RICHMOND, March 31 — Dominion Virginia Power’s plan to build a coal-burning power plant in southwest Virginia cleared a major hurdle Monday when it was approved by the State Corporation Commission, despite objections from environmentalists.

Dominion is pushing to build the $1.8 billion plant in Wise County, in Virginia’s coal country, as part of a multi-pronged strategy for meeting the state’s growing demand for electricity.

Dominion, which has 2.3 million customers in the state, said the plant would be “one of the cleanest” coal-fired facilities in the nation because it would have a sophisticated emissions-control system.

In its ruling, the commission said Dominion could build the plant and pass on the cost of construction to its ratepayers statewide. Company officials say there might be “nominal” increases in residents’ utility bills starting next year to offset the cost of construction of the plant.

The commission designated the plant as a “conventional coal facility” instead of one that is “carbon capture compatible,” which environmentalists say bolsters their argument that the plant would increase the emission of greenhouse gases that have been linked to global climate change.

“This ruling proves Dominion has absolutely no plan to capture its global warming pollution,” said Cale Jaffe, a lawyer with the Southern Environmental Law Center, part of a coalition of groups opposing the project.

The plant, which would be called the Virginia City Hybrid Energy Center, still must be approved by the Virginia Air Pollution Control Board. Dominion officials hope it will be operating by 2012.

“The Virginia City Hybrid Energy Center is a vital part of Dominion’s integrated strategy to ensure our customers’ needs are met now and well into the future,” said David B. Botkins, a Dominion spokesman.

Botkins said the 585-megawatt plant, which could power 146,000 homes, would “meet the rising demand for energy and help maintain price stability over the long term.”

Environmentalists are stepping up pressure to try to derail the project before the pollution board approves it.

Full Story: http://www.washingtonpost.com/wp-dyn/content/article/2008/03/31/AR2008033101172.html