Localities collect tax revenue on real estate, property and power-related assets including buildings and equipment, power stations, transmission lines, substations and other facilities that are owned and operated by Dominion within those jurisdictions.
2012 is the year Dominion put into operation its Virginia City Hybrid Energy Center, a $1.8 billion, 585-megawatt power generating facility, located just off U.S. Route 58-A across a ridge from downtown St. Paul in Wise County, at a site known as Virginia City.
Construction of the new coal-fired power station began in 2008 but Wise County’s tax haul would not significantly kick in until the plant became operational. For 2012, Dominion reports Wise County collected nearly $3 million in taxes from the utility, or $2,923,349, and the town of St. Paul collected $915,570, representing significant tax windfalls for both jurisdictions expected to grow as the power station only became operational well into 2012.
Dominion said Surry and Louisa counties, home to two of the company’s nuclear power stations, each received the single largest tax payments at around $12.8 million.
“Our tax payments have increased over the past several years as we have improved system reliability and met increasing customer demand for electricity by adding new power generation and transmission facilities,” said Dominion Chief Executive Officer Paul D. Koonce.
“We have a large economic impact on the state. These tax payments are vital to many Virginia communities.”
Tax payments in 2012 were about $10 million higher than in 2011, Dominion said. Payments to Virginia counties in 2012 totaled $105.1 million, cities $35.1 million and towns $1.6 million.
In addition to Surry and Louisa counties, among the largest tax payments Dominion made in 2012 were to $11.3 million to Fairfax County, $9.6 million to Prince William County, $8.5 million to Chesterfield County, $7.2 million to Chesapeake, and $6 million to Richmond.
Typically the largest tax payments are to localities where the utility’s electricity generating stations, such as Dominion’s new facility in Wise County, are sited.