The State Corporation Commission is reconsidering its approval of Dominion Energy Virginia’s 944-megawatt gas peaker plant, weeks after granting the utility permission to build it.

The Southern Environmental Law Center filed a motion alleging the commission erred in four areas: environmental justice, the cost of the plant compared with alternatives, the burden of proof on reliability, and the legal mechanism for cost recovery. On Dec. 16, the SCC granted the motion, suspending its earlier approval. 

The commission’s original order, issued Nov. 25, allowed Dominion to proceed despite the Virginia Clean Economy Act’s general ban on new fossil fuel generation. The SCC cited a surge in power demand from data centers as a reliability exception to the law. 

The Chesterfield Energy Reliability Center would be located in a majority-Black community that has experienced decades of air pollution from a former coal plant on the site. Residents and environmental groups say the new gas plant would continue disproportionate harm despite environmental justice provisions in the VCEA. 

Critics also allege Dominion circumvented the planning process by ordering the gas turbine before soliciting third-party proposals, and by claiming that an independent review had been conducted when it had not. Dominion has said the project is the only viable option to meet energy demand. 

The SELC’s motion argues the SCC erred on four points: 

• The commission did not adequately ensure the plant “does not have a disproportionate adverse impact on historically economically disadvantaged communities.” 

• Dominion did not prove the cost of the gas plant is reasonable compared with alternatives. 

• The company did not demonstrate that reliability could only be achieved with a fossil fuel plant. 

• The commission misapplied the law on cost recovery, allowing Dominion to charge ratepayers through a separate rider rather than including costs in base rates, even though the utility has not met its energy-efficiency targets. 

If the SCC agrees with any of the first three points, Dominion may need to revisit its plan, including possibly its location. The fourth point would affect how the company recoups costs from customers, potentially reducing profitability. 

On Dec. 29, the SCC set Jan. 23 as the deadline for Dominion to respond to the SELC’s motion. The commission is expected to schedule a new hearing afterward. The process could delay a final decision on the gas plant beyond this year’s legislative session. 

The writer is a lawyer and a volunteer with the Sierra Club.