SCC Says Dominion Must Seek Third-Party Solar Alternatives

solarThe State Corporation Commission has nixed Dominion Virginia Power’s proposal to construct a 20-megawatt solar projects near its Remington Power Station in Fauquier County, stating that the power company must first see third-party alternatives.

In its final order, the Commission said, “As a ‘small renewable’ solar project, the Remington Solar Facility is one type of generation resource that the General Assembly has identified as in the public interest. … The General Assembly, however, has not declared it to be in the public interest that renewable power can only be obtained from the applicant’s own self-built project … or at any price, no matter how burdensome to consumers.”

The estimated cost of the proposed facility would be $2,350 per kilowatt, and its capacity factor (the percentage of time that it would operate) would be 22 percent. “The comparatively high cost to consumers and low capacity factor … underscore that serious and credible efforts, as required by the General Assembly, must be made to determine whether lower cost alternatives for obtaining renewable power are available in the market from third parties.”

Dominion issued the following response:

We are disappointed in this setback in our efforts to add  renewable energy. We believe we have shown this project is among the most cost-effective ways to add solar generated capacity in Virginia. Large-scale solar is needed in order to meet new federal carbon rules, diversify Dominion’s fuel mix and support bipartisan legislation passed in the General Assembly and signed by the governor, to build at least 500 megawatts of solar generation in the state by 2020.  We are evaluating our options regarding this project.

The SCC invited Dominion to re-file after seeking third-party alternatives. See Dominion’s Remington solar page here.

— JAB