Old Dominion Electric seeks bids for intermediate, baseload power

Virginia-based Old Dominion Electric Cooperative (ODEC) on June 1 issued a Request for Proposals (RFP) for long-term intermediate and base load generation resources or firm power sales.

Responding parties must be able to provide at least 100 MW of dispatchable power for a commercial start date between June 1, 2015, and June 1, 2018. Power purchase agreement terms will be a minimum of 10 years and up to 30 years in length. The proposal deadline is July 16.

ODEC’s service territory includes portions of Virginia, Maryland and Delaware, and preference will be given to those able to deliver to these areas. All proposals must originate within the PJM power pool or from an adjacent area or regional transmission organization with firm transmission delivery into PJM.

“With demand for electricity in our service area projected to increase, we are working to ensure an adequate supply of reliable and affordable energy for more than one million mid-Atlantic residents who depend on ODEC’s member cooperatives for their electric service,” said ODEC Senior Vice President and COO Lisa Johnson.

While this RFP is for dispatchable power, which excludes some forms of renewable resources, as a member-owner of the National Renewables Cooperative Organization, ODEC said it recently added long-term contracts for both wind and landfill gas sourced generation to its power supply mix. It also facilitates successful energy efficiency and demand response initiatives by its member cooperatives, including discounts on CFL light bulbs and free on-line home energy audit tools.

“We will continue to assist our member cooperatives and their consumers with efforts to increase energy efficiency and promote smart energy consumption, but these measures will only partially address our projected power needs over the next few decades,” said Johnson.

ODEC will hold a pre-bid meeting at its offices in Glen Allen, Va., on June 7.

ODEC is a generation-and-transmission cooperative that provides wholesale power to 11 member electric distribution cooperatives in Virginia, Maryland and Delaware. ODEC and its member systems are not-for-profit electric cooperatives that are owned by the consumer-members they serve.

ODEC currently owns 11.6% of the North Anna nuclear plant in Louisa County, Va., and 50% of the Clover coal plant in Halifax County, Va. The cooperative also owns and operates generation facilities in Louisa and Fauquier counties in Virginia and has a 50% ownership of a generation facility in Cecil County, Md.

ODEC has also been pursuing development of a major coal-fired power project after in 2011 dropping its planned participation in the North Anna 3 nuclear project. ODEC said recently it’s taking a go-slow approach on the coal project until it gets a clearer picture of regulatory requirements for a new coal plant.

“We are continuing to separately evaluate the possibility of constructing a new baseload generation facility,” said ODEC’s March 16 annual Form 10-K report. “In 2010, we purchased two tracts of land in Virginia for potential development; one tract is in the town of Dendron in Surry County and the other is in Sussex County. We received the necessary zoning approvals for both tracts for siting of a power plant and approval to proceed with the attainment of required air and other environmental permits. Several residents of Surry County filed a Complaint for Declaratory and Injunctive Relief with the Surry County Circuit Court, requesting that the court void the zoning approvals granted based on the residents’ allegation of inadequate notice of a public hearing. During 2011, the Surry County Circuit Court voided the zoning approvals. We repeated the application process and on March 5, 2012, we received the necessary zoning approvals for the tract located in Surry County.”

The Cypress Creek project that Old Dominion is currently pursuing at this site would be coal-fired, though the Form 10-K noted: “We have not selected the technology, the final site or determined the size of any facility that may be built. We have not made final commitments to proceed with the construction of a facility.” Preliminary plans for Cypress Creek call for one or two coal- and biomass-fired generators capable of producing 750 MW to 1,500 MW.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.