Dominion to Partner With BP on Indiana Wind Power Project

-Partnership covers 650 megawatts of 750-megawatt project
-Project adds to Dominion’s growing renewable energy portfolio
-Deal includes long-term purchase of 200 megawatts of facility’s production

January 24, 2008

RICHMOND, Va. – Dominion (NYSE: D) announced today that it has acquired a 50 percent interest in the Fowler Ridge Wind Farm from BP Alternative Energy Inc.  The facility is in Benton County, Indiana, about 90 miles northwest of Indianapolis.

"This project is a perfect fit for Dominion’s plans to increase our renewable energy portfolio substantially in light of the nation’s growing demand for clean energy," said Thomas F. Farrell II, Dominion chairman, president and chief executive officer.  "The site is located in an area with an excellent wind resource in PJM, and we are pleased to be partnering with BP, a company that is well known as a premier renewable energy developer."

The Fowler Ridge facility is expected to be built in two phases and generate a total of 750 megawatts.  Dominion and BP are partners for 650 megawatts, with BP retaining sole ownership of 100 megawatts.  The first phase of approximately 222 turbines producing up to 400 megawatts is expected to be operating by the end of this year.  Dominion has entered into a long-term power purchase agreement for 200 megawatts.  Construction of the second phase of 350 megawatts could begin as early as 2009.  Terms were not disclosed.

The entire facility will be in PJM Interconnection, the independent operator of the electric transmission system and the wholesale energy market in 13 states and the District of Columbia.  PJM’s regional grid stretches from Chicago to the Mid-Atlantic.

The Fowler Ridge Wind Farm is Dominion’s second wind-to-electricity project. The company is a 50-percent partner in a 264-megwatt facility in Grant County, W.Va.  Dominion has another 413 megawatts of renewable generation already in place, providing enough electricity to power more than 100,000 homes during times of peak demand.

About Dominion

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/.

About BP Alternative Energy/BP America

BP Alternative Energy, launched in November 2005, combines all of BP’s interests in low and zero-carbon energy including wind, solar, hydrogen power with carbon capture and storage, natural gas-fired power generation, biofuels for low carbon transport and distributed energy for emerging markets.  BP Alternative Energy is one of the leading wind developers in the US and has portfolios in Europe, Asia & Latin America.  BP’s US wind portfolio includes the opportunity to develop almost 100 projects with a potential total generating capacity of 15,000 MW.  BP America is the largest producer of oil and gas in the United States and one of the nation’s largest energy investors.

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BP Press Office, (202) 457-6603
 

 
     
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Laura Kottkamp, (804) 819-2254