Dominion to Acquire 583MW State Line Power Station and Improve Generation Source Diversification

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The following is an advisory by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Dominion (NYSE: D) (Richmond, Virginia) is acquiring a two-unit coal-fired 583-megawatt (MW) power station outside Hammond, Indiana from Mirant State Line Ventures Inc., a totally owned subsidiary of Mirant Corporation (NYSE: MIR) (Atlanta, Georgia) for $182 million. Dominion has been developing natural gas-fired peaking plants and earlier this month withdrew from an 800MW natural gas-fired plant in Michigan, stating that they wished to focus on other generation opportunities. By acquiring this plant, Dominion will see immediate returns and improve fuel diversification.

The State Line Power Station has two coal-fired units utilizing low sulfur coal from the Powder River Basin in Wyoming. Unit No. 3 is an ABB tangential-fired dry bottom boiler (1.4MM lb/hr, 2100psi @ 1050F) with a 243MW General Electric (GE) steam turbine/generator and Unit No. 4 is a Babcock & Wilcox (B&W) cyclone-fired wet bottom boiler (2.2MM lb/hr, 2200psi @ 1050F) with a Siemens Westinghouse 340MW steam turbine/generator set. State Line will be the thirteenth coal-fired station in Dominion's stable and the acquisition assures a power purchase agreement with Exelon that expires in 2012.

With almost 4 million customers, Dominion's portfolio consists of 22,000 megawatts of electric generation, 4.6 trillion cubic feet equivalent of natural gas reserves, 7,600 miles of natural gas pipeline and the nation's largest underground natural gas storage system with nearly 960 billion cubic feet of storage capacity.