Resolution supports $1.8B hydroelectric pump storage system project

Posted on Aug 10, 2017

BLAKE STOWERS | Bluefield Daily Telegraph

 

TAZEWELL, Va. — Tazewell County officials have passed a resolution of support for the creation of one or more hydroelectric pump storage systems in Southwest Virginia.

Senator Ben Chafin, R-Russell, helped to write the bill in support of the hydroelectric pump storage systems.

Chafin spoke to the Tazewell County Board of Supervisors alongside Dan Poteet with Dominion Energy on Tuesday night.

“It’s great to be here before you tonight,” Chafin said. “I’m here to talk to you a little bit about the pump storage project and reacquaint you with that project. And to seek your approval on this project. It’s an exciting project for all the coalfield counties. As you know, Delegate Kilgore and I, each carried the bill that passed the General Assembly this last session. We found it in the public interest to allow the creation of one or more pump storage, hydroelectric facilities in coalfield counties in Southwest Virginia. We have a utility that is actively exploring locations for this type of facility in Southwest Virginia. So, we are quite excited that this is going to come to fruition.”

Several counties in the region have agreed to support Dominion Energy in the project across the coalfields of southwest Virginia. The company is currently looking at a number of sites in the coalfield counties for the project, which would create hundreds of jobs during the multi-year construction phase, and approximately 50 permanent positions. The hydroelectric storage power station will cost more than $1.8 billion to build, and would provide millions of dollars in new tax revenue for the locality that is ultimately selected for the development.

Chafin said the new projects will bring a lot of revenue to Southwest Virginia.

“It will bring a lot of investment to Southwest Virginia,” Chafin said. “It will allow investment to our coalfield counties in a way that we have not seen in quite some time. And it will allow our coalfield counties to share this revenue. That’s what we’re here seeking tonight, is your favor, your blessing on the project. We’d like you to embrace the project and say that it is good project and would be welcome in the coalfield counties.”

Chafin also asked the board to bless the concept of revenue sharing.

“I have gone to counties, all the time, I hear the same stories,” Chafin said. “The counties say we never get this. We don’t get any benefit out of it. I know that the Virginia City Plant that is in St. Paul and Wise County. It’s like a city. It’s a wonderful thing. But, it’s sitting just a few hundred yards from the county line with Russel County, but all the revenue goes to Wise County and the town of St. Paul. We came up, the legislators, came up with the idea that we want this to be a revenue share. We don’t think it would be happening without the efforts of the General Assembly, running forward, making it more streamlined, getting it through the legislative process.”

Chafin said he hopes this is the beginning of one of many projects where counties can be a part of the revenue sharing. “We hope that everybody can help get a piece of the action and everybody be a winner,” Chafin said. “The investment that will be made to build this facility and whatever county is chosen will be a significant investment. And will help some of the losses that were sustained over the last eight or nine years, in the down tick of the coal industry.”

According to Chafin, approximately 1,500 or 2,000 new jobs will be brought to the area during the construction phase of the project.

Eastern District Board of Supervisor Charlie Stacy asked if a renewable source was a part of this particular project during the presentation. “The way I understood it, it has to be a renewable source, so one way or the other, whoever gets picked is getting wind or solar. Is that going to be in close proximity to the facility? Where does the renewable have to go?”

Chafin said the renewable source can run in a different county. “It has to be in the coalfield counties,” Chafin said. “The renewable component of this can be in a different county, but the beauty of it is, from our standpoint is when we drafted the legislation we were careful and encouraged to include the idea that there might be more than one of these (facilities). We might be able to get more than one of these down the road. This particular facility acts as a giant battery.”

According to earlier reports by the Bluefield Daily Telegraph, hydroelectric pump storage facilities act as large batteries that store energy in the form of water. During off-peak energy hours, when demand is lower, less expensive energy is used to pump water from a reservoir at a lower altitude up to a reservoir at a higher altitude. The water is stored in the upper reservoir until an on-peak period, or period of high demand. At that point, the water is allowed to flow downhill to a power generation facility where it spins turbines. The turbines activate generators that produce electric power that is then delivered to the electric grid.

Poteet said within this region, the Regional Transmission Organization basically governs Dominion Power. “Within that group is PJM, PJM represents 13 states,” Poteet said. “Within PJM they have different regions or service territories. For the past several years, the Dominion zone has been the largest growing in need of electricity in the United States.”

Southern District Supervisor Mike Hymes said the presentation regarding the hydroelectric pump storage was very interesting.

“I am hopeful our county will be selected for one of these projects,” Hymes said. “I am still concerned about this technology being a competitor for coal and gas fired power generation, but I hope the electric demand will increase so this technology will be needed. As I said to the Dominion representatives last night, our county has several county owned areas that we could use as sites for solar energy installations.”

Chafin said officials were able to get this bill out without opposition. “So, I believe that if there had been some thoughts that some how it was not good for coal those would have surfaced, Chafin said. “Also, as David said, it’s going to take a lot of coal to produce the energy to pump that water up there (within the facility) too.”

Dominion Energy is one of the nation’s largest producers and transporters of energy, with a portfolio of approximately 26,200 megawatts of generation, 15,000 miles of natural gas transmission, gathering and storage pipeline, and 6,600 miles of electric transmission lines.

— Contact Blake Stowers at bstowers@bdtonline.com

 

Article originally posted online @ http://www.bdtonline.com/news/resolution-supports-b-hydroelectric-pump-storage-system-project/article_3bd99dd2-7d69-11e7-bebe-77e762edd3df.html