Wooing Virginia development projects for the kind of growth that generates scores of jobs and millions of dollars of new investments can sometimes mean millions of dollars of breaks on electric bills.
In Virginia, such projects received some $24 million worth of discounts on utility bills since Dominion Energy’s launch of an incentive program nine years ago, according to a Richmond Times-Dispatch analysis of State Corporation Commission filings.
The discounts come through Dominion Energy‘s Rider EDR-economic development rate program, which the SCC approved in 2015. EDR stands for economic development rate.
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The filings do not disclose the recipients, and Dominion said their names are confidential customer information.
The program “helps make Virginia competitive to attract businesses and helps generate economic development opportunities for the commonwealth, which benefits all residents through job creation and increased economic activity,” said Dominion spokesman Jeremy Slayton.
The discounts are available to large, nonresidential customers that have a peak demand of 500 kilowatts or more — basically what 400 homes would draw — and kick in when those customers add a load of at least an additional 1,000 kilowatts.
In addition, to qualify for the discounts, a firm would have to create a minimum of at least 70 jobs, with an additional seven jobs for every 100 kilowatts above the 1,000-kilowatt trigger.
Firms would also have to invest a minimum of $4 million on a project, with an additional $400,000 for every 100 kilowatts above the trigger.
The discounts expire after five years, SCC records show.
The firms receiving them can opt for 15% reductions over the five years or for phased-down reductions starting at 25% the first year and declining to 5% during the fifth year.
Major economic development projects can also get other breaks from the state and localities.
LEGO’s planned $1 billion plant in Chesterfield County, for instance, is eligible to receive $56 million in Major Employment and Investment Project performance grants.
A $6 million grant from the state’s Commonwealth Opportunity Fund will support the $400 million hydrogen cell plant that Topsøe Holding A/S plans, just down the road from LEGO.
Topsøe is also eligible for benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program and from the Virginia Talent Accelerator Program, which helps with hiring and training staff for new and expanding businesses.
Local governments also offer incentives, like the reduced rate of 40 cents per $100 of value for data center computers and related equipment that Henrico County offers to lure data centers. Many localities have worked on road, water and sewer access to help woo business.