Dominion Discontinues Plans For West Virginia Coal-Fired Generation Project

April 19, 2002

RICHMOND, Va. - Dominion (NYSE: D) said today that it will discontinue plans to build a coal-fired power station in Upshur County, W.Va.

Thos. E. Capps, chairman, president and chief executive officer, said:

"After thorough analysis and careful deliberations, we have concluded that the economics of this project cannot successfully support the plans we originally envisioned for this site."

The project, announced last June in cooperation with Anker Energy Corporation, included construction of a 450-megawatt electric generation station that would have burned coal and coal waste from on-site mining operations.

Gerald Peacock, interim president of Anker, said:

"We are disappointed with the decision made by Dominion, and Anker is still very excited about the long-term prospects of the project."

Capps added:

"Tremendous effort has been put forth by many individuals on the local, state and federal levels during our nine-month study and due diligence process. We are especially grateful to Governor Bob Wise and his staff for their ongoing support and encouragement. The West Virginia Division of Environmental Protection, the state Economic Development Council, and local officials from the city of Buckhannon have been particularly helpful. We want to express our sincere appreciation for their assistance during our study period and offer our continuing thanks for their support of our many other operations in West Virginia."

Dominion employs about 1,500 in West Virginia and has more than $2.5 billion invested in the state. Nearly $1 billion of new investment is planned or underway. "These new investments and our existing operations throughout West Virginia are critical to our entire enterprise. We remain committed to them, their employees and the people they serve," Capps said.

In March, Dominion began commercial operations at a $125 million electric generation facility in Pleasants County. A $542 million environmental upgrade project at the company's Mt. Storm power station is in the process of being completed.

Plans are also proceeding for construction of a 270-mile natural gas transportation pipeline. More than 40 percent of the Greenbrier Pipeline's $480 million project investment will be made in West Virginia.

An additional $114 million is planned or recently has been invested in new natural gas wells, additional gas storage fields, and upgrades at the company's gas byproducts processing facility in Wetzel County.

Dominion is the parent company of Dominion Hope, the Clarksburg-based natural gas distribution company serving 114,000 retail customers in about 28 counties. Dominion owns nearly 1,400 miles of natural gas transmission pipeline in West Virginia and owns and operates one of the region's largest gas storage systems with underground storage pools in Lewis, Harrison and Gilmer Counties. The company processes natural gas byproducts, such as propane and butane, from an extraction facility in Wetzel County.

Dominion is also one of the state's most active natural gas developers. It's net production per day totals 70 million cubic feet equivalent from about 278 billion cubic feet of remaining reserves in the state.

Dominion also operates a 66-megawatt generation station in Morgantown.

Dominion, headquartered in Richmond, Va., is one of the nation's largest energy producers.


 

CONTACTS:    
Media: Hunter A. Applewhite, 804-819-2043  
     
Analysts: Thomas P. Wohlfarth, 804-819-2150