevard, East srie;gs@,spilnianlaw.com jpizatella@spilmanlaw.com 1120 b r, West Virginia North Carolina Pennsylvania Virginia s

2 CERTIFICATE OF SERVICE I, Barry A. Naum, counsel to the West Virginia Energy Users Group, do hereby certify that on this 12"' day of April, 2019, a copy of the foregoing "Petition to Intervene" was served upon the parties and/or counsel of record in this proceeding as follows: VIA US. MAIL William C. Porth, Esquire Robinson & McElwee PLLC P.O. Box 1791 Charleston, WV and James R. Bacha, Esquire American Electric Power Service Corp. 1 Riverside Plaza P.O. Box Columbus, OH Counsel for Appalachian Power Company and Wheeling Power Company Wendy Braswell, Esquire Staff Attorney Public Service Commission of West Virginia 201 Brooks Street Counsel for Commission Staff Jaqueline Lake Roberts, Esquire Heather B. Osborn, Esquire Tom White, Esquire Consumer Advocate Division 700 Union Building 723 Kanawha Boulevard, East Counsel for Consumer Advocate Division Barry A. Naum (WV State Bar #12791)

3 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA CHARLESTON CASE NO E-PC 2, APPALACHIAN POWER COMPANY and WHEELING POWER COMPANY Petition for consent and approval of an Economic Development Program. PETITION TO INTERVENE The West Virginia Energy Users Group ("WVEUG"), pursuant to Rule 12.6 of the Public Service Commission of West Virginia's ("Commission") Rules of Practice and Procedure, moves to intervene in the above-referenced proceeding, asserting that WVEUG has a legal interest in such proceeding sufficient to satisfy the requirements of Rule 12.6 and states as follows: I. Petitioner is WVEUG. The composition of WVEUG at this point in time for purposes of this proceeding is attached as Appendix "A." Appendix "A" will be updated as necessary. 2. The names and addresses of Petitioner's attorneys are: Barry A. Naum Derrick Price Williamson SPILMAN THOMAS & BATTLE, PLLC 1100 Bent Creek Boulevard, Suite 101 Mechanicsburg, PA Phone: (7 17) Fax: (71 7) bnaum@,spi lmanlaw. com dwilliamson@,spilmanlaw.com Susan J. Riggs Jason C. Pizatella SPILMAN THOMAS & BATTLE, PLLC 300 Kanawha Boulevard, East Phone: (304) Fax: (304) &gs@,spilmanlaw.com j pizatella@,s,spilmanlaw.com WVEUG requests that the Commission and all parties add WVEUG's counsel to their respective service lists to receive all future filings.

4 3. On March 29,2019, Appalachian Power Company ("APCo") and Wheeling Power Company (I' WPCo") (collectively, "Companies"), filed with the Commission their Petition for approval of an economic development fund ("EDF") ("Petition"), which will "create a funding mechanism for strategic economic development efforts." Direct Testimony of Brad N. Hall, p. 7. The Companies are proposing to finance the EDF through a monthly meter charge of $0.12 per meter on all retail customers, estimated to annually produce approximately $670,000 in revenues, coupled with matching funds invested by the Companies that will not be reflected in rates. Id. at As impetus for the EDF proposal, the Companies cite Paragraph 20 of the Joint Stipulation and Agreement for Settlement in their recent base rate and depreciation rate proceedings at Case Nos E-42T and E-D, respectively (the "Base Rate Case Settlement"), wherein the Companies agreed to work with the West Virginia Department of Commerce to develop economic incentive programs to assist with industrial development "comparable to economic incentive programs currently in place in Kentucky Power Company's service territory, to be funded by a combination of electric service customer fees and some form of matching contributions from the Companies (which will not be included in the Companies' cost of service and which will not exceed $1.2 million)." Petition, 7 2 (citing the Base Rate Case Settlement at 7 20). As noted by the Companies, the Base Rate Case Settlement also referenced, and requested an extension of the deadline, for $1 million "earmarked for economic development in the G.O settlement" (pertaining to the Tax Cuts and Jobs Act ("TCJA"'), "to allow for General Order ("G.O.") No , In the Matter of the Effects on Utilities of the 2017 Tax Cuts and Jobs Act, Joint Stipulation and Agreement for Settlement ("TCJA Settlement") filed by APCo and WPCo (Aug. 23, 2018), n Il(f). 2

5 the possibility of some or all of the these funds being used in connection with the economic incentive programs." Id. 4. According to the Companies, the proposed EDF is intended to comply with Paragraph 20 of the Base Rate Case Settlement, which they claim also "supports the same sorts of activities which the Conipanies and the West Virginia Commerce Department have agreed upon in the Economic Development Advantage Program" ("EDAP") also filed by the Companies as a closed entry in the G.O docket on March 29, Id. Apparently, the Companies specifically view the EDF as a means to enable the EDAP activities "to be continued on an ongoing basis." Id. 5. For purposes of this case, WVEUG is comprised of an adhoc association of energyintensive industrial customers receiving electric service from both APCo and WPCo pursuant to the Companies' current Rate Schedules LCP, IP, and Special Contracts. WVEUG members provide thousands of jobs in West Virginia with millions of dollars in combined annual payroll, and they contribute millions of dollars in annual state, local, and property taxes, over and above the substantial contributions that these corporate citizens make to their local communities and charities. The cost of electric utility service is a significant element in the cost of operation for WVEUG members. 'The Commission's action in this case may therefore have a significant impact on WVEUG and the state as a whole, considering the critical role that industries play in the West Virginia economy. 6. WVEUG expects to fully participate in this proceeding in order to address issues of importance to its members. Specifically, as a signatory party to both the Base Rate Case Settlement and the TCJA Settlement, WVEUG is concerned that the Companies' proposed EDF, coupled with the EDAP, may exceed the scope and intent of the settlements regarding economic 3

6 development efforts. While supporting efforts to increase economic development and attract new industrial and manufacturing customers to West Virginia, WVEUG is concerned that the proposed EDF may not comport with the expectations of the Base Rate Case settlement and the TCJA Settlement, which anticipated that the $1 million earmarked from the unprotected excess Accumulated Deferred Federal Income Taxes ('I ADFIT") allocated to the industrial class in the TCJA Settlement would be used, if possible, to fund the programs contemplated by the Base Rate Case Settlement. In addition, while the prospective $0.12 per meter charge proposed in this case may be of limited initial impact, WVEUG questions whether an additional surcharge applied to ratepayers is necessary and justifiable; such costs could be recovered in a base rate case. Further, WVEUG believes the cost to ratepayers of the proposed EDF may be neither an effective nor reasonable investment, considering that neither the EDAP nor the EDF appear to make any effort to support the retention of existing industrial loads, which WVEUG believes is an important and critical component of economic development on the Companies' system. WVEUG anticipates pursuing these concerns in the course of this proceeding and furthermore must be able to respond to positions presented by other parties that may adversely impact its members. 7. Accordingly, WVEUG has direct and significant concerns in this proceeding, and its interests are not represented by any other party of record. WVEUG petitions the Commission for leave to intervene in order to protect the interests of its constituent members. 4

7 WHEREFORE, the West Virginia Energy Users Group respectfully requests that the Commission grant this Petition to Intervene with full party status and the right to have notice of, and, by its attorneys, to appear at the taking of testimony, to produce and cross-examine witnesses, and to be heard on the argument of the matter Respectfully submitted, Derrick Price Williamson Barry A. Naum (WV State Bar # 12791) SPILMAN THOMAS & BATTLE, PLLC Bent Creek Boulevard, Suite 10 1 Mechanicsburg, PA Phone: (717) Fax: (717) dwilliamson@,spilmanlaw.com bnaum@,spilmanlaw. corn Susan J. Riggs (WV State Bar # 5246) Jason C. Pizatella (WV State Bar # 10532) SPILMAN THOMAS & BATTLE, PLLC 300 Kanawha Boulevard, East Phone: (304) Fax: (304) sriffas@,spilmanlaw.com I- ipizatella@,spilmanlaw.com Date: April 12, 2019 Counsel fo the West Virginia Energy Users Group 5

8 APPENDIX A MEMBERS OF THE WEST VIRGINIA ENERGY USERS GROUP The Chemours Company Constellium Rolled Products Ravenswood, LLC Covestro LL,C Eagle Natrium (Westlake) Marathon Petroleum Company LP (MarkWest) WVA Manufacturing, LLC