Remarks – Thomas F. Farrell
II Chairman, President & CEO Dominion
North Anna Power Station Unit 3 COL News Conference Nov. 28, 2007
Good afternoon, and thank you for coming.
We
invited you here today to announce that Dominion has taken an important step
to meet Virginia’s future energy needs, while simultaneously protecting
the environment.
Yesterday − November 27 − Dominion became the nation’s first investor-owned
electric utility to file a complete application with the Nuclear Regulatory
Commission for a combined Construction and Operating License – known
as a COL – for a possible third reactor at the North Anna Power Station
in Louisa County.
The COL application was submitted under
guidelines established by the U.S. Department of Energy’s Nuclear
Power 2010 program, a joint government and industry cost-sharing
effort that addresses a range of issues affecting the potential expansion
of nuclear power in the U.S.
The COL unites into one step the federal regulatory
approvals required for construction and operation of a new nuclear unit.
Its
purpose is to resolve all construction and operational issues before construction
begins – a major advance in streamlining a highly complex and lengthy
permitting process.
We
started this process in 2003, when Dominion filed with the NRC for an Early
Site Permit for a new reactor at the North Anna site. The ESP is designed
to resolve all safety, environmental and emergency preparedness issues.
I am
pleased to report that last week the NRC approved our application for an Early
Site Permit at North Anna. Dave Christian, Dominion’s
Chief Nuclear Officer, will have more to say about that permit in a few minutes.
With
yesterday’s filing of the COL application, we completed the last
federal requirement needed to bring the benefits of new nuclear generation
to our Virginia customers – including low-cost, reliable electric power
that is carbon free and environmentally friendly.
Dominion firmly believes
that advanced nuclear technology can and must play
a leading role in reducing carbon emissions and the release of greenhouse gases
into the atmosphere.
Here in Virginia, Governor Kaine and the General Assembly
have taken important steps to promote nuclear as a reliable, safe and economic
energy source for the Commonwealth.
The Governor’s 10-year Energy Plan
includes nuclear power in the mix of resources that will be required to meet
Virginia’s future energy needs,
along with natural gas, clean coal, renewable energy sources and conservation
measures.
In fact, Virginia’s Energy Plan recognizes that the Commonwealth
has … “an
opportunity to be the leader in nuclear energy”… among the 50
states.
The General Assembly has done its part as well. This past spring,
lawmakers overwhelmingly passed comprehensive legislation to re-regulate Virginia’s
electric utilities. This law included financial incentives and other
valuable support for building new nuclear generating capacity within our state’s
borders. The re-regulation act is an important endorsement by the General
Assembly of nuclear power’s vital role in achieving a secure energy future
for Virginia.
I want to make it clear that without this change in
law we would not be gathered here today. Without the innovative changes
in our regulatory system, Dominion would not be building this station.
The future does indeed
look bright for Virginia. Our state has
one of the most robust economies in the nation. In fact, the Commonwealth
ranks first in the area of high-tech job growth, led by Northern Virginia,
Richmond and Hampton Roads.
Rapid economic growth is good news for the Commonwealth,
but it presents special challenges for Dominion as the largest energy provider
in the state.
Energy demand in our service area is projected to increase
by more than 4,000 megawatts over the next decade. That is the equivalent
of adding one million homes to those we already serve. A strong economy
requires more energy to support its continued growth. And growth means
more jobs, more tax revenues and more financial resources with which to address
community needs.
The key question confronting the Commonwealth is: Where
will the additional power come from to sustain this growth?
According to the
U.S. Energy Information Administration, Virginia already imports more power
from outside its borders than any state except California.
We can begin to
rectify that imbalance with a comprehensive approach that combines conservation
and efficiency programs with renewable energy sources and new, economic and
environmentally sound base-load generation. This
strategy will give Virginia more control over its own destiny by relying less
on volatile energy supply markets. It also supports the state’s
10-year Energy Plan.
Assuming we obtain a favorable ruling from the NRC
on our COL application in 2011*, Dominion could break ground on North Anna
3 that same year. The
target date for commercial operation of the new reactor would then be 2016-17*. Regulatory
bodies in Virginia and North Carolina must also approve the new reactor before
construction can begin.
I want to emphasize that completion of the federal licensing
process gives Dominion the option to build and operate a new reactor
at a specific site. It does not obligate us to do so.
We
have not made a final decision about building North Anna 3. We
still have hurdles in front of us. But adding new base-load generating
capacity requires extensive long-term planning and significant capital investment. The
time to prepare for the future is now.
Keeping the nuclear option on the table
gives Dominion the flexibility we need to respond efficiently and effectively
to the energy challenges that lie ahead. It also helps promote a balanced
and diverse energy supply, ensures reliable electric service and stable prices
for our customers, and protects environmental quality.
We simply cannot afford
to overlook the benefits that nuclear power has to offer.
I am now going to
ask Dave Christian to come forward to talk about some of the technical aspects
of North Anna 3. Following Dave’s comments,
we will answer any questions you may have.
*These dates reflect a schedule change announced in April 2008.
