Follows Dominion Hub I, which will move 200,000 Dt/day
RICHMOND, Va. – Dominion (NYSE: D) announced today that
its Dominion Transmission subsidiary has received more than 570,000 dekatherms
per day (Dt/day) of interest in its proposed Dominion Hub III project during
a recent open season, and will move forward with obtaining binding precedent
agreements.
“The strong response to our open season demonstrates a high level of
interest from our core customers in having Rockies supply as an option for their
supply portfolios,” said Jeff Keister, director-Wholesale Marketing. “We
are pleased we can offer this additional flexibility to our customers.”
This is the second Dominion project aimed at bringing Rockies supplies into
its system from a planned interconnect with the Rockies Express pipeline in
Clarington, Ohio. The first project, Dominion Hub I, will move up to 200,000
Dt/day of supplies into the Northeast markets on behalf of a Rockies shipper.
Dominion has entered into interconnect agreements with Rockies Express and filed
an application with the Federal Energy Regulatory Commission seeking approval
of Dominion Hub I.
Dominion Hub III would allow Dominion’s firm transportation customers
to move a portion of their firm receipt rights to the planned interconnection
with the Rockies Express pipeline at Clarington. The current design would allow
approximately 300,000 Dt/day of existing firm receipt point entitlements to
be transferred to the Clarington interconnect.
By structuring the project to incorporate existing customer entitlements, Dominion
will be able to maximize the use of existing pipeline infrastructure to move
Rockies supplies to Northeast markets with relatively minor facility additions.
Because no major greenfield construction will be required, the Dominion Hub
III project can be put in place with less disruption to landowners and the environment
than other proposed projects.
Dominion Hub III participants will continue to have secondary access to all
other points on Dominion’s postage stamp system, including access to Dominion
South Point.
Dominion anticipates charging an incremental reservation surcharge for the
receipt point realignment, based on the expected cost of the required facilities.
The target surcharge is currently a unit rate of $0.06 per dekatherm. Rates
for this service will be based on the final design of the project’s facilities.
For additional information, contact Jeff Keister at (804) 819-2820 or Josh
Eakle at (804) 819-2827.
Dominion is one of
the nation's largest producers of energy, with a portfolio of more than 26,500
megawatts of generation and 7,800 miles of natural gas transmission pipeline.
Dominion also owns and operates the nation's largest underground natural gas
storage system with about 960 billion cubic feet of storage
capacity and serves retail energy customers in 11 states.
For more information about Dominion, visit the company's Web site http://www.dom.com.
