Dominion Asks Wisconsin Regulators To Reconsider Kewaunee Power Plant Decision
RICHMOND, Va. – Dominion (NYSE: D), one of the nation’s
largest energy companies, Monday asked the Public Service Commission of Wisconsin
to reconsider its decision regarding the sale of Kewaunee Nuclear Power Plant.
The commission on Nov. 19 voted 2-1 to deny the sale of Kewaunee
from Wisconsin Public Service Corporation, a subsidiary of WPS Resources Corporation
(NYSE: WPS), and Wisconsin Power & Light Company (WP&L), a subsidiary
of Alliant Energy Corporation (NYSE: LNT), to Dominion. The commission issued
its written order on Dec. 16. Dominion announced in November 2003 that it would
pay $220 million in cash for the 545-megawatt single-unit station, which is
located on Lake Michigan about 35 miles southeast of Green Bay.
Thos. E. Capps, Dominion chairman and chief executive officer,
said:
"Throughout this process, we have remained convinced that purchasing Kewaunee
is the right thing to do for both Wisconsin’s electric customers and Dominion’s
shareholders. The commission spelled out three specific issues that led to its
decision. We believe our action today answers those concerns."
Both WPS and WP&L joined Dominion in making the rehearing
request. In its motion, Dominion said it would:
Grant WPS and WP&L and record a right of first refusal
to repurchase Kewaunee in any future sale on the same terms and conditions
as another company. Through operation of the right of first refusal, the obligations
assumed by Dominion would also bind subsequent purchasers of the plant. In
addition, WPS and WP&L would first have to ask the Wisconsin commission
whether it was prudent to exercise or waive their rights before a sale to
a third party could proceed.
Return to WPS and WP&L, for distribution to their customers,
any excess ratepayer funds contained in the qualified decommissioning trust
fund upon final completion of all decommissioning activities at the power
station.
Increase the total level of guaranties of Dominion Energy
Kewaunee, the Dominion unit that will own and operate the power station, to
WPS and WP&L.
"The grant of the [right of first refusal], and the exercise
or waiver of [WPS’s and WP&L’s] rights thereunder, will provide
the Commission a mechanism for the review of all subsequent sales of [the power
station]. By requiring successive buyers … to agree to be bound by the
Proffered Conditions, including the [right of first refusal], the Commission
is assured of a 'meaningful role' in all future sales of the plant," Dominion
said in its request for a rehearing.
The three new conditions are being added to seven already
introduced as a part of the previous filing. These seven included assurances
that the commission would have approval regarding the creditworthiness of a
subsequent owner and that there would be a prohibition of storing nuclear waste
at Kewaunee from any other source.
The proposed sale has received significant support from station
employees, electric customers, community organizations, lawmakers and many local
governments. All other regulatory bodies, including the U.S. Nuclear Regulatory
Commission, have approved the sale.
Dominion is one of the nation's largest producers of energy,
with an energy portfolio of about 25,500 megawatts of generation, 6.4 trillion
cubic feet equivalent of proved natural gas reserves and 7,900 miles of natural
gas transmission pipeline. Dominion also operates the nation's largest underground
natural gas storage system with more than 960 billion cubic feet of storage
capacity and serves retail energy customers in eight states. For more information
about Dominion, visit the company's Web site at www.dom.com.
