November 6, 2003
RICHMOND, Va. - Greenbrier Pipeline Co. LLC is suspending field work on its planned Greenbrier Pipeline while project parent Dominion (NYSE:D) reviews whether to shift budgeted funds for pipeline development into expansions now under way at Dominion's Cove Point liquefied natural gas terminal in southern Maryland.
Thos. E. Capps, chief executive officer of Dominion, said:
"The need for investment in new energy infrastructure to serve the growing Mid-Atlantic energy market is steady. Yet, the market is telling us the nature and priority of the needed infrastructure is evolving. Our duty to investors and customers is to be financially flexible, to monitor the market conditions and, ultimately, to deploy our investment capital where the market tells us it is most urgently needed."
The suspension is not expected to affect the company's earnings growth forecasts.
Capps added: "The pipeline remains a viable project. Our capital allocation study does not and should not send the signal that there is no long-term need for incremental growth. Both local distribution companies and long-term power generation growth in the Mid-Atlantic region will require a better gas transportation network. Our pause raises only an issue of pipeline timing, not pipeline need."
Greenbrier has existing agreements with some customers along the proposed pipeline route and continues to negotiate with both existing and other potential customers.
Greenbrier will honor all agreements it has signed with landowners along the right-of-way, but has withdrawn other offers that have not been accepted. Greenbrier will continue to work with regulators and interested stakeholders so that it can move quickly to resume field work on the project at the appropriate time. The Greenbrier Pipeline is a proposed 280-mile interstate pipeline from West Virginia to North Carolina.
Dominion is one of the nation's largest producers of energy, with a diversified and integrated energy portfolio that includes more than 24,000 megawatts of generation and 6.2 trillion cubic feet equivalent of proved natural gas reserves. Dominion also serves 5.3 million retail energy customers in nine states. For more information about Dominion, visit the company's web site at www.dom.com.
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||Robert Fulton, (304) 627-3200 or (412) 690-1370