Surry Power Plant Delayed

Wednesday, September 08, 2010

Old Dominion Electric Cooperative announced Wednesday that it will delay building the large coal-fired power plant planned in Surry County for another 18 to 24 months.

ODEC received approvals earlier in the year from the town of Dendron, the Surry County Board of Supervisors and the Sussex County Board of Supervisors to build the largest coal-fired power plant in the state. The company finalized the purchase of 1,600 acres in July this year, and has so far spent $20 million on the 1,500-megawatt power plant. Local and state environmental groups have been working to keep the plant from being built due to high mercury emissions and impacts on health and water and air quality, and some Dendron residents are suing to keep the plant out of town.

The company is extending the permitting schedule for 18 to 24 months, but, “This adjustment to our timeline does not in any way reflect a change in our goal of building the Cypress Creek Power Station to provide a reliable source of affordable electricity to meet the growing demand for energy,” said C. David Hudgins, ODEC’s director of member and external relations.

Local environmental groups were quick to respond to the news.

Glen Besa of the Virginia chapter of the Sierra Club said, "This is a prudent pause by ODEC. With the advances in efficiency and renewable energy this delay allows ODEC to keep their options open."

Those options might include waiting until improved technologies can create a cleaner energy source.

"All Virginians-watermen on the Chesapeake Bay, downwind families affected by smog and soot pollution, ODEC customers who would be facing higher electric bills to pay for the new plant-can breathe a sigh of relief, but this is not over.  The coalition remains engaged in the permitting processes before the Army Corps of Engineers and elsewhere, and we hope to work with ODEC on the clean energy alternatives that produce jobs, keep electricity rates down, and reduce harmful air and water pollution," said Southern Environmental Law Center senior attorney Cale Jaffe.

A written statement by the Chesapeake Bay Foundation expressed hope the delay was the "beginning of the end" for the plant.

"ODEC and surrounding localities should use this time to carefully consider the damaging environmental impacts the plant will have on the region and to pursue less harmful alternatives, such as energy efficiency and conservation, that have already been identified as the quickest, most cost-effective ways to meet Virginia's future energy needs," the statement read.

"After carefully analyzing the impacts on the Bay watershed from the proposed power plant, it is apparent that the facility represents a step backward in restoring the ecological and economic viability of the Chesapeake Bay and air quality in the Hampton Roads, Richmond, and Northern Virginia areas, even after the application of stringent pollution control technologies."

ODEC originally planned to have the plant operational in 2016.

“ODEC and our 11 member distribution cooperatives have invested a significant amount of time, money and other resources to purchase the property and secure local approvals for the project, and we have no intention of turning back now.”

Hudgins said the demand for electricity continues to grow, but the slowdown in economic growth has resulted in slower than expected demand. The extended timeline will allow more time for the federal government to address uncertainty in energy and environmental policies, such as the fate of proposed “Cap and Trade” legislation and EPA regulations, according to Wednesday’s press release.

“Finding additional base load generation is a high priority for us,” said Hudgins. “For this reason, we are continuing to take steps toward the construction of the Cypress Creek Power Station. ODEC will also continue to defend against the legal challenge to the local zoning approval.”

ODEC is a cooperative that provides wholesale power to 11 electric distribution cooperatives in Virginia, Maryland and Delaware. ODEC and its members provide electricity to nearly a million people in the region.