Bacon's Rebellion

Democracy Thrives in Sunlight

The Virginia City Boondoggle

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Peter Galuszka
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The Virginia City hybrid energy center. Credit: David Hoffman, Flickr

By Peter Galuszka

Back in 2007, Dominion Energy was touting its new hybrid generating plant near St. Paul in Southwest Virginia as the wave of the future because it would burn coal and wood using advanced fluidized bed technologies.

But for eight months this year, the 624-megawatt Virginia City Hybrid Energy Center operated at only 20% and has never reached more than 65% capacity since going online in 2012.

Now, the utility must face the fact that it may close the plant, according to a new report by the non-profit Institute for Energy Economics and Financial Analysis. Dominion has said it intends to keep the plant open.

If it closes, it would affect 153 full-time jobs and 400 additional ones. Localities would lose from $6 million to $8.5 million in taxes.

The Institute undertook its research at the request of Appalachian Voices, an environmental group. It is based on testimony provided to the State Corporation Commission by Atty. Gen. Mark Herring that ratepayers would have to shell out $472 million more than the plant is worth over the next 10 years.

I visited the plant site in 2007 for Bacons Rebellion. Then, as now, it is highly controversial. Thirteen years ago, there were concerns that it would increase carbon pollution, accelerate disastrous mountain-top removal coal mining and wasn’t needed.

More recently there have been major strides in shunning fossil fuel plants for the same reasons. Dominion is going along with legislation to use solar and wind projects to go carbon-free by 2045.

What’s curious is that some on this blog, including one with ties to a think tank funded in part by the fossil fuel industry, argue that fossil fuel is necessary because renewable sources, wind in particular, cannot be relied upon for steady energy generation. They complain that ratepayers are getting stuck with the bill for “boondoggles” such as a large wind turbine farm planned off of Virginia Beach.

What, however, is a bigger boondoggle? The Virginia City plant or offshore wind which could add thousands of new jobs in Hampton Roads?

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45 responses to “The Virginia City Boondoggle”

  1. Steve Haner Avatar
    Steve Haner

    The plant has accomplished its purpose. It got Delegate Terry Kilgore to cast a vote in favor of that abomination, the Virginia Clean Energy We Don’t Actually Need Act. Keeping this on life support was his payoff. From its inception in 2007 it made no sense from an energy or engineering standpoint, but it locked in the GOP votes in that region to whatever BS Dominion was peddling any given year. I’m proud to say I tried to scuttle it at the Assembly, only to get other priorities of my employer threatened, and then we fought it at the SCC.

    The offshore wind is a bigger boondoggle by a factor of ten, easy. That’s why Dominion offered the political payoff to Kilgore.

    You can search back ten years on this blog and you find I’ve consistently challenged coal as an energy fuel. This plant shouldn’t have been built. If you want to say my bias was toward nuclear, that I cannot deny. The main partner to that should be natural gas, and not with plants two hundred miles outside Dominion’s service territory. But I have never touted coal. The coal economy built our great industrial success, won two world wars, but it has been replaced by better choices.

    1. Rowinguy Avatar
      Rowinguy

      This plant was mandated in the 2007 Electric Restructuring bill, and got not only TG but also Bill Wampler and many other canny Southwest Va legislators’ votes, as they held out until the plant was added as an “economic development project.” The Restructuring bill did not really advance clean energy so much as incent the development and construction of massive nat gas burning facilities.

      Maybe TG still felt obligated to support the Clean Energy Act some 13 years later solely because of the VCHEC, but I sorely doubt it.

      I do agree that the Offshore Wind projects will likely be a far bigger boondoggle than the VCHEC, which has been a dog from the outset.

  2. LarrytheG Avatar
    LarrytheG

    My impression was that that plant was a “jobs” issue for that reason, not unlike some others that were more focused on providing the jobs than whether the facility itself was justified.

    I wonder if they proposed turbines in that same region, how that proposal would fare?

    And finally, Iwonder , why the anti-coal, pro-nuclear, pro- help to SW Va won’t support a new Nuke or two? Seems like if they can propose some bogus gigantic pump storage reservoir, they could also propose some new Nukes- GREEN ENERGY!

    1. Steve Haner Avatar
      Steve Haner

      The other major investor owned utility, APCo, did explore nuclear for a while. New build is incredibly expensive, and from an economic standpoint gas is the better choice. It is being rendered politically unstable with the all-out PR assault from people like Peter.

    2. Rowinguy Avatar
      Rowinguy

      There’s no place in SW Va with enough water to build a coal unit, let alone a nuclear plant, for one. And, as Steve has noted, it is hugely expensive.

  3. Peter Galuszka Avatar
    Peter Galuszka

    “An all out political assault by people like Peter?” Where did you get that nonsense?
    See:
    https://www.styleweekly.com/richmond/the-green-nuke/Content?oid=1360846

    Not my fault that new nukes are $15 billion. Are you going to blame me for that too?

    1. LarrytheG Avatar
      LarrytheG

      How does that compare to offshore wind and the pump storage idea?

      Also – if you asked “greenies” how the grid should be powered and they had to choose – between gas and nukes – would they?

      I personally do not understand why our only apparent option for Nukes is 60-year old technology.. that is not only expensive but still risky.

      Why do we not have more modern, cheaper and safer designs?

      ‘Will the Biden Dept of Energy fix this?

      1. Steve Haner Avatar
        Steve Haner

        No, the Biden administration will go full bore ahead with wind, solar and fairy dust. At NNS we were working in partnership with AREVA on next generation nuclear designs to be built in Virginia and then along came Fukushima. The Chinese are building plants with the new designs. The space in the yard where the AREVA plant was to be is now a new facility building nuclear missile submarines that will be targeting China when finished. Irony.

        1. LarrytheG Avatar
          LarrytheG

          sounds like they are including nuclear:

          “Granholm as energy secretary would oversee U.S. scientific research and the nation’s nuclear weapons arsenal. The nuclear program comprises about 75%, or $27 billion, of DOE’s budget. She also could incentivize low-carbon energy sources through federal loan programs, and would be expected to help pursue Biden’s pledge to achieve net-zero carbon emissions in the U.S. by 2050. The president-elect has said he would pledge $2 trillion to help the U.S. eliminate emissions of greenhouse gases. Biden has said the money also would be used to upgrade the nation’s power grid, and to support electric vehicles and battery energy storage, along with advanced nuclear power and carbon capture technologies.”

          https://www.powermag.com/former-michigan-gov-granholm-set-to-lead-doe/#:~:text=Granholm%20as%20energy%20secretary%20would,%2427%20billion%2C%20of%20DOE's%20budget.

          I expect Biden to pursue more modern and safe nuclear – modular small reactors that won’t melt down.

          I expect the natural gas folks to fund nuclear fear porn.

          1. TBill Avatar
            TBill

            LG> I expect the natural gas folks to fund nuclear fear porn.

            More liberal hate speech- tell me when you see an example of this

        2. Nathan Avatar
          Nathan

          “then along came Fukushima.”

          It is my understanding that even our older plants don’t have the flaws of the Fukushima plant. Most unfortunate that the baby got thrown out with the bathwater.

          “Fukushima disaster was preventable, new study finds
          Critical backup generators were built in low-lying areas at risk for tsunami damage — despite warnings from scientists”

          https://news.usc.edu/86362/fukushima-disaster-was-preventable-new-study-finds/

          1. Nancy_Naive Avatar
            Nancy_Naive

            Earthquake is our biggest problem, but on the East coast, there are a couple (SC, GA?) in flood zones. Don’t know how they came through Matthew. And tornadoes present power outage problems.

            Of course if the west side of the Canary’s slides in, then North Anna may have a problem… but then we won’t care.

        3. WayneS Avatar
          WayneS

          “…nuclear missile submarines that will be targeting China when finished.”

          As long as their Chinese-made electronic components will LET them target the Chinese…

          😉

          1. Nathan Avatar
            Nathan

            The Chinese won’t let that happen. They’ll just wire more money to the Biden family.

      2. WayneS Avatar
        WayneS

        “‘Will the Biden Dept of Energy fix this?”

        If Biden, his family and his cronies can make money off it I’m sure they’ll try.

        1. Nancy_Naive Avatar
          Nancy_Naive

          OTOH, given his track record, Trump would have lost money, gone BK, or screwed the contractors, so…

          1. WayneS Avatar
            WayneS

            I guess it’s a matter of “pick your poison”, eh?

          2. Nancy_Naive Avatar
            Nancy_Naive

            Always. No?

    2. LarrytheG Avatar
      LarrytheG

      I’m thinking the New River has enough water in it compared to the James or for that matter the North Anna which has 1/10 the flow of either of the two bigger rivers.

      I don’t know how many jobs a Nuke would provide but not that many and most would require higher education levels so probably not a big job producer.

      Dominion is an investor-owned company – they make money for investors, not necessarily create jobs for Virginia (or anyone else) unless it happens to be a nice byproduct or they are promised money to do it – like anything else they’d be promised money to do!

      😉

  4. wpeabody.fcta Avatar
    wpeabody.fcta

    1 in 10 of green jobs in Spain are permanent.

  5. wpeabody.fcta Avatar
    wpeabody.fcta

    The green-ers ignore the results in Europe.
    In 25 years all yea voters will be dead or out of office.

  6. TBill Avatar
    TBill

    Surprising, and who knew?
    Former Gov Kaine was a huge champion of this plant, which I never liked. It was a big but not humongous coal plant.

    In 2012, I was far left of the liberals. Now the liberals are so far left of me, they are out past Mars to Pluto maybe even leaving the solar system soon.

  7. WayneS Avatar
    WayneS

    Dominion specializes in boondoggles, don’t they?

    1. djrippert Avatar
      djrippert

      Dominion specializes in buying off The Imperial Clown Show in Richmond which then not only allows but endorses boondoggles.

      In Virginia, the anti-corporatist Democrats count among their leaders the biggest Dominion flack of them all … Dominion Dick Saslaw.

      Never trust a Virginia Democrat discussing energy unless they firmly disavow their own Majority Leader of the Senate and his gang of droogs including such luminaries as Janet Howell.

  8. LarrytheG Avatar
    LarrytheG

    Two things are true about Dominion:

    1. – They are in business to make money and will do whatever the payer wants as long as they get their profit from it.

    2. – “Jobs” can work the same way. Whatever that job actually is or it’s value to the economy of others is secondary – thus “boondoggles” work just as good as providing “jobs” as non-boondoggles and especially so in economically-distressed regions like SW Va.

    So – burning coal and wood is “good”, and so is a massive pump-storage project but maybe not so much wind turbines or a nuke plant?

    1. TBill Avatar
      TBill

      Democrat view of Energy-
      1900-2012 Coal coal coal coal (hatred for oil/gas )
      2012+ Anything but oil and gas

      1. idiocracy Avatar
        idiocracy

        That probably roughly corresponds to the time that coal-mining areas largely stopped voting for Democrats.

  9. Nancy_Naive Avatar
    Nancy_Naive

    LEAVES! Just collect the leaves in the fall. Grind them to PM2.5, mix with liquid paraffin for a slurry and inject into the boilers! Ooh, ooh, and in ground up pizza boxes, too, since they can’t recycle them.

    1. WayneS Avatar
      WayneS

      Where will you get the paraffin? Coal, petroleum or shale oil is needed to make it. And we can’t use any of that stuff any more – it’s not renewable.

      I suppose we could go back to whale oil if we could find a way to make it renewable. Maybe we could genetically engineer a species of whale that has renewable blubber. Instead of killing the whales get whale oil, every spring they could be “tapped” and a certain amount of blubber/oil harvested. The rest of the year they spend producing more blubber. Sort of like the way we get syrup from maple trees.

      It would create a whole new industry – Whale Ranching…

      1. Nancy_Naive Avatar
        Nancy_Naive

        Remnants of Yankee Candles.

        1. WayneS Avatar
          WayneS

          And after the manufacture of Yankee Candles is banned? What then? Remnants of white-market Yankee Candles?

        2. djrippert Avatar
          djrippert

          Thank God you referenced Yankee Candles. Any reference to Confederate Candles would have required you to cancel yourself.

          1. Nancy_Naive Avatar
            Nancy_Naive

            Confederate Candle? Oh, you mean black churches!

    2. TBill Avatar
      TBill

      Actually they ought to consider if they can purpose the plant for refuse derived energy or nat gas.

    3. idiocracy Avatar
      idiocracy

      Just be sure to inject enough air into the firebox to ensure complete combustion of the leaves.

      Because burning leaves really stink. I hate that smell.

      1. Nancy_Naive Avatar
        Nancy_Naive

        That’s why the paraffin. Rename the place to Yankee Candle Power

      2. LarrytheG Avatar
        LarrytheG

        more than chitlins?

  10. sherlockj Avatar
    sherlockj

    Don’t hold your breath for the Biden administration to sponsor the creation of more nuclear plants. I hope they will, but I can’t see it happening.

    The green all stars that he is appointing to related positions in his administration nearly all are on record opposing nuclear, as is the huge and very well funded “not-for-profit” green world.

    Several things that would need to happen for any bill enabling the building of nuclear plants to work. It would have to limit the legal liability of those plants to preclude them getting sued forever. Write the law so that only the federal government can be sued over federally-approved projects, not the developer and not state and local governments. Let the federal nuclear regulatory agencies ensure their safety.

    And build them on federal land to preclude state and local governments from using zoning to deny them.

    It is the “citizens’ suits that make not only that $15 billion number happen, Peter, but make development take 25 years.

  11. Peter Galuszka Avatar
    Peter Galuszka

    Capt. Jim. If I recall correctly, new nukes in South Carolina failed because Toshiba and Westinghouse screwed up badly. Why not blame the corporate sector, not just the greenies?

    1. Nancy_Naive Avatar
      Nancy_Naive

      The “six phases of a project” have been described as:
      Enthusiasm
      Disillusionment
      Panic
      Search for the guilty
      Punishment of the innocent
      Praise and honors for the non-participants

      1. TBill Avatar
        TBill

        Believe our version was 4 rules:
        Wild enthusiasm (eg; breakthru electric batts)
        Bitter Disappointmemt
        Punishment of the Innocent
        Promotion of the non-participants

  12. James Wyatt Whitehead V Avatar
    James Wyatt Whitehead V

    Closing this plant would hit Wise County hard. The 2016 budget was 48 million and in 2020 it was 50 million. Welfare aid is almost equal to real estate and personal property taxes collected. Virginia City has added something this region has a hard time finding. The jobs and income cannot be replaced. Why punish a place that already has a tough time just getting by? Ironic that Napoleon Hill, author of “Think and Grow Rich” is from this county.

  13. LarrytheG Avatar
    LarrytheG

    153 full-time jobs,,,,,,,, ratepayers would have to shell out $472 million more than the plant is worth over the next 10 years.

    If I did my math correctly, it’s about $370,000 per job and Dominion ratepayers are paying for it – AND – LIKE those other “hidden” taxes that Steve likes to allude to – most ratepayers have no clue this is part of their bill at the SAME TIME that Dominion is NOT paying back the excess profits nor the tab rebate they got and THAT is in ratepayers bills also.

    Yet, all the fire and fury from “fiscal conservatives” is directed mostly towards that “offshore boondoogle” and solar and green energy boondoogles!

    If this was about solar/wind farms to provide jobs for SW folks – at $370,000 per job, you can bet the critics who both claim to be fiscal conservatives and “skeptics” of “green” energy would be apoplectic!

    1. djrippert Avatar
      djrippert

      Ha ha. This fiscal conservative could only provide more “fire and fury” against Dominion and their enablers in the General Assembly if he stopped sleeping at night.

      This power plant is a classic story of The Virginia Way, the political philosophy of the most corrupt state in America.

  14. LarrytheG Avatar
    LarrytheG

    I’m actually in favor of jobs programs for Western Virginia but not ones that are obvious boondoogles.

    Newer, better schools and Community Colleges to re-train folks in jobs that do exist. Newer, better medical clinics and nurse/assistant medical folks. Broadband and wind/solar where appropriate.

    Focusing backward on energy technologies that are dead and dying and trying to hold on to them is a losing game.

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