SCC analysis - Power Plant will eliminate 1,474 jobs

By: joshtulkin
Published On: 3/10/2008 1:41:21 PM

According to recently uncovered testimony  by staff at the State Corporation Commission, the Wise County Power Plant could actually eliminate 1,474 Virginia jobs and have a significant negative economic impact on the rest of the state.

"This implies that for each dollar of revenue requirement collected through Rider S will have a -$1.36 impact on economic activity elsewhere in the state economic activity elsewhere in the state.  The analysis also reveals a negative impact on employment of -1476 jobs."

Because of the huge profit Dominion will make from this plant (12.12%), money will be removed from the Virginia economy, instead being transferred to Dominion's shareholders, who received almost 40 cents per share dividend last quarter.  Quite a good deal for the shareholders.  We pay for our electricity, lose jobs, and they reap the profits.  

Last year Governor Kaine dispatched Secretary of Commerce and Trade Patrick Gottschalk to testify before teh SCC, urging them to support the plant and emphasizing that the plant "has the full support of myself and the Governor".   Will this new evidence change his mind?

Despite an agreement with the Attorney General and the SCC staff that the plant will NOT be carbon capture compatible, Dominion struck a deal to maintain the higher 12.12% profit on the $1.8 billion power plant.

Comments



Not to mention the Wise Co. Plant will use mountaintop removal coal (faithfull - 3/10/2008 2:02:36 PM)
Which is used specifically because it uses fewer workers.



Can this be far behind? (TheGreenMiles - 3/10/2008 2:15:13 PM)
West Virginia just approved a massive coal plant, then got hit with this:
Power Companies Shock PSC: $156 Million Rate Hike Request is Largest Ever By West Virginia Utilities

The rate increase request filed Friday by Appalachian Power and Wheeling Power is the largest ever by a West Virginia utility, a state Public Service Commission official said Monday.

"It's pretty shocking," said Byron Harris, head of the PSC's Consumer Advocate Division. "I expected them to file some type of increase, but certainly not of this magnitude."

The two power companies, both subsidiaries of American Electric Power, asked Friday for a 17 percent rate increase, which would raise about $156 million -- more than any utility request ever made of the PSC, Harris said.

Hat tip - Gristmill


Virginia's rate-hike could be worse (joshtulkin - 3/10/2008 5:30:35 PM)
Its hard to sift through the stats at the SCC (and they are not likely to come clean like WV did), but our rate hike is likely to be worse because of Dominion's 12.12% rate-of-return.  And that's presuming $0.00 cost of controlling carbon.