Dominion Supplying Future Energy Demands Through Diverse Fuel Mix

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Researched by Industrial Info Resources (Sugar Land, Texas)--In order to meet increasing demand of about 4,000 megawatts (MW) in its service area by 2017, Dominion Resources Incorporated (NYSE:D) (Richmond, Virginia) is turning to a diverse mix of fuel sources. Demand for power is rising faster in Dominion's service area than any other in the 13-state PJM transmission region, which includes Pennsylvania, New Jersey and Maryland. The company plans to satisfy this growing appetite for electricity by adding capacity fueled by coal, natural gas, nuclear and renewable energy sources.

The company is under way on projects valued at over $1.8 billion to add more than 945 MW. Most recently, the company started construction of the 585-MW Virginia City Hybrid Energy Center near Saint Paul, Virginia. The plant will utilize two circulating fluidized bed boilers fueled by coal and 20% biomass to drive a steam turbine. The Shaw Group (NYSE:SGR) (Baton Rouge, Louisiana) has been awarded the engineering, procurement and construction project, which is scheduled for completion in 2012. In addition to this project, the company has 360 MW of natural-gas-fired generation scheduled for completion later this year.

Still scheduled to kick off construction this year is the Bear Garden Generating Station, acquired last year from Tenaska Incorporated (Omaha, Nebraska). The Bear Garden Project near New Canton, Virginia, will comprise two General Electric (NYSE:GE) (Fairfield, Connecticut) MS7001FA combustion turbine generators in a combined-cycle configuration to supply 600 MW by 2011. Fluor Enterprises (NYSE:FLR) (Irvine, California) has been selected as the project's engineering and construction firm. Later this year, construction is expected to begin on a simple-cycle natural-gas-fired combustion turbine at an existing power station.

Dominion expects to begin construction on more than 1,100 MW of natural-gas-fired capacity by 2011. This includes a combined-cycle addition to an existing power plant, as well as a 600-MW project in Warren County, Virginia. This project was acquired from Competitive Power Ventures (Silver Spring, Maryland) this year. The Warren County Project will be a 2-on-1 combined-cycle plant expected to start construction in 2011.

In addition to new fossil-fuel-fired generation, Dominion has formed partnerships to develop 814 MW of wind power. Nuclear power is also on the company's radar, with at least one and possibly two 1,500-MW nuclear units being studied for installation at existing nuclear sites.

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