Dominion Completes Millstone Purchase

RICHMOND, Va. – Dominion (NYSE: D) announced Saturday completion of its purchase of Millstone Power Station from Northeast Utilities (NYSE: NU) for $1.28 billion.

"This closing is a significant step forward in fulfilling our growth strategy to become a major regional provider of energy and energy services,” said Thos. E. Capps, chairman, president and chief executive officer. “We look forward to being an active corporate citizen in Connecticut and a dependable provider of safe, efficient and reliable energy for New England.”

Millstone, located in Waterford, Conn., includes two operating nuclear reactors – Unit 2, an 870-megawatt pressurized water reactor, and Unit 3, a 1,150-megawatt pressurized water reactor.

Millstone Unit 1 is no longer in service and is being placed in a safe storage condition for eventual decommissioning.

Dominion acquired 100 percent ownership of Units 1 and 2 and 93.47 percent ownership of Unit 3, which consists of all of Northeast Utilities’ 68 percent interest and 25.47 percent owned by other entities. The purchase price includes approximately $105 million for nuclear fuel.

Dominion also owns and operates the North Anna Power Station, which has two 900-megawatt pressurized water reactors, and the Surry Power Station, which has two 800-megawatt pressurized water reactors. Both facilities are located in Virginia.

Dominion, headquartered in Richmond, Va., is one of the nation’s largest producers of energy, with a production capability of 2.7 trillion British Thermal Units of energy per day. The company has a power generation portfolio of more than 21,000 megawatts, which is expected to grow to approximately 28,000 megawatts by 2005. Dominion is one of the largest independent oil and natural gas exploration and production companies in North America, with 2.8 trillion cubic feet of equivalent reserves. The company has 7,600 miles of interstate natural gas pipeline and a delivery capability of 6.3 billion cubic feet per day.

In addition, the company operates the nation’s largest underground natural gas storage system, with over 950 billion cubic feet of storage capacity. Dominion serves nearly 4 million retail natural gas and electric customers. Dominion also has a managing equity interest in Dominion Fiber Ventures LLC, owner of Dominion Telecom. Dominion Telecom is expanding its fiber-optic network from 35,000 fiber miles (3,600 route miles) to more than 800,000 fiber miles (9,000 route miles). For more information about Dominion, visit the company's web site at www.dom.com.