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Released February 24, 2016 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Dominion Virginia Power Company (Richmond, Virginia), a subsidiary of Dominion Resources Incorporated (NYSE:D) (Richmond, Virginia), last month announced plans to invest $9.5 billion in its electric generation, transmission and distribution system over the next five years. As large as that capital program is, it represents a floor, not a ceiling, for capital spending by Dominion Resources, which is also developing a multi-billion-dollar pipeline to bring natural gas to Virginia and North Carolina and, several years into the future, possible new nuclear generation.
With plans to invest nearly $2 billion annually for the next five years, Dominion Virginia Power is continuing its high level of recent capital spending. Last year, the utility said it invested about $1.8 billion in capital projects.
These planned investments will be made to meet electric demand growth, enhance reliability and comply with tightening federal environmental regulations. The utility said its $9.5 billion in scheduled capital outlays through 2020 includes $3.6 billion in transmission lines, $3.5 billion for new generation and environmental upgrades and $2.4 billion to enhance and expand the utility's distribution system. Those investment plans include about $700 million for new solar generation and additional outlays to underground and some overhead distribution lines, the company said. Those latter plans await approval from the Virginia State Corporation Commission (Richmond, Virginia), the utility's regulator.
"We know our customers expect high reliability, clean energy and reasonable rates," Robert M. Blue, president of Dominion Virginia Power, said in a statement January 12. "We focus on that in everything we do, from building new infrastructure to day-to-day maintenance and fast storm response." Reflecting on the $8 billion the electric utility has invested since 2008 in pollution-control projects and electric infrastructure enhancements, Blue added: "Our customers have saved money on their electric bills through that [investment], and it led to cleaner air and a stronger grid." He said that since 2008, those investments have helped improve Dominion Virginia Power's electric reliability by 25%.
The utility has reported sharp gains in electric demand in recent years, and further increases are expected. Dominion Virginia Power currently serves 2.5 million customers in Virginia and northeast North Carolina. Over the last decade, the utility has added about 430,000 new customers, it said.
"Our modern way of life requires lots of energy--and that means infrastructure," Blue continued. "To keep up with energy demand and meet new clean air requirements, Dominion Virginia Power and its parent company are constantly building everything from power stations to power lines, substations to natural gas pipelines."
Some of the utility's largest planned capital outlays over the next five years include:
Also not included in Dominion Virginia Power's capital program is a $6 billion, 2,000-MW offshore wind project, the Hampton Roads Offshore Windfarm. Envisioned as a multi-stage project, the utility plans to begin construction of the first phase of that offshore windfarm in 2021.
Dominion Generation, another unit of Dominion Resources, is considering adding a third nuclear unit to its North Anna complex. That 1,500-MW project, currently budgeted at $11 billion, is in the preliminary design stage. If that unit addition moves forward, construction is scheduled to begin in 2020 and be complete by 2029. Company officials reportedly have said the Obama administration's Clean Power Plan could help make the case for more emission-free nuclear generation. In its 15-year resource plan, filed last year with its regulators, utility officials said adding a third unit at North Anna is one of four options it is considering to ensure future electric demand is met.
"Dominion Virginia Power is experiencing one of the fastest rates of electric load growth of any utility in the U.S.," noted Britt Burt, Industrial Info's vice president of research for the global Power Industry. "The company is making heavy investments all along the electricity value chain to ensure it has adequate generation, transmission and distribution capacity to meet the demands of its growing customer base as well as comply with tougher federal regulations on power plant emissions."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
With plans to invest nearly $2 billion annually for the next five years, Dominion Virginia Power is continuing its high level of recent capital spending. Last year, the utility said it invested about $1.8 billion in capital projects.
These planned investments will be made to meet electric demand growth, enhance reliability and comply with tightening federal environmental regulations. The utility said its $9.5 billion in scheduled capital outlays through 2020 includes $3.6 billion in transmission lines, $3.5 billion for new generation and environmental upgrades and $2.4 billion to enhance and expand the utility's distribution system. Those investment plans include about $700 million for new solar generation and additional outlays to underground and some overhead distribution lines, the company said. Those latter plans await approval from the Virginia State Corporation Commission (Richmond, Virginia), the utility's regulator.
"We know our customers expect high reliability, clean energy and reasonable rates," Robert M. Blue, president of Dominion Virginia Power, said in a statement January 12. "We focus on that in everything we do, from building new infrastructure to day-to-day maintenance and fast storm response." Reflecting on the $8 billion the electric utility has invested since 2008 in pollution-control projects and electric infrastructure enhancements, Blue added: "Our customers have saved money on their electric bills through that [investment], and it led to cleaner air and a stronger grid." He said that since 2008, those investments have helped improve Dominion Virginia Power's electric reliability by 25%.
The utility has reported sharp gains in electric demand in recent years, and further increases are expected. Dominion Virginia Power currently serves 2.5 million customers in Virginia and northeast North Carolina. Over the last decade, the utility has added about 430,000 new customers, it said.
"Our modern way of life requires lots of energy--and that means infrastructure," Blue continued. "To keep up with energy demand and meet new clean air requirements, Dominion Virginia Power and its parent company are constantly building everything from power stations to power lines, substations to natural gas pipelines."
Some of the utility's largest planned capital outlays over the next five years include:
- Emporia Grassroot Combined Cycle Plant, a 1,600-megawatt (MW), $1.2-billion project scheduled to begin construction later this year. This new power plant, slated to be built in Emporia, Virginia, is expected to be operating by yearend 2018. A unit of Fluor Incorporated (NYSE:FLR) (Irving, Texas) will provide engineering, procurement & construction (EPC) services.
- Acomack Grassroot Photovoltaic Plant, an 80-MW, $150-million project scheduled to kick off construction in the next few weeks. This project will be located in Acomack County, Virginia. Signal Energy Constructors (Chattanooga, Tennessee) is providing EPC services to the solar farm, which is scheduled to be generating electricity by the end of 2016.
- A rebuild of the 51 miles of the Cunningham-Elmont 500 kilovolt (kV) transmission line, a $106 million project slated to begin construction in early 2017. Burns & McDonnell Incorporated (Kansas City, Missouri) is providing consulting services on that project, which also includes both the Cunningham and the Elmont substations. The project is scheduled to begin operating in mid-2018.
- Conversion of wet-ash handling system to dry-ash handling system at its Chesterfield Power Station in Chester, Virginia. That $70-million project also is scheduled to begin construction in the next few weeks, and be complete by mid-2017.
- Rebuilding a section of the Carolina-Kerr transmission line, a $58 million project scheduled to kick off construction in mid-2018 and be completed by yearend 2019.
Also not included in Dominion Virginia Power's capital program is a $6 billion, 2,000-MW offshore wind project, the Hampton Roads Offshore Windfarm. Envisioned as a multi-stage project, the utility plans to begin construction of the first phase of that offshore windfarm in 2021.
Dominion Generation, another unit of Dominion Resources, is considering adding a third nuclear unit to its North Anna complex. That 1,500-MW project, currently budgeted at $11 billion, is in the preliminary design stage. If that unit addition moves forward, construction is scheduled to begin in 2020 and be complete by 2029. Company officials reportedly have said the Obama administration's Clean Power Plan could help make the case for more emission-free nuclear generation. In its 15-year resource plan, filed last year with its regulators, utility officials said adding a third unit at North Anna is one of four options it is considering to ensure future electric demand is met.
"Dominion Virginia Power is experiencing one of the fastest rates of electric load growth of any utility in the U.S.," noted Britt Burt, Industrial Info's vice president of research for the global Power Industry. "The company is making heavy investments all along the electricity value chain to ensure it has adequate generation, transmission and distribution capacity to meet the demands of its growing customer base as well as comply with tougher federal regulations on power plant emissions."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
