Old Dominion to Delay Permitting for Proposed Va. Coal-Fired Plant

Old Dominion Electric Cooperative (ODEC) last week said it would delay plans to obtain air permits necessary to begin construction of its proposed coal-fired Cypress Creek Power Station in southeastern Virginia, citing a slump in demand growth caused by the slackened economy.

The cooperative that provides wholesale power to 11 local member distribution cooperatives in Virginia, Maryland, and Delaware said that it remained committed to building the plant, however. The permitting schedule is expected to restart in 18 to 24 months, it said.

“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. “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 also said that the extended timeline would 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 [Environmental Protection Agency] regulations.”

“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.”

The plant’s preferred site is a 1,600-acre property in the Dendron area of Surry County. An alternative site is a 1,200-acre property in Sussex County. More than $20 million has already been invested in the project, including buying the Dendron, Surry, and Sussex properties.

The proposed Cypress Creek plant will potentially produce between 750 MW and 1,500 MW. ODEC says on its website that it will likely use biomass as well as coal at the facility.

Sources: POWERnews, ODEC