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Regulators pause approval of Dominion gas plant

(The Center Square) – Virginia regulators agreed this week to take a second look at their approval of Dominion Energy’s proposed Chesterfield gas plant, temporarily pausing the decision while the project undergoes further review.

In an order issued Tuesday, the Virginia State Corporation Commission granted reconsideration and suspended a Nov. 25 final order tied to the project.

Dominion Energy previously received approval to construct the Chesterfield Energy Reliability Center, a 944-megawatt natural gas plant planned for Chesterfield County. The approval included permission for the utility to recover project costs through a rate adjustment clause known as Rider CERC, which the commission authorized to collect about $35.7 million from customers during the 2026 rate year.

The petition filed with the commission says the approval did not fully comply with requirements under Virginia’s Clean Economy Act and Environmental Justice Act. It also questions whether Dominion demonstrated that the project is necessary to address future electric reliability needs and whether the costs associated with the plant are reasonable for customers.

In granting reconsideration, the commission said it is retaining jurisdiction over the case and suspending execution of its Nov. 25 final order while it considers the petition.

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Under Virginia law, the State Corporation Commission is responsible for determining whether large energy projects are needed to serve the public before granting approval and allowing utilities to recover costs from ratepayers.

The reconsideration request was filed by the Southern Environmental Law Center on behalf of Appalachian Voices, the Chesterfield NAACP and Mothers Out Front.

In the petition, the groups say the commission did not fully analyze potential health impacts tied to the projected air pollution and relied on limited evidence to justify building new fossil fuel infrastructure. The filing also challenges the commission’s decision to approve cost recovery, citing claims that Dominion has not met certainenergy savings requirements under state law.

“We appreciate the commission’s willingness to take another look at its approval of this unnecessary, dirty, and expensive gas plant,” said Grayson Holmes, a senior attorney with the Southern Environmental Law Center, in a statement following the reconsideration decision.

The commission’s reconsideration order does not set a timeline for when a final decision will be issued. The Nov. 25 order remains suspended while regulators review the petition.

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