The Richmond, Virginia-based utility said the conversions of the power stations, located in Altavista, Hopewell and Southampton Counties, would increase its renewable generation capacity by more than 150 megawatts, enough to power 37,500 homes.
The proposal is part of the company's commitment to have 15 percent of its electricity come from renewable sources by 2025.
According to a written statement from the utility, the switch to biomass – in this case primarily waste wood left over from regional timber operations – would reduce nitrogen oxides, sulphur dioxide, mercury and particulate emissions and meet stringent emissions standards established by the Virginia Department of Environmental Quality and the US Environmental Protection Agency.
“The biomass conversions will benefit our customers, the environment and the state's economy," said David A. Christian, chief executive officer of Dominion Generation, the unit of the company that operates its power stations. "The converted units will provide low-cost, renewable, base load energy, while promoting economic development through the use of a locally produced fuel."
The cost of converting the stations would be about $165 million, or $55 million per station. The utility is requesting of rate increase of about 14 cents a month per residential customer, effective 1 April 2012, to pay for the initiative.
Rate adjustment clauses allow utilities to collect financing costs over time as projects begin, lessening the larger rate impact that could occur when power stations go into service.
The conversions would be complete by the end of 2013.
The power stations, which would generate about 51 megawatts each, are nearly identical. The incremental statewide economic benefit of converting the stations is estimated to be more than $120 million annually when compared to continued operations on coal, including the creation of more than 300 jobs in the forestry and trucking industries.
The conversions would also create approximately 160 jobs during the construction period.
The stations have been primarily peaking power units, operating 25 percent of the time. If the conversions are approved, they would be more economic to operate and, therefore, would be expected to generate electricity about 90 percent of the time.
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