Power Group Online Article |  | |
Dominion was granted a certificate of public convenience and necessity by the Virginia State Corporation Commission (SCC) for its proposed 585 MW Virginia City Hybrid Energy Center. The station will be able to burn waste coal and biomass. Burned biomass will account for up to 20 percent of it fuel. Along with giving Dominion approval to build the station, the SCC set an initial authorized return on common equity of 12.12 percent. This includes a base return on equity of 11.12 percent and an incentive of 1 percent for new coal-fired generation. The incentive will apply through the first 12 years of the station's operation. Dominion has the option of applying at a later date for an additional 1 percent incentive by showing the station is carbon-capture compatible. Construction of the Virginia City Hybrid Energy Center is scheduled to begin once all permits are received. It is expected to go into service in 2012.
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