Legislation that passed both the Virginia House of Delegates and Senate earlier in February, along with a commitment by the state's largest electric utility to eliminate its carbon emissions, could force 20,000 MW or more of coal-, gas- and oil-fired generating capacity to shut down.

House Bill 1526, the Virginia Clean Economy Act, passed the House of Delegates on Feb. 11 in a 54-45 vote, and the counterpart, Senate Bill 851, passed the upper chamber by a 21-19 party-line vote on the same day. As of Feb. 24, the House bill was before the Senate Committee on Privileges and Elections, and the Senate bill was at the House Committee on Labor and Commerce. If enacted, the bill would replace Virginia's voluntary renewable goal established in 2007 with a mandatory renewable portfolio standard that begins in 2021. The standard requires the state's largest utility, Dominion Energy Inc. subsidiary Virginia Electric and Power Co. which does business as Dominion Energy Virginia, to source all its power from renewable resources by 2045. Appalachian Power Co., a subsidiary of American Electric Power Co. Inc., has to do the same by 2050.

According to S&P Global Market Intelligence data, six coal-fired power plants are operating in Virginia, with a total combined output of 2,927 MW. Dominion owns two and co-owns a third, the 881-MW Clover plant, with Old Dominion Electric Cooperative.

The remaining three coal plants are small, and one, the 105-MW Spruance Genco unit owned by asset manager Ares Owners Holdings LP, is to be closed later this year.

The bill requires Dominion to shut coal facilities and large oil units by 2024, but gives more time to coal units jointly owned with electric cooperatives and select plants that co-fire biomass. For example, the bill requires Dominion to close the 624-MW Virginia City Hybrid Energy Center, a coal facility which began operating in 2012 and which also burns wood, by 2030 if it cannot demonstrate an 83% reduction in carbon emissions. The Clover plant, which began operating in 1995, would also have more time before having to close. By 2045, however, both Dominion and Appalachian Power would have to shut all carbon-emitting plants. They can petition the Virginia State Corporation Commission for an exemption if a shutdown would raise reliability or security concerns.

Though the legislation targets investor-owned utilities, the combined efforts of the bill and an executive order issued by Gov. Ralph Northam last year to procure 100% renewable power by 2050 suggests all fossil fuel plants in the commonwealth could be impacted. Dominion, as it highlighted in its fourth-quarter 2019 earnings presentation, has been reducing its reliance on coal-fired power plants for more than a decade, with coal's share of the company's generation declining from 52% in 2005 to 12% last year.

During its earnings call on Feb. 11, Dominion pledged to achieve net-zero carbon emissions from its electric and gas pipeline operations across 18 states by 2050.

Last year, Dominion committed to shut more than 2,000 MW of steam facilities burning fossil fuels that it had previously idled. Among them are the 805-MW Possum Point oil-fired unit 5, due to be closed in 2021.

According to S&P Global Market Intelligence data, in 2018 carbon-emitting plants that burn coal, gas and oil accounted for about 69% of Virginia's operating capacity and 59% the net generation produced.

As Dominion has been reducing its reliance on coal-fired resources, it has been bulking up on gas. Since 2014 it has added three large gas plants: the 1,773-MW Greensville Power Station, the 1,472-MW Warren County Power Station, and the 1,466-MW Brunswick County Power Station. It is also pursuing offshore wind resources.

Appalachian mines supply Va. coal plants

Virginia's six operating coal plants received 2.3 million tons of coal in 2019 from mines in Kentucky, Pennsylvania, Virginia and West Virginia. The Virginia City Hybrid plant was the largest single consumer, using more than 724,000 tons in 2019 through November, almost all of which came from Savage Services Corp.'s Savage Blending Terminal in Wise County, Va.

The Clover plant used about 657,000 tons through November, according to S&P Global Market Intelligence data, and its largest single source was the P-7 Pigeon Creek mine in Wise County, Va.

The Chesterfield plant used more than 514,000 tons in the first 11 months of 2019. Consol Energy Inc.'s Bailey mine in Pennsylvania was a top supplier to Chesterfield plant, delivering 163,000 tons. Private coal company Lexington Coal Holdings Inc's Fork Creek Prep Plant and Feats Loadout, both in West Virginia, together supplied 175,000 tons to Chesterfield.