The Bulletin

Dominion asks for state approval of plans to extend life of nuclear plants beyond 2050 

By: - October 13, 2021 12:02 am

Dominion Energy’s North Anna Nuclear Power Station in Louisa County. (Ned Oliver/Virginia Mercury)

Dominion Energy is asking Virginia regulators to approve its plans to extend the federal licenses of its Surry and North Anna nuclear plants, as well as an estimated $3.9 billion in costs to keep the workhorse facilities running past 2050. 

Nuclear energy currently produces about a third of the electricity used by Dominion’s Virginia customers and is set to become even more critical as a source of baseload power as Virginia transitions away from fossil fuels under the Virginia Clean Economy Act. 

The nuclear units are responsible for 90 percent of Dominion’s carbon-free generation in Virginia, said Mark Sartrain, Dominion’s vice president of nuclear engineering and fleet support, in testimony to the Virginia State Corporation Commission last week. 

“As the company transitions away from certain fossil-fuel generating technologies to a more renewable portfolio, an underlying assumption of the company’s ability to comply with recent policy goals and mandates is that the nuclear generating units will continue to reliably serve customers well into the future,” Sartrain wrote. “The path to carbon-free generation depends on the continued service of the company’s nuclear fleet.” 

Under the Virginia Clean Economy Act and other 2020 legislation authorizing the state’s participation in the Regional Greenhouse Gas Initiative, a carbon cap-and-trade market, Virginia’s electric utilities must source all of their non-nuclear energy from renewables by 2050. 

Federal regulators signed off on license extensions for the Surry units in May and are still reviewing North Anna’s extension applications, with a final decision expected in the second quarter of 2022. 

If the NRC grants North Anna’s extension, it will leave all four of the state’s nuclear units with an authorized lifespan of 80 years. 

But while Dominion needs the federal blessing to continue running the nuclear plants beyond the 2030s, it also must get state regulatory approval to recover the costs of extending the facilities’ lives. 

The company’s Oct. 5 application to the State Corporation Commission asks the commissioners to determine that “it is reasonable and prudent for the company to pursue the nuclear license extensions and related projects” and to allow the company to impose a rider on customer bills to pay for $1.2 billion of the overall costs through 2024. 

This rider would increase the typical residential customer’s monthly bill by about $2.11. 

Ultimately, the upgrades are projected to cost $3.9 billion, excluding financing costs. 

While Sartrain says in his testimony that “units such as those at Surry and North Anna were originally designed to operate longer than 40 years,” Dominion has identified 33 capital upgrade projects that the utility says “are essential to reduce risk and ensure the units are operated in a safe and reliable manner” through the 80-year horizon. 

Dominion says the investments will save customers a projected $7.6 billion by allowing the utility to avoid investing in additional renewables or purchasing renewable energy credits on the market in order to meet state clean energy mandates. 

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Sarah Vogelsong
Sarah Vogelsong

Sarah is the Mercury's environment and energy reporter, covering everything from utility regulation to sea level rise. Originally from McLean, she has spent over a decade in journalism and academic publishing and previously worked as a staff reporter for Chesapeake Bay Journal, the Progress-Index and the Caroline Progress. She is the recipient of a first place award for explanatory reporting from the Society of Environmental Journalists and has twice been honored by the Virginia Press Association as "Best in Show" for online writing. She was chosen for the 2020 cohort of the Columbia Energy Journalism Initiative and is a graduate of the College of William and Mary. Contact her at [email protected]

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