Dominion has joined with BP Alternative Energy North America Inc. to jointly develop, own and operate wind energy projects in Virginia. In a prepared statement, Dominion CEO Thomas F. Farrell II said:
Today’s announcement is another important step in continuing to grow Dominion’s portfolio of renewable energy projects – which include more than 750 megawatts of wind in operation or under development – to help provide for our customers’ growing electricity needs. We are committed to meeting Virginia’s goal of 12 percent of base-year electricity sales from renewable energy sources by 2022. We also plan to achieve North Carolina’s goal of 12.5 percent from renewable energy sources and energy efficiency by 2021.
I’m all in favor of wind power and other alternate energy sources. But I also think it’s important to know how the cost of these fuel sources compare to the alternatives, such as “clean” coal (assuming it’s possible to make coal a “clean” fuel), nuclear, natural gas or…. conservation. Notably missing in Dominion’s press release is any estimate of how much the wind power is expected to cost per kilowatt hour. The public can’t make intelligent trade-offs without such knowledge.
I think we’ll find that Dominion is perfectly happy to develop wind power and other alternate energy sources. As long as the State Corporation Commission allows the company to charge electricity rates that generate a competitive return on investment, why should the utility care how much it costs? Even better, if the electricity comes from an energy source favored by environmentalists, the company is less likely to encounter the kinds of protests and resistance that it has experienced with its proposed coal plant in Wise.
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