To List Attached

April 22, 2003

RE: Appalachian Power Company

Smith Mountain Project No. 2210

Application for New License

Communications Protocol

Dear Sir or Madam:

On behalf of Appalachian Power Company (Appalachian), please find attached one draft copy of the Communications Protocol that we propose to utilize during the process of applying for a new license for the Smith Mountain Project. The attached draft communications protocol is being submitted for your review and comment. The intent is to discuss the proposed protocol as well as other procedural issues at the next meeting to be held regarding Appalachian’s filing an application for new license for the Smith Mountain Project.

As stated in the attached draft protocol, Appalachian intends to follow the Alternative Licensing Process (ALP) in preparing and filing its application for new license. The rules and regulations regarding the ALP can be found in the Code of Federal Regulations, Part 18, Chapter 4, Section 34 (18 CFR 4.34). As part of that process, a communications protocol, supported by interested parties, governing how the applicant (Appalachian) and other participants including staff from the Federal Energy Regulatory Commission (Commission) may communicate during the license application process is to be filed by the applicant.

We are asking that those addressed review the attached draft communications protocol and be prepared to provide comments at the upcoming meeting to be held to discuss the license application process for the Smith Mountain Project. The next meeting is scheduled for 10:00 a.m. EDST on Wednesday, May 14 and is to be held at Appalachian’s Penn Hall Conference Center located at Union Hall, Virginia. Directions to the conference center are provided with this letter. Those not able to attend the scheduled meeting are asked to provide comments in writing to the undersigned on the protocol prior to the meeting. Based upon the comments received in writing and at the meeting, a final communications protocol will be prepared and submitted for signature to those parties with an interest in the licensing process.

Please notify the undersigned regarding your ability to attend the scheduled meeting. We appreciate your cooperation and look forward to working with you during the ALP. If there are any questions, please contact me at your convenience.

Very truly yours,

Frank M. Simms

Hydro Support Manager

(614) 716-2918

cc:w/att.

J.L. Fariss – Appalachian

List Attached

APPALACHIAN POWER COMPANY

SMITH MOUNTAIN PROJECT NO. 2210

COMMUNICATIONS PROTOCAL

FOR THE PARTICPANTS

IN THE

APPLICANT-PREPARED ENVIRONMENTAL ASSESSMENT PROCESS

Introduction

Appalachian Power Company (Appalachian) is the licensee for the Smith Mountain Project located on the Roanoke River in the south central region of Virginia. Two developments comprise the Smith Mountain Project those being Smith Mountain (the upper development) located at river mile 314 and Leesville (the lower development) located at river mile 296. The Smith Mountain Project is licensed by the Federal Power Commission (now known as the Federal Energy Regulatory Commission) as Project Number 2210. The project license was issued April 25, 1960 with an expiration date of March 31, 2010.

Appalachian will file its intent to seek a new license from the Federal Energy Regulatory Commission (Commission) in late 2004 or early 2005. In order to simplify and expedite the licensing process, Appalachian intends to submit a request to the Commission to utilize the Alternative Licensing Process (ALP) as defined by Commission regulations. Under those regulations, a formal request to utilize the ALP must be filed with the Commission and has to include a communications protocol supported by those interested parties participating in the licensing process.

This communications protocol is intended to provide a framework for dialog and coordination among those parties involved in the development of the Environmental Assessment (EA) to be prepared and filed with the Commission by Appalachian as part of the Application for New License for the Smith Mountain Project No. 2210. The EA will replace the Exhibit E required by the Commission in license applications and will be utilized in the decision making process relative to granting a new license to Appalachian for the continued operation of the subject project. The EA will be prepared in cooperation with the other interested parties during the ALP.

Communication among the participants in the process of developing the EA for the Smith Mountain Project must be timely, concise and open to public view. Clear and controlled communication is necessary in order to ensure that relevant data is presented clearly and in a timely manner, and that all communication involving Appalachian, the agencies, the local governments, non-governmental organizations and other stakeholders is accomplished in an orderly manner. Mechanisms are needed in order to establish the formal consultation record and to ensure that the Commission’s ex parte communication regulations are adhered to and followed accordingly. Ex parte communications means off-the record communications relative to the merits of an on-the-record proceeding pending before the Commission. This protocol outlines the mechanisms for ensuring that these goals and objectives are met and defines how the applicant (Appalachian) and other interested parties including the staff of the Commission may communicate with each other during the preparation of the EA.

It should be noted that for this communications protocol (protocol) the designation “Appalachian” shall mean Appalachian Power Company and/or its designated representative.

Communications Mechanisms and Guidelines

A. Public Meetings

Formal public meetings will be noticed by Appalachian through the appropriate media including but not limited to: (1) local newspapers; (2) radio; (3) television; and (4) the web site established specifically for the preparation of application for new license, www.smithmtn.com. A list of participants and interested members of the public will be established and maintained by Appalachian. Notices of public meetings will be mailed to individuals on that list. All meetings will be documented by Appalachian in meeting summary reports to be included in the public record as described by this protocol. Public meetings will be held at various locations in the vicinity of the Smith Mountain Project. Public notice shall be provided to the public at least two weeks prior to the date of any meeting.

B. Coordination Meetings

Meetings of participants in the environmental review process will be conducted as necessary throughout the EA process. The need for meetings will be determined based upon the consensus of the participants and scheduled by Appalachian. The meetings will for the most part be held in the vicinity of the Smith Mountain Project. The meetings shall be documented by Appalachian in meeting summary reports to be included in the public record.

C. Telephone Conversations

All verbal communication pertinent to the EA for the Smith Mountain Project application for license shall be recorded utilizing log sheets and/or electronic media. Unless otherwise agreed to by the participants to a telephone conversation that includes staff of the Commission and/or Appalachian, the documentation of the telephone conversation shall be prepared by either Commission staff or staff from Appalachian depending on which is involved. Where both parties are involved, Appalachian staff shall prepare the documentation. Where neither party is involved, documentation shall be prepared by one of the participants as agreed by those involved in the conversation and copies of that documentation provided to Appalachian for inclusion within the public record. The records of telephone conversations shall be utilized to track communications among the Commission, Appalachian, resource agencies, local governments, non-governmental organizations, interested parties and the public.

D. Teleconference Calls

All teleconference communications pertinent to the EA for the Smith Mountain Project application for license shall be recorded utilizing log sheets and/or electronic media. Unless otherwise agreed to by the participants to a teleconference call that includes staff of the Commission and/or Appalachian, the documentation of the teleconference call shall be prepared by either Commission staff or staff from Appalachian depending on which is involved. Where both parties are involved, Appalachian staff shall prepare the documentation. Where neither party is involved, documentation shall be prepared by one of the participants as agreed by those involved in the call and copies of that documentation provided to Appalachian for inclusion within the public record. The records of teleconference calls shall be utilized to track communications among the Commission, Appalachian, resource agencies, local governments, non-governmental organizations, interested parties and the public. At least seven days notice shall be given to all expected teleconference call participants by the individual scheduling the conference call prior to the call being made. That individual will also be responsible for making all appropriate arrangements and notifications.

E. Written and Oral Communications

Copies of written materials associated with the preparation of the EA prepared for or received by the Commission will be kept in the appropriate files by Appalachian and will be available to the public as part of the public record. Copies of written communications and any other communications not specifically addressed in paragraphs A through D above, that are relevant to the development of the EA for the Smith Mountain Project and received by Appalachian from any entity or sent by Appalachian to any entity, will be incorporated into the public record. All written communications must have the following clearly displayed on the first page:

Smith Mountain Project (FERC No. 2210) - Application for New License

F. Public Record

Copies of the meeting summary reports, records of telephone conversations, documentation of teleconference calls, and written and oral communication documenting communications related to the development of the EA and the application for new license to be filed by Appalachian for the Smith Mountain Project shall be maintained on file at the following location:

American Electric Power

Hydro Generation

40 Franklin Road

Roanoke, Virginia 24011

The same information will be available to the public via the web site established for the relicensing of the Smith Mountain Project: www.smithmtn.com.

The Commission will maintain a public file containing all information filed in the proceeding at its office located at:

Federal Energy Regulatory Commission

Public Reference Room, Room 2-A

888 First Street, N.E.

Washington, DC 20426

The information contained in that file can be viewed on the Commission’s web site at: www.ferc.gov/ferris.htm.

Communications with the Commission

Any individual or group may communicate verbally with staff of the Commission regarding the development of the EA and/or license application for the Smith Mountain Project without notice to the other parties provided:

1. Each such communication shall be fully summarized in writing. Unless agreed to otherwise by the participants in the communication, Commission staff participating in the communication shall be responsible for preparing the documentation and providing copies to those participating in the development of the EA and/or license application and incorporated into the public record.

2. If communication with staff of the Commission concerns an underlying document related to the development of the EA and/or license application, a copy of that document shall be incorporated into the docket for this proceeding and into the public record.

In order to have communications with the Commission be part of the record for a project, they must be formally filed with the Commission. To formally file all documents and written communications to the Commission or Commission staff regarding the project, they must be filed with:

The Secretary

Federal Energy Regulatory Commission

888 First Street, NE

Washington, DC 20426

All written communications to the Commission must have the following clearly displayed on the first page:

Smith Mountain Project (FERC No. 2210) - Application for New License

Information communications with Commission staff may be necessary. Consequently, anyone may informally communicate with Commission staff during the development of the EA and license application. These communications may concern the procedures or substantive issues, and may occur without prior notice to other parties. Oral communication with Commission staff that involves a substantive issue (as opposed to a procedural issue) will be summarized as described above for telephone conversations. A copy of any documentation of the conversation will be provided to Appalachian for incorporation into the public record.

Progress Reports

During the term of the ALP, Appalachian will provide to the Commission progress reports of activities completed during the past six-month period and the schedule of major milestone events and consultations for the coming six-month period. Filing of these reports shall begin six months after the Commission approves us of the ALP. Copies of the progress reports, as filed with the Commission, will be provided to all interested parties participating in the ALP by the methods described within this protocol for providing information to the public and interested parties.

Participation in the Process for Development of the EA and License Application

The process involved relative to developing the EA and filing the Application for New License is open to the general public and broad participation is encouraged.

A. Participants

The individuals, agencies, local governments and non-governmental organizations recognized as being likely to participate in the development of the EA and application for new license to be filed with the Commission by or on behalf of Appalachian are listed in Attachment No. 1 to this protocol. Any concerned parties not included on that list and that desire to become participants in the development of the EA and application for new license, should contact:

Frank M. Simms

Hydro Support Manager

American Electric Power

1 Riverside Plaza

Columbus, Ohio 43215

Phone No. 614-716-2918

The Commission will assign staff to serve as an advisor to the stakeholders in the development of the EA. The assigned staff member will be involved in pre-filing consultation meetings to provide guidance during the process. Any Commission staff member may participate in a meeting – either in person or by telephone conference – without prior notice to other participants provided that minutes are written and placed into the public record. If any party would like to know in advance of the meetings that Commission staff will attend, they may request this information from the Commission staff assigned.

B. Organizational Structure

The work of the participating organizations will be coordinated under the direction of the Relicensing Steering Committee. That committee will be made up of representatives from selected Federal and State agencies, local governments and non-governmental organizations participating in the EA development process. The representatives for the Relicensing Steering Committee will be determined at a meeting scheduled by Appalachian for which selection of the steering committee members is to be a key agenda item. The Relicensing Steering Committee will be the lead in developing the final terms and conditions of any agreements and the EA itself.

The participating organizations will be organized into several distinct Working Groups, each with their own roles and responsibilities, that will report and make recommendations to the Steering Committee. The Working Groups will lead in the preparation and review of the portions of the EA and license application. Participants in each Working Group will be assigned based upon their expertise and direct interest in the various categories yet to be determined. The categories and makeup of the Working Groups will be determined at a meeting scheduled by Appalachian for which determining the categories to be addressed by the Working Groups and the make-up of those groups is a key agenda item.

Participants in the EA and license application process should recognize that it is desirable to include all affected interests as fully possible but that the groups involved should be of manageable size. Organizations and individuals who are not members of the Steering Committee will be encouraged to participate as members of the Working Groups. All meetings will be open to any interested observer. Steering Committee meetings will be publicly noticed. That committee will have the responsibility regarding participation in the Steering Committee and Working Groups and should have individuals assigned that can fully represent the interests of their organization.

Each Working Group will assign a lead representative whose responsibility will be for informing the Steering Committee about the activities of their respective Working Groups. As the development of the EA and application for new license proceeds, additional Working Groups may be formed. The formation of an additional Working Group will require the approval of the Steering Committee. However, subgroups within the Working Groups may be formed without such approval.

Individuals or groups may be interested in the proceedings but may not want to be actively involved. Those groups/individuals will be referred to as “interested parties” and will be kept informed as detailed in this protocol.

Termination

It should be understood that Appalachian, based upon progress or the lack thereof relative to the development of the EA and preparation of the application for new license for the Smith Mountain Project or due to changes in regulations, may desire to develop the EA and license application in conformance to other Commission regulations for such activities. Such a change may result in the termination of this protocol. Such termination by Appalachian shall be done with notice to the participants and the Commission and may be done under the sole discretion of Appalachian.

Unless terminated as described above, this protocol will remain in effect until the Commission notifies Appalachian that the final license application has been accepted for filing. Participants in the proceeding may elect by consensus to extend the duration of this protocol until issuance of the license order.

Revisions

Upon consensus of Appalachian and the participants in the development of the EA, this protocol may be revised as deemed appropriate. A copy of any revisions shall be distributed to all participants and incorporated into the public information files.

APPALACHIAN POWER COMPANY

SMITH MOUNTAIN PROJECT NO. 2210

COMMUNICATIONS PROTOCOL

FOR THE PARTICIPANTS

IN THE

APPLICANT-PREPARED ENVIRONMENTAL ASSESSMENT PROCESS

SUPPORT AND APPROVAL

I, the undersigned, as representative for the: (1) State or Federal Agency; (2) local government; or (3) non-governmental organization listed below support Appalachian Power Company (Appalachian) in consolidating the National Environmental Policy Act (NEPA) process with the Federal Energy Regulatory Commission’s (Commission) pre-filing consultation process and proceeding to prepare and file an application for new license under the Commission’s rules and regulations related to the Alternative Licensing Process (ALP)..

My understanding is that Appalachian intends to file with the Commission an Environmental Assessment (EA) as part of its application for new license for the Smith Mountain Project in lieu of filing an Exhibit E.

I have read and agree to follow the Communications Protocol proposed by Appalachian to guide communications and information exchanges related to the development of the EA.

Signed by:

__________________________________________ Date:___________________

Printed Name

Representing:

Name: ______________________________________________________

Address: ______________________________________________________

Contact Phone No. _______________________ e-mail ________________________

Title	FirstName	LastName	JobTitle	Company	Address1	Address2	City	State	PostalCode	Country	HomePhone	WorkPhone
1	William L.	Woodfin	Director	VDGIF	4010 West Broad Street		Richmond	Virginia	23230
2	W. Tayloe	Murphy	Secretary of Natural Resources	Commonwealth of Virginia	P.O. Box 1475		Richmond	Virginia	23218
3	Robert B.	Stroube, MD, MPH	Commissioner	VDH	Main Street Station	1500 East Main St.	Richmond	Virginia	23219
4	Kathleen S.	Kilpatrick	Director	VDHR	2801 Kensington Ave.		Richmond	Virginia	23221
5	Steve	Dietrich		VDEQ	West Central Regional Office	3019 Peters Creek Road	Roanoke	Virginia	24019
6	Joseph H.	Maroon	Director	VDCR	203 Governor Street	Suite 302	Richmond	Virginia	23219
7	William A.	Pruitt	Commissioner of Marine Resources	Virginia Marine Resources Commission	2600 Washington Avenue	Third Floor	Newport News	Virginia	23607
8	Cody D.	Walker	Deputy Director	Virginia State Corporation Commission	Division of Energy Regulation	P.O. Box 1197	Richmond	Virginia	23218
9	Alan	Creamer		FERC	888 First Street, NE		Washington	D.C.	20426
10	J.P.	Wolfin		U.S. Fish and Wildlife Service	Chesapeake Bay Field Office	177 Admiral Cochrane Drive	Annapolis	Maryland	21401
11	Joel	Gardner	Hydropower Coordinator	USDA Forest Service	Southern Region	1720 Peachtree Road NW, Room 792S	Atlanta	Georgia	30309
12	Donald S.	Welch	Regional Administrator	U.S. EPA	Region 3	1650 Arch Street	Philadelphia	Pennsylvania	19103-2029
13	Pat	Kurkul	Director	National Marine Fisheries Service	Northeast Regional Office	One Blackburn Drive	Gloucester	Maine	01930-2298
14	Regional	Director		National Capital Region	National Park Service	1100 Ohio Drive, SW	Washington	DC	20242
15	The Honorable	Virgil H. Goode, Jr.				1520 Longworth HOB	Washington	DC	20515
16	Joel	Hendrix		U.S. Army Corps of Engineers	Wilmington District	P.O. Box 1890	Wilmington	North Carolina	28402
17	Roger	White		USGS		1730 Parham Road	Richmond	Virginia	24328
18	Jerold	Gotzmer	Regional Engineer	FERC - Atlanta Regional Office	Parkridge 85 North Building