Dominion's Proposed Peaker Gas Plant in Chesterfield Sparks Conflict Over Energy Reliability and Pollution Concerns

Strategic Insights -

Community members and state officials in Virginia expressed strong opposition to Dominion Energy's proposed peaker gas plant in Chesterfield during a Department of Environmental Quality air permit hearing on September 8, 2025. The $1.4 billion project aims to provide reliable energy during peak demand days, but critics argue it will exacerbate pollution and worsen health outcomes in the area.

The proposed Chesterfield Energy Reliability Center would be built on the site of a former coal-fired power plant, which has been closed for two years after operating for over 70 years. The new plant would only run about 37% of the time during peak demand days, but supporters argue it is essential for maintaining grid reliability.

However, state legislators, community members, and environmental advocates raised concerns about the project's potential impact on air quality and climate change. They cited the Virginia Clean Economy Act's mandate for utilities to use 100% renewable energy sources by 2050 as a reason to reject the project. A letter signed by 20 state legislators urged the State Corporation Commission to reject Dominion's application of necessity and for the Department of Environmental Quality to reject the air permit.

Key Takeaways:

  • The proposed Chesterfield Energy Reliability Center would be built on the site of a former coal-fired power plant, which has been closed for two years.
  • The new plant would only run about 37% of the time during peak demand days, such as the hottest and coldest days of the year.
  • State legislators, community members, and environmental advocates expressed concerns about the project's potential impact on air quality and climate change.
  • The Virginia Clean Economy Act mandates utilities to use 100% renewable energy sources by 2050.
  • A letter signed by 20 state legislators urged the State Corporation Commission to reject Dominion's application of necessity and for the Department of Environmental Quality to reject the air permit.
  • The proposed project could add an estimated $1.36 to the average customer's bill for the entire life of the project, which would span decades.
  • Dominion Energy is also seeking to raise the base rate by $10 over the next two years.
  • The new plant would generate up to 1000MW of energy, enough to power 250,000 homes.
  • The project's construction is expected to cost approximately $1.4 billion.
  • The energy production would be anticipated to come online in 2029 if approved.

Statistics:

  • The proposed project would add an estimated $1.36 to the average customer's bill for the entire life of the project.
  • Dominion Energy is seeking to raise the base rate by $10 over the next two years.
  • The proposed plant would generate up to 1000MW of energy, enough to power 250,000 homes.
  • The project's construction is expected to cost approximately $1.4 billion.
  • The energy production would be anticipated to come online in 2029 if approved.
  • The new plant would only run about 37% of the time during peak demand days.

Sources:

  • https://virginiamercury.com/wp-content/uploads/2025/09/September-2025-Letter-Chesterfield-Peaker-Plant.docx.pdf (September 2025 Letter - Chesterfield Peaker Plant)
  • https://www.deq.virginia.gov/home/showpublisheddocument/30674/638901651332430000 (Department of Environmental Quality air permit hearing)
  • https://www.dominionenergy.com/about/making-energy/power-stations/chesterfield-energy-reliability-center (Dominion Energy's Chesterfield Energy Reliability Center page)
  • https://virginiamercury.com/2024/12/18/virginia-to-host-worlds-first-fusion-power-plant/ (Virginia to Host World's First Fusion Power Plant)