Dominion Resources Signs Agreement for 10 Natural
Gas Turbines
RICHMOND, Va. – Dominion Resources Inc. (NYSE: D) announced
today that it has signed an agreement with General Electric Co. for an option
to purchase 10 natural gas-fired electric generation turbines for an undisclosed
sum.
On Tuesday, Dominion Resources and Consolidated Natural Gas
Co. (NYSE: CNG) announced that they expect to begin development of a total of
four natural gas-fired generation facilities in three states. The GE Model PA7241-FA
turbines, which each have a rated capacity of 172 megawatts, are expected to
be used in these facilities.
Thomas F. Farrell II, chief executive officer of Dominion
Generation, Dominion Resources’ generating subsidiary, said:
"Today’s announcement is further evidence of our commitment
to move forward as expeditiously as possible to address the developing need
for additional electric generation capacity in the strategic Midwest-to-Northeast
region of the U.S., home to 40 percent of the nation’s demand for energy.
"It also evidences our commitment to environmentally sensitive
operations: These turbines have the highest environmental performance and are
the most technologically advanced of any on the market today.
"We look forward to working with local and state officials
and with the communities at large as development of these projects continues
moving forward."
The four facilities are part of an exclusive alliance agreement
between Dominion and CNG, which are merging, to build and operate natural gas-fired
electric generation businesses along CNG’s natural gas pipeline system. The
two companies are evaluating sites in Armstrong County, Pennsylvania; Muskingum
County and Wood County, Ohio; and Pleasants County, West Virginia.
The four projects could represent a combined capacity of
2,400 megawatts and a total investment of $800 million. Construction on the
projects is expected to begin in 2001 and be completed by mid-2002.
