(The Center Square) – A proposed Dominion Energy gas-fired power plant in Chesterfield County is facing pushback from locals who argue the project could cost ratepayers at least $4.5 billion by 2064.
The project, known as the Chesterfield Energy Reliability Center, was formally submitted to the State Corporation Commission on March 3 as part of Dominion’s request for a certificate of public convenience and necessity. The proposal falls under Rider CERC, a rate adjustment clause allowing the company to recover customer costs over time. Critics argue that this could lock Virginians into decades of higher electricity bills.
The project is currently under review by the State Corporation Commission and is part of Dominion’s plan to expand natural gas generation as Virginia moves toward renewable energy sources.
In testimony before SCC, Dominion Energy witness C. Alan Givens stated that the company calculated rider CERC rates using the same methodology previously approved by the Commission for other rate adjustments.
The process includes forecasting kilowatt-hour (kWh) sales for different customer classes, including residential, business and data centers.
According to a recent regulatory filing, the estimate does not include potential increases in fuel costs. Dominion Energy filings show that customers would cover 50% of the project costs while businesses and data centers contribute only 11%.
Dominion Energy confirmed the $4.5 billion cost estimate.
Regarding cost concerns, Dominion told The Center Square in an email that the company estimates that building the plant will cost $1.47 billion and add an average of $1.36 per month to a typical residential customer’s bill over the project’s life. It noted that avoiding reliance on more expensive energy sources from elsewhere will ultimately save customers $1 billion over 30 years.
Due to the massive amounts they consume, data centers in Virginia are projected to be the largest driver of the commonwealth’s energy demand in the future.
“This project would saddle Virginians with a multi-decade financial burden of $4.5 billion—money that could be better invested in cleaner, more affordable energy solutions,” said Glen Besa, Board Chair of Friends of Chesterfield. “This staggering figure exposes the true cost of Dominion’s proposal and confirms that families and businesses will face significantly higher electric bills for decades to come.”
Beyond financial concerns, Virginia’s Clean Energy Act requires utilities to transfer to 100% clean energy by 2045. if approved, customers would be paying for the plant until 2064, two decades beyond Virginia’s renewable energy deadline.
The Chesterfield Energy Reliability Center will feature four natural gas-powered turbines capable of generating up to 944 MW, which is enough power for 240,000 homes. Dominion Energy claims the plant will act as an “always ready” backup source, able to start in as little as ten minutes.
The facility will also have a seven-day fuel oil supply and the potential for future hydrogen-blend use.
This article was originally published at www.thecentersquare.com
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