Dominion Virginia Power says new natural gas-fired plant best option

Dominion Virginia Power (NYSE: D) told state regulators this week the company’s plans for the Brunswick County power station is the best option for its customers, according to a report from the Richmond Times-Dispatch.

The utility’s statement was a response to a Virginia State Corporation Commission hearing examiner’s recommendation to deny the company’s application to build the 1,358 MW gas-fired power station, according to the report. The project is expected to cost $1.3 billion and add 83 cents to the average residential customer’s monthly bill.

Although the hearing examiner stated Dominion Virginia Power did not fully explore outside alternatives to building the new plant, the utility said alternatives were considered but were not as “cost-effective or in-line with customers’ interests compared to Brunswick,” according to the Times-Dispatch.

The utility also said the station should save almost $1 billion over its expected life compared with the next-best option and meet customer demand for more generating capacity beginning in 2016, the report stated.

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