RICHMOND, Va., Nov. 2, 2012 /PRNewswire/ -- Dominion Virginia Power today asked its Virginia regulator to approve construction of a 1,358-megawatt combined cycle, natural gas-fired power station that would serve growing customer demand and replace electricity from aging coal-fired power stations that are being retired for economic and environmental reasons.
If approved by the Virginia State Corporation Commission (SCC), the $1.3 billion power station would be built in Brunswick County on a 214-acre site on U.S. Route 58 east of Lawrenceville, Va., and begin providing enough electricity for 340,000 homes by the spring of 2016. The initial increase in the monthly bill of a typical residential customer using 1,000 kilowatt-hours of electricity would be 83 cents, effective Sept. 1, 2013.
"The Brunswick County Power Station is the clear economic and operational choice to meet our customers' growing energy needs," said Thomas F. Farrell II, Dominion's chairman, president and chief executive officer. "The station is a part of our strategy to meet an anticipated demand from our customers for 5,300 megawatts of new generation over the next 15 years."
PJM Interconnection, the 13-state regional transmission organization, projects that Dominion's service area will be one of its fastest growing regions. To meet the projected growth, Dominion's strategy calls for a cost-effective and low-risk approach that emphasizes a balanced and diverse fuel mix of nuclear, natural gas, coal, hydro and renewable energy sources, and conservation options.Also, Brunswick County Power Station is needed to replace more than 900 megawatts of coal-fired generation from the Chesapeake Energy Center and Yorktown Power Station, which will be retired by 2015 because new federal environmental regulations make them uneconomic to continue to operate. Likewise, more than 19,000 megawatts of coal-fired generation will be retired from 2011 through 2019 in PJM, with most retiring by the end of 2015.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts