Dominion Discontinues Plans For West Virginia
Coal-Fired Generation Project
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.
