Dominion Expects to Spend $8.5 Billion to Meet Growing Electricity Demand

Researched by Industrial Info Resources (Sugar Land, Texas)--Dominion Resources Incorporated (NYSE:D) (Richmond, Virginia) expects to invest $8.5 billion in its electrical system during the next three years to accommodate an annual growth rate of 9.5%, according to a recent news article. The company said it wants to expand and upgrade transmission lines, distribution substations, equipment and generation in its service area to meet demand growth in Virginia, which is one of the fastest-growing areas in the PJM Interconnection region.

The PJM Interconnection coordinates the movement of electricity in all or parts of 13 states in the northeast U.S., plus Washington, D.C.

Primarily driven by population, commercial and industrial growth in the northern part of Virginia, the Dominion Resources service area reached an all-time peak load of 21,651 megawatts (MW) in February.

Industrial Info is tracking 41 power-related capital projects by Dominion Resources, valued at $5.37 billion. The projects mostly are in electrical infrastructure, including 10 projects valued at $1.79 billion; and natural gas-related projects, valued at $2.72 billion. Investments include two coal projects worth $55 million; one oil-fired project worth $17 million; four nuclear projects valued at $64 million; two solar projects worth $87 million; and one wind project valued at $160 million.

Recently, Dominion Resources sold a natural gas transmission company to Dominion Midstream Partners LP, a limited partnership that it controls, in hopes of eventually selling liquefied natural gas to overseas markets.

Dominion is building a 1,358-MW, combined-cycle power plant near Lawrenceville, Virginia, to provide needed generation to the region. Completion of the plant project, with a total investment value of $1.3 billion, is expected next year. A Dominion subsidiary, Virginia Electric and Power Company (Richmond, Virginia), is developing a 12-MW offshore wind demonstration project to collect data to better understand offshore wind potential and weather conditions for a future commercial-scale project. Dominion is working on the project, valued at $48 million, with the Virginia Offshore Wind Technology Advancement Project (VOWTAP) and the U.S. Bureau of Ocean Energy Management (BOEM) (Washington, D.C.).

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