December 5, 2007
RICHMOND, Va. – Dominion (NYSE: D), one of the nation’s largest producers of energy, announced Wednesday that it has agreed to purchase a power station development project in central Virginia from Tenaska, one of the nation’s largest independent power producers. The station will generate about 600 megawatts of electricity when completed.
The 35-acre project is part of a 665-acre parcel in Buckingham County and already has air and water permits for a combined-cycle, natural gas-fired power station. Dominion plans to build a 2-on-1 unit, in which two gas turbines generate electricity and exhaust heat produces steam to generate additional electricity.
The development project is located about 1.5 miles southeast of New Canton, near Route 670 in Buckingham County and across the James River from Dominion’s existing coal-fired Bremo Power Station. The purchase price is confidential.
"Our Virginia customers are projected to need at least 4,000 megawatts of additional electric capacity during the next decade, even after taking conservation efforts into account," said Thomas F. Farrell II, chairman, president and chief executive officer. "To meet this demand, this power station will be a component of a balanced mix, along with other new generation and new technologies."
David Fiorelli, president and CEO, Tenaska Business Development Group, said:
"Re-regulation of the Virginia electric utility industry and a desire by Dominion and the state of Virginia to have sufficient in-state generation to meet the growing Virginia load makes Dominion the logical owner of this project. Tenaska continues to believe the PJM market is an attractive market in which to construct and own new generation and is actively developing other sites in PJM."
"We are pleased that the purchase is being made by a well-respected Virginia company that intends to develop the site, building upon the support of the citizens of Buckingham County," Fiorelli added.
Regulatory approvals are required before construction can begin. The project is expected to generate 300 construction jobs. The station will employ 20 people full-time once it is built.
Dominion is one of the nation's largest producers and transporters of energy, with a portfolio of approximately 26,500 megawatts of generation, 7,800 miles of natural gas transmission pipeline and 1 trillion cubic feet equivalent (Tcfe) of proved natural gas and oil reserves. Dominion also owns and operates the nation's largest underground natural gas storage system with about 960 billion cubic feet of storage capacity and serves retail energy customers in 11 states. For more information about Dominion, visit the company's Web site at http://www.dom.com.
Tenaska is an energy company, based in Omaha, Nebraska, that develops, constructs, owns and operates non-utility generation and cogeneration plants. The privately held company also markets natural gas and electric power and provides risk management services. Tenaska also is involved in asset acquisition, fuel supply, gas transportation systems, and electric transmission development. Tenaska has developed about 9,000 megawatts of electric generating capacity across the United States. Its affiliates own, operate and manage eight power plants in six states totaling about 7,400 megawatts of generating capacity. For more information about Tenaska, visit the company's web site at www.tenaska.com.
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