Dominion picks Wise County site for proposed power plant

by Heather B. Hayes
for Virginia Business
July 2006

Already known for its coal operations, Wise County may be taking on a bigger role in the energy industry. Richmond-based Dominion Resources, one of the nation’s largest energy companies, has chosen a reclaimed strip mine near the town of St. Paul for final evaluation for a $1 billion coal-burning power plant.

A group of energy companies, led by Dominion, studied several sites in Southwest Virginia for the new plant. It found that the Wise County site scored highest on a set of assessment criteria, which included adequate fuel and water supply, construction logistics, electrical transmission requirements and minimal environmental impact.

But officials at Dominion and Virginia Coalfield Economic Development Authority (VCEDA) were quick to caution that site selection was just a first step in the evaluation process. At the very earliest, the plant would begin operating by 2012, says Dominion spokesman David Botkins.

Dominion’s customer base is growing 2 to 3 percent annually. At that rate, the company will need additional generating capacity by 2012. The new power plant, Botkins says, is being planned to meet this demand. It would be capable of producing 500 to 600 megawatts of electricity annually. To be built, the plant must obtain environmental permits and approval from federal and state regulatory bodies. The proposed plant would use Virginia coal in a process designed to reduce emissions of sulfur dioxide and other pollutants. The plant also would use waste coal and renewable energy sources, such as wood waste.

“ A major component of our economic development philosophy is to add value to our natural resources before they leave the region,” says Charles S. Yates, executive director of the VCEDA. “This project will do that, as well as create a significant number of well-paying jobs and a substantial investment in the local economy.”

If plans go forward, the proposed power plant would create an estimated 800 construction jobs, 75 permanent jobs at the power plant and 250 coal-mining jobs once the plant is up and running. Wise County officials estimate that the plant would generate $4 million annually in county taxes, a 29 percent increase over its current tax revenue.