Dominion plans to close Chesapeake coal plant by 2016

• 12 years ago (2011-09-02)
• David Flin

North America 998

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The USA’s Dominion Virginia Power filed plans with Virginia state regulators to close its coal-fired power plant on the Elizabeth River’s Southern Branch by 2016 because the cost to upgrade it to meet proposed new environmental standards is too high.

The planned closure of the 638 MW Chesapeake Energy Centre was included in the integrated resource plan Dominion must update every two years with the State Corporation Commission. The plan projects growth in customer demand over 15 years and outlines how the utility intends to meet it.

Dominion officials have stated that the plan to close the plant is dependent upon details of the new federal rules on air- and water-quality are finalised. J David Rives, Dominion’s Senior Vice President of Fossil and Hydro Generation, said: “Our plan might very well change.”

The proposed air-quality standards would require Dominion to reduce mercury, NOx and SOx emission levels at the Chesapeake plant. This would require installation of scrubbers and fabric filters. The draft water-quality rule would require Dominion to construct cooling towers at the station. Rives said that these changes would cost about $1 billion to extend the life of the 58-year-old plant.

Dominion is seeking permits for a new natural gas-fired plant that would generate 1200 MW at a projected cost of $1.1 billion.

Dominion’s resource plan also includes the potential closure of one of its two coal-fired units at Yorktown Power Station by 2015. The company would convert the second coal-fired unit to natural gas.