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Dominion gets the go-ahead for Warren County generating facility
By Joe Beck -- jbeck@nvdaily.com
FRONT ROYAL -- Local officials believe hiring for more than 1,000 jobs will begin within a few weeks following state approval Thursday of a gas-fired power plant to be constructed by Dominion Virginia Power.
The Warren County Power Station cleared its final hurdle with the State Corporation Commission's acceptance of the $1.1 billion project to be built on 39 acres in the Warren Industrial Park about three miles from Front Royal. The project is scheduled for completion in December 2014.
The commission's final order found that the project and an accompanying transmission line and power station "will serve the public convenience and necessity and are in the public interest."
Town and county leaders hailed the commission's decision, which followed 11 years of effort to make it a reality.
"I'm excited," Mayor Timothy W. Darr said. "It will definitely give us an economic boost that we can all use."
County administrator Douglas P. Stanley called the impending construction "a tremendous economic benefit to the county" that "creates jobs, increases the county's tax base, delivers needed energy and benefits Dominion customers by reducing reliance on power purchases from out of state."
Martha Bogle, superintendent of Shenandoah National Park, also praised the project as holding more environmental advantages than disadvantages for the park. Bogle said agreements reached by the National Park Service that involve closing a dirtier, older coal-fired power plant in West Virginia and a reduction in pollution credits will lower the amount of acid rain that has plagued the park's waterways.
"All the scientific modeling shows it will result in a net environmental benefit to Shenandoah National Park," Bogle said of the power plant.
Dan Genest, a spokesman for Dominion Virginia Power, predicted the construction phase of the project, expected to last three years, will lead to 2,700 jobs, 1,700 of them in Warren County. Genest said the power plant also will contribute $2 million to $4 million annually to Warren County in property taxes.
"Hopefully, this will turn out to be an economic boom for the area," Genest said.
After completion in 2014, the power plant is expected to create 100 permanent jobs, including 30 people needed to operate the plant, Genest said.
Job seekers can begin applying immediately, said Cathy Green, vice president of external affairs with Zachry Industrial Inc. of San Antonio Texas, one of two companies that have formed a joint venture to oversee hiring for the power plant. The other is Burns & McDonnell headquartered in Kansas City.
Green said job applicants should visit the website www.1800jobsusa.com for instructions on how to apply. Those looking to apply for jobs elsewhere can speak to an employment representative by calling 1-800-jobsusa, she said. Other information is available on the Warren County website.
Green said company representatives also are preparing to open a rented employment office in Warren County by March 1.
Green said the final approval for the project means the hiring process can begin immediately.
"The sooner, the better. We're very excited about that," she said, referring to the State Corporation Commission's decision.
The power plant will be located on Kelley Drive, north of Interstate 66 and east of U.S. 340-522.
Genest said the plant is being built to meet demands for electricity in Northern Virginia that are expected to grow "by leaps and bounds" through 2022.
Most of the growth is projected in areas east of Warren County from Fauquier County toward Washington. Most of Dominion Power's 2.3 million customers are concentrated in that area south toward Richmond and Virginia Beach, he said.
Genest said the company chose Warren County as the site of the plant because the Kelley Drive parcel had already been approved for a power station and nearby rail and road access makes it easier to haul the many pieces of equipment needed for construction.
Warren County gave the project a key boost last year when the Board of Supervisors agreed to provide up to $1 million a year for the sixth through the 10th years of the project to offset the cost of water and sewer services from Front Royal.
In a written statement, Stanley described the power plant proposal as receiving more scrutiny than any other project in his 17 years of working in county government.
"County leadership, including staff and elected officials, have not sacrificed the protection of the environment for tax dollars," he said.
The county has been working with Dominion Power for the last few months to finalize approval of the company's site plan through the Planning Department, review construction plans, and prepare for future building inspections, Stanley said.
The 1000 jobs are not permanent jobs. It hardly takes a hanfull of workers to run a power plant and these workers will be brought into the area. This area will not see any benefit of this power plant at all. This is what the area residents will get; polution, explosion hazzard and birth defects. This electricity will be shipped out and used elsewhere. This is a huge downside for the residents. The only upside will be with the politicians and regulators that lined their pockets with cash from Dominion Power. This is your Republican Party at work. Enjoy!!!
Dominion Virginia Power is spending $1.1 to construct this plant and "...the Board of Supervisors agreed to provide up to $1 million a year for the sixth through the 10th years of the project to offset the cost of water and sewer services from Front Royal."
What are the tax incentives for years one through the 5th years? All of a sudden the tax benefits to Warren County disappear into a room filled with smoke and mirrors. Somewhere, somehow, many pockets are jingling with newfound windfalls, including out-of-town contractors.
Maybe this will in fact have the effect of cancelling out all the usual Front Royal birth defects.
The reason why it would be an out of town contractor is that for a project of that size is no small task. There are only about 6 companies in the U.S. that can handle a project like this and most of those contractors do not have a headquarters or offices in towns of that size. The town will get a tax break even if energy is shipped out because someone will be paying the county for your energy. Just be thankful that it is not a foreign contractor where the U.S. would be losing even more money.
Dear "Young And Wise",
Thank you for answering questions I did not ask or responding to statements I did not make.
However, I'd like to respond to several of your statements.
You said:
" The town will get a tax break..."
Reply:
The gas fired power plant is being built on land under the governance and jurisdiction of Warren County. How do you figure the Town of Front Royal has jurisdiction and somehow can receive tax breaks? More to the point, what tax breaks? In your opinion, which state or federal government agency has the power to levy a tax on a town or county government and therefore can also create legislation to allow tax breaks?
You said:
"... someone will be paying the county for your energy."
Reply:
The phrase "your energy" must mean Dominion Virginia Power as it owns and operates the gas fired power plant and will sell the energy it produces. How do you figure someone will pay Warren County for energy produced and owned by Dominion Virginia Power?
You said:
" Just be thankful that it is not a foreign contractor where the U.S. would be losing even more money."
Reply:
A foreign contractor is not involved. How do you figure the U.S. is still loosing money?
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