March 18, 2009 Q&A

Helen, Dendron
How many tons of fly ash do you anticipate producing per year from this plant?

ODEC will market fly ash and other byproducts to potential buyers and the remainder will be placed in a lined, permitted landfill. ODEC anticipates as much as 260,000 tons* will be placed in such a landfill for each unit. This includes approximately 29,000 tons of reacted lime injected for SO3 control that will be collected in the bag house with the flyash.

*Note: This amount assumes a "worst-case scenario" in which all fly ash will be sent to the landfill and cannot be marketed or sold for beneficial use. The total amount is based on an ash production rate of 29.7 tons per hour per unit, which is based on the design fuel average ash content of 11.14 percent.

I am reading that Dominion has a 330-acre landfill, which is two times larger than proposed site in Surry. What size landfill are you proposing?

ODEC will market the fly ash and other byproducts to potential buyers and the remainder will be placed in a lined, permitted landfill. ODEC has designated 176.5 acres for landfill.

Rowlanda, Dendron
How will the fly ash be treated? An article in Scientific American states there’s more radioactive material in fly ash than is given off by nuclear power plants.

In that same article, Dana Christensen, associate lab director for energy and engineering at the Oak Ridge National Laboratory (ORNL), said that "health risks from radiation in coal by-products are low. ‘Other risks like being hit by lightning are three or four times greater than radiation-induced health effects from coal plants.’"

In addition, the article states that ORNL’s J.P. McBride estimated in a 1978 paper for Science that "individuals living near coal-fired installations are exposed to a maximum of 1.9 millirems of fly ash radiation yearly. To put these numbers in perspective, the average person encounters 360 millirems of annual 'background radiation' from natural and man-made sources, including substances in Earth's crust, cosmic rays, residue from nuclear tests and smoke detectors."

Further, the article also refers to the October 1997 U.S. Geological Survey (USGS) fact sheet entitled Radioactive Elements in Coal and Fly Ash: Abundance, Forms and Environmental Significance, which states "Radioactive elements in coal and fly ash should not be sources of alarm." Stored fly ash will ultimately be in a solid state (eliminating the possibility of a TVA-like disaster), but must first be dampened and mixed with bottom ash (and possibly gypsum waste from the SO2 removal process) to produce a stable solid. Once leftover fly ash is solidified, it will be housed in a lined landfill permitted by the DEQ, a regulatory agency responsible for protecting the environment.

Florida is making builders or manufacturers rip out and replace wallboard that contains fly ash. What process is planned for your company?

If a company purchases gypsum from the Cypress Creek Power Station to use in wallboard, it will be the wallboard company’s responsibility to manufacture the wallboard to meet acceptable health and safety standards.

Sandra, Wakefield
What about the fly ash? What will you do with it? I understand with the technology of today, you’re only able to release 20 percent. Is this so?

It’s too early to know how much fly ash can be recycled, as ODEC plans to market as much fly ash as possible to reduce the amount stored. Stored fly ash will ultimately be in a solid state (eliminating the possibility of a TVA-like disaster). The stable solid will be housed in a lined landfill permitted by the DEQ, a regulatory agency responsible for protecting the environment. Fly ash will not be stored as a liquid.

Charlotte, Williamsburg; Mike, Charlottesville; Lindsey, Richmond
What will the CO2 emissions of the plant be?

CO2 emissions will be approximately 14.6 million tons per year based on the average carbon content for the design fuel.

Jessica, Hampton (Downriver)
Given that President Obama wants a cap on our carbon emission and the price of carbon could increase, is this plant still cost-effective?

ODEC factored the cost of carbon into its evaluation of generation technologies. Our evaluation continues to show that even with a carbon tax or cap and trade program for CO2, a supercritical pulverized coal/biomass power station is the most economical (and environmentally balanced) generation choice for meeting ODEC consumer-member needs.

How does smart grid technology and energy efficiency factor in?

ODEC has been implementing energy response programs for decades. Our consumer-members have reduced demand by approximately 200 megawatts (MW), delaying the need to build additional base load generation until now. Demand response, renewable energy and energy efficiency continue to be among ODEC’s main areas of focus.

Smart grid technologies are being evaluated by ODEC’s member distribution cooperatives. Although these technologies will help reduce peak demands and allow consumers the opportunity to use power at more economical, off-peak times, they will not reduce demand enough to avoid the need for additional base load generation.

Leah, Elberon
Odor/particles/coal – is the neighboring area able to open windows?

There are no odors associated with a supercritical pulverized coal/biomass power station. The air pollution control technologies combined with the conditions in the air permit will control the particulate matter so there will be no visible or aromatic particulate matter in the air, nor will there be unsightly residue.

Neighboring individuals will be able to open their windows without problems of odors or particulate residues stemming from this facility.

Mike, Charlottesville
Does the proposed facility go above and beyond what the law requires in regards to air pollution? How? Have you done a health study on the probable effects of particulate matter to local residents asthma and respiratory disease levels?

DEQ is responsible for ensuring ODEC does not exceed National Ambient Air Quality Standards, which are standards that protect human health and the environment. ODEC must meet or emit less than what is in the air permit. ODEC has not conducted health studies at this point.

The review process for an air quality permit will take approximately one year.

Do you think there is a way to displace the need for the plant?

No. ODEC has a responsibility to provide its member cooperatives with reliable and affordable electric power. ODEC has conducted a resource planning study and continues to evaluate the best way to meet its obligation to provide this power. The Cypress Creek Power Station is the most economical means of providing this power in a safe, reliable and affordable manner.

People are using more energy per household due to the fact that we are becoming an increasingly electronics-driven and –using society, both in our personal lives and professionally. Additionally, data centers that serve as the backbone for Internet communication, phone service and electronic record keeping are increasingly being located in ODEC’s service area. These centers require eight- to 120-MW loads.

In addition to increased energy use per household and business, Gov. Kaine projects the population to grow by three million people in the upcoming years. We simply cannot save our way out of mounting energy demand caused by that much growth. Further, the base load demand, particularly on the existing scale, cannot be met by renewable energy sources, especially in Virginia. Virginia will be approximately 4,000 MW short in the next decade and is already second only to California when it comes to importing electricity.

Robert, Williamsburg
This plant is projected to emit up to 118 lbs. of mercury into the air:
1) How far can the stack emissions travel?
2) How many people live or work in that radius?
3) How could they be adversely affected?

The distance emissions travel can vary greatly and will be determined in the air dispersion model. This modeling is anticipated to be completed at the end of June or in early July.

The air permit will contain mercury limits that fall within DEQ guidelines that are designed to protect human health and the environment. The emissions of mercury lack sufficient concentration to adversely affect someone’s health from inhalation. Emissions will be modeled to determine the range of mercury deposition and the DEQ, as well as other agencies will be reviewing the modeling results.

What are the weather patterns in Surry?

Until the air dispersion model discussed above is conducted, we won’t have definitive information we can provide.

Jim, Hopewell
How will the other chemicals, the hazardous air pollutants, affect the community?

ODEC will provide this information upon request. In addition, the DEQ has ODEC’s application, which contains this information, on its Web site.

Kelly, Williamsburg/York Conty
As a waterman, I am concerned about dead zones and mercury (Hg) bio-accumulation that results in fish consumption advisories and dead water. If the NOX, SOX and mercury from the plant make this worse, who is going to indemnify (compensate) the seafood industry? Who will pay for mercury-related autism?

Virginia’s mercury levels are being reduced. The DEQ’s "Virginia Mercury Study" states, "…74 percent of the annual deposition in Virginia for the base year can be attributed to global background and 26 percent of the deposition occurring in Virginia is from emission sources…For example, 3 percent of the mercury deposition occurring within Virginia can be attributed to EGUs located within Virginia." (EGU means Electric Generating Units.)

The Clean Air Interstate Rule (CAIR) requires older power stations to install pollution control equipment for the control of NOx and SO2. This pollution control equipment will also reduce the amount of mercury entering Virginia. A large source of mercury has been reduced by removing the mercury switches in automobiles before they are recycled.

The federal government plans to develop a mercury rule that will replace the vacated Clean Air Mercury Rule. Again, the DEQ will only issue an air permit that protects human health and the environment.

Regarding indemnity, that is an issue that is better put to legislative and judicial branches of government than to us.

Sandy, Wakefield
Water supply? Where will the water come from? How will it get to the site?

The water source for the generation of electricity will come from the James River via a pipeline. The pipeline route is presently being studied and has not yet been determined at this time.

Patty, Elberon
Will the water used for the cooling tower affect our water table in the area?

The cooling water source for the generation of electricity will come from and be returned to the James River; therefore, there will be no impact on the water table.

Jeff
How will ODEC keep mercury from becoming more of a problem in this (Blackwater River) water shed?

Virginia’s mercury levels are being reduced. The DEQ’s "Virginia Mercury Study" states, "…74 percent of the annual deposition in Virginia for the base year can be attributed to global background and 26 percent of the deposition occurring in Virginia is from emission sources…For example, 3 percent of the mercury deposition occurring within Virginia can be attributed to EGUs located within Virginia." (EGU means Electric Generating Units.)

The Clean Air Interstate Rule (CAIR) requires older power stations to install pollution control equipment for the control of NOx and SO2. This pollution control equipment will also reduce the amount of mercury entering Virginia. A large source of mercury has been reduced by removing the mercury switches in automobiles before they are recycled.

The federal government plans to develop a mercury rule that will replace the vacated Clean Air Mercury Rule. Again, the DEQ will only issue an air permit that protects human health and the environment.

What effect will the facility have on property values, the environment, public health and county revenue?

ODEC does not anticipate any negative impact on property values. In fact, values of property located near other power stations, including Clover Power Station, have increased. The environment and health will be protected through the latest pollution controls and environmental permits. There will be a significant positive impact on the town and county revenue.

Leah, Elberon
Impact on land value within the pollutant, noise, light, smell and view area?

ODEC does not anticipate any negative impact on property values. In fact, values of property located near other power stations, including Clover Power Station, have increased.

There will be no odor emitted from the power station. The facility’s lighting will be designed to reduce off-site impact and will only be used for safety and security areas. The property will be screened using trees and shrubs where possible. Noise levels from noise sources such as equipment and operations will be modeled to determine the noise levels at the property line. If necessary, structures and/or equipment will be constructed or installed to limit the amount of noise.

Patty, Elberon
Will water tower/cooling tower be visible from Sexton Road?

The cooling towers are not tall structures (53 feet) and should not be visible from off-site locations. On cold, humid days the condensed water vapor (white cloud) will be visible from off-site.

Kelly, Williamsburg/York County
Have you calculated the medical costs that could result from the airborne emissions from the facility? Will ODEC pay for them or must harmed parties sue?

The DEQ will only issue an air permit that protects human health and the environment.

Lindsey, Richmond
How many jobs will be created and sustained in Dendron?

There will be more than 2,000 jobs during the peak construction period. Once operational, the facility will require approximately 200 full-time employees. Of those jobs, 160 may be filled by qualified persons from the local community. Approximately 40 positions will require specialized skills consistent with professional employees in the electric production industry.

Examples of some of the jobs are mechanics, maintenance, office staff, electricians, equipment operators, etc. There will also be employment from businesses that support the power station, such as delivery of biomass, chemicals and other materials.

Do you have a plan to purchase coal from underground mines to avoid contributing to the loss of jobs and destruction of the land?

It is too early in the process to identify coal sources for the power station

Jim, James City County
Have you considered the most obvious alternate fuel to coal? Dendron was a logging area. The availability of biomass—local and within hauling distance is enormous.

ODEC has and continues to investigate alternative fuel sources. The proposed power station will be capable of burning up to two percent biomass. ODEC has evaluated warm season grass and algae as other alternative fuels that may supplement the coal. Unfortunately, there are not enough alternative fuel sources to generate the amount of power needed in an economically feasible manner.

Jim, Toano
Do you have information comparing production costs per kW-hr for coal, nuclear, water, solar, wind, biomass, etc. averaged out over 20 plus years (or whatever basis is appropriate to give a fair cost comparison)?

Yes, but this information is confidential and is used in determining the best means for meeting ODEC’s consumer-members’ needs.

Jessica, Hampton (Downriver)
Have your calculations on how much electricity ODEC needs taken the recession into account? People aren’t building anymore and we’re using energy efficiency – do we still need all this?

Yes, ODEC calculates the electricity demand. Our power projections include long-term views and take into account recessions. We continue to agree with what the PJM Interconnect has stated – the state will be approximately 4,000 MW short in the next decade.

R.M., Wakefield
Why not build a plant across James River where the population needs more electricity?

ODEC performed a detailed site selection study and determined that Dendron is the best location for the power station. This location is extremely conducive to transmitting energy to major population centers such as the Hampton, Norfolk, Williamsburg and Virginia Beach areas.

Salle, Suffolk
I was told that Dominion was investing up to 50 percent of the capital to be used in this project. Is that true?

No. Dominion Virginia Power has no involvement with this project.

Jessica
Is there a guarantee that you will shut down an old plant if you get this one? Which one? Are you willing to put that in writing?

No. The rules of a competitive wholesale market ensure that units with higher costs are not dispatched unless there is a transmission constraint. The transmission system in the area will be upgraded when the plant comes on line so there will be no constraints. Since Cypress Creek will be the most efficient coal units in PJM, it can bid lower than any other coal units. The market rules are in writing and can be accessed on the PJM Web site.

Fenton, Wakefield
What will be the routing of transmission lines, rail and supply water?

The routing studies of the rail and water pipeline are being evaluated. There will be an opportunity to comment on these routes once they have been drafted for comment. The transmission line will remain on-site and connect to the existing transmission line.

Sandy, Wakefield
How will the coal get to the sites? Where will the spur be located?

The routing studies of the rail and water pipeline are being evaluated. There will be opportunity to comment on these routes once they have been drafted for comment. The transmission line will remain on-site and connect to an existing transmission line.

Robert, Williamsburg
Any guarantee this facility will be profitable as the regulations are changing?

ODEC has evaluated the expected change in regulations and the Cypress Creek Power Station makes the most sense to meet ODEC consumer-member needs.