Dominion seeks proposals to explore feasibility of a small nuclear reactor at North Anna

Legislation signed by Governor Glenn Youngkin earlier this year will make it easier for energy producers to recoup the costs of building a “small modular nuclear facility” that generates less than 500 megawatts.

Today, Youngkin traveled to Louisa County to be on hand as Dominion Energy Virginia announced they are seeking proposals from companies that develop small modular reactors (SMR) to determine if it would be cost-effective to build one at the company’s existing facility at North Anna. 

“As Virginia’s need for reliable and clean power grows, SMRs could play a pivotal role in an ‘all-of-the-above’ approach to our energy future,” said Dominion Energy president and CEO Robert Blue. “Along with offshore wind, solar and battery storage, SMRs have the potential to be an important part of Virginia’s growing clean energy mix.”

Blue is also a member of the University of Virginia Board of Visitors. 

According to a press release from Dominion, SMR technology can generate energy “with a significantly smaller footprint and lower upfront capital costs.” For many years, the company has explored building a third reactor at North Anna and received a permit from the Nuclear Regulatory Commission in June 2017. (see the details)

Youngkin was at today’s event to symbolically sign legislation that allows Dominion to petition the State Corporation Commission to adjust its rates to cover the costs of early development for an SMR. 

“The legislation contains cost caps limiting current SMR development cost recovery to no more than $1.40 per month for a typical residential customer,” reads a press release from Dominion Energy. “The company anticipates that its initial request will be substantially below that limit.”

SB454 initially passed the Senate 20 to 16 and an amended version passed the House of Delegates 52 to 44 with one abstention. Youngkin made recommendations to lower that cap from $1.75 to $1.40 per month. Those were agreed to in a 68 to 27 vote in favor with one abstention. 

The Youngkin administration argued that one reason to leave the Regional Greenhouse Gas Initiative was due to Dominion and other providers adjusting their rates to cover the cost of participating in auctions for the right to exceed emission caps. 

While much of the conversation about SMR technology has focused on building them in southwest Virginia, a fact-sheet provided at the announcement explains why one at North Anna makes sense to Dominion.

“Siting SMRs on an existing power station property, such as at North Anna, allows for interconnection to the grid and access to necessary and available workforce,” reads the fact-sheet.

In their information release, Dominion states that the issuance of the request for proposals does not mean this proposed new unit would be built, but such power generation would be consistent with their latest Integrated Resource Plan. (view the document) 

For more information on the legislation, take a look at Charlie Paullin’s February 14, 2024 story on the Virginia Mercury. 

In related news, Dominion Energy announced on Monday that its Virginia Electric Power subsidiary will purchase a 40,000 acre lease for wind energy from the company Avangrid. They’ll pay $3,000 per acre for a total of about $160 million. 

The project is still not approved by regulators but could generate 800 megawatts. 

“With electric demand in our Virginia territory projected to double in the next 13 years, Dominion Energy is securing access to power generation resources that ensure we continue to provide the reliable, affordable, and increasingly clean energy that powers our customers every day,” Blue said in a different press release. 

The project will be a counterpart to Dominion’s Coastal Virginia Offshore Wind (CVOW) project which is currently under construction. One remaining issue with that 2.6 gigawatt project is how it will connect to the shore. 

“The company is aware of the community concerns regarding the proposed landing site in Sandbridge, Va., and is committed to working closely with the community, the Commonwealth of Virginia, and the City of Virginia Beach as it considers this project,” reads that second press release. 

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