Study Shows Dominion Pipeline Improvements Will Benefit Central Pennsylvania
RICHMOND, Va. -- Dominion’s proposed natural gas pipeline
improvements will provide major economic benefits to central Pennsylvania, including
creation of new jobs, more regional economic activity and more revenues for
state and local governments, according to a study by the Regional Research Institute
at West Virginia University.
Dominion is proposing the $190 million improvements in Pennsylvania
in order to get more of the natural gas imported at its Chesapeake Bay facility
in Maryland to customers in Pennsylvania and the Northeast.
The project is important to continuing population and industrial
growth in Pennsylvania and throughout the Northeast, as it will bring to the
region increased supplies of natural gas, the fuel of choice for many homes,
businesses and electric power generators, according to the study.
The study found that the project would generate 386 jobs at
the peak of construction, $11.9 million in wage earnings and $37 million in
gross state product for Pennsylvania economies. The proposed pipeline would
also generate approximately $900,000 in tax revenues for state and local economies.
According to Congressman John Peterson (R-PA/5): "Clean-burning
natural gas is a vital energy source for heating homes and businesses, fueling
industries and transportation systems, and even creating products such as plastics,
petrochemicals and fertilizer. Rising natural gas prices have had a significant
impact on home energy costs, and have forced many industries to shut down operations,
eliminate jobs, or raise prices on consumers. This project will not only improve
access to this important energy source in central Pennsylvania, but will create
well-paying jobs and bring much-needed revenue to our region."
According to Pennsylvania State Senator Jake Corman (R-34):
"Home heating costs have risen dramatically the last few years, putting
a strain on many families, particularly those on a fixed income. This project
will bring in new supplies of natural gas and enhance central Pennsylvania's
key role in providing natural storage for the Northeast."
The expansion involves the extension, upgrading and modernization
of existing pipelines in several counties, including Centre, Clinton, Greene,
Huntingdon, Juniata, Mifflin and Potter. However, most of the benefits will
be in Centre, Clinton, Huntingdon, Juniata, and Mifflin counties. A pipeline
extension approximately 81 miles long will be built through those counties,
and compressor stations are to be located in Centre and Juniata counties.
According to the study, 382 of the 386 jobs will be generated
by the construction phase of the project, which is scheduled for 2008. Fifty-nine
percent of the jobs created (or 229) are direct jobs working in pipeline construction
at wages significantly higher than averages in the counties the pipeline would
traverse.
By adding new natural gas supplies, the study said, the project
will act as a damper on price spikes caused by existing supply constraints during
periods of peak consumption. Increased supply will also aid population and industrial
growth.
"An expanded supply of energy in the region and Northeast
will enhance current population and industrial growth, a trend that is expected
to continue in the future," the report said. "Without adequate energy
supply, this growth cannot be sustained. The proposed pipeline expansion project
will address this and other related needs facing the region."
"Dominion’s vast underground natural gas storage
system in central Pennsylvania has long been a vital part of the Northeast’s
economic vitality," said Thomas F. Farrell II, Dominion president and chief
operating officer. "This project will bring new supplies to the area, increase
storage capacity, and provide a basis for continued economic growth in Pennsylvania
and the Northeast. We look forward to furthering our strong relationship with
central Pennsylvania as we proceed with the expansion project. As Federal Reserve
Chairman Alan Greenspan says, natural gas imports can play a significant role
in meeting our nation’s future energy requirements."
The Regional Research Institute conducts and promotes interdisciplinary
research on economic and social development. As a center of regional research
excellence for more than three decades, the RRI has served as an internationally
recognized center for the advancement of regional science — an interdisciplinary
field at the intersection of geography, economics and planning. The report was
prepared at the request of Dominion. The complete report can be found on Dominion’s
website, www.dom.com; keyword:
cpexpansion.
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 about 5 million retail energy customers in nine states.
For more information about Dominion, visit the company's Web site at www.dom.com.
