Published: January 21, 2019 |

Gov. Ralph Northam backs legislation that would require Dominion Energy to dig up coal ash at the Chesterfield Power Station.
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Legislation that would require the excavation of coal ash stored in Dominion Energy ponds across the state moved ahead amid lingering questions over how much it could cost.

The bill cleared the Senate committee that handles conservation and natural resources in a 9-5 vote Thursday. It will next face another hurdle at the Senate Finance Committee, which has asked to also take up the bill because the costs are likely to be passed on to Dominion customers across the state.

Backed by Gov. Ralph Northam and introduced by state Sen. Scott Surovell, D-Fairfax, the bill would require Dominion to dig up its 27 million cubic yards of coal ash, recycle as much of it as possible and haul the rest to modern landfills. Coal ash is the toxic byproduct of burning coal that contains heavy metals including arsenic and lead.

“The reality of coal ash is that we use it to make products every day,” Surovell told the committee Thursday. “We have this thing sitting in our state that is polluting groundwater, and we can use it to make good Virginia products, create some jobs and clean up the environment while we’re at it.”

To minimize truck traffic in the neighborhoods surrounding the ponds, the bill would also require that Dominion predominantly use rail to transport the coal ash. The utility has said opting for rail instead of trucking would drive up the cost beyond its rough price tag of $5.6 billion.

Bill Murray, Dominion’s vice president of state and public policy, said the utility has not modeled the cost of rail in its projections. Murray added that, “to the extent that you mandate anything, whether it’s rail or recycling, you tend to make it more expensive.”

Ratepayers bear the burden of the cost, along with any return on investment and financing costs claimed by Dominion. How much exactly the utility’s 2.5 million ratepayers stand to pay remains unclear, but back-of-the-envelope estimates from the State Corporation Commission suggest it could add up to $800 for the average household spread over 20 years. That’s about $3 extra on every monthly bill.

Sen. Chap Petersen, D-Fairfax City, supported the bill but said he wants a clearer picture of the finances involved and the burden on ratepayers.

“Before we adopt this policy, I think it’s fair to ask, who’s going to pay for it?” Petersen said.

Representatives from a slew of environmental groups, however, spoke in favor of the legislation, saying that the cost of the project pales in comparison to the potential harm to health and the environment that could result from the ponds. People representing a dozen entities spoke in favor of the bill.

The committee declined to take up three other bills related to the disposal of Dominion’s coal ash, referring them to the Senate Commerce and Labor Committee because they include provisions to address how Dominion can recover the cost of the project from ratepayers.

One bill, also introduced by Surovell, would spread the amount of time over which Dominion can recover costs from ratepayers to 25 years. It would also keep Dominion from claiming a return on investment on the project.

The two other bills, introduced by Sens. Frank Wagner, R-Virginia Beach, and Amanda Chase, R-Chesterfield, would allow Dominion to recover all costs related to the project, including a return. Chase’s bill calls for a 20-year recovery period.

Source: Richmond Times- Dispatch

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