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Page 4 · column 2 of 6 · from the scan, no model involved

plant’s estimated costs rather than the higher costs of plants using other fuels. It would also take away some of the cogenerators’ business. So when Virginia Power went before the State Corporation Commission for permission to build the new plant, cogenerators flocked to Richmond to oppose the obvious threat to their competitive position.
Applied Energy Services, an Arlington-based cogeneration firm which has tried unsuccessfully to get contracts with Virginia Power, hauled in its analysts to dispute the utility’s natural gas price predictions. The predictions were too low, they said, making gas-fired plants look cheaper than coal-fired plants, which AES operates. AES argued that Virginia Power should be required to assume that coal plants are less expensive than gas plants when it plans and negotiates to buy power.
Fairfax County and Newport News complained as well. Both plan to generate electricity from garbage. However, Fairfax County recently agreed to sell electricity to Virginia Power at prices based on Chesterfield 7 costs.
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