Electric News Releases - 1999

March 22, 1999

Statement of Virginia Power In Response To
U. S. Department of Energy Awarding Mixed Oxide Fuel Contract

• The following statement is from James P. O'Hanlon, senior vice president-Nuclear, in response to a March 22 news release from the U.S. Department of Energy awarding a contract to reduce surplus plutonium through the conversion and use as commercial nuclear fuel.

"Virginia Power is pleased that the Department of Energy has chosen the Duke Cogema Stone & Webster (DCS) team to carry out this safe and important 'swords-to-plowshares' program.

"Mixed oxide fuel is safe to use and has a proven track record in Europe spanning more than 20 years. Currently 15 nuclear power plants in France, similar in design to North Anna, safely use this fuel. As an industry leader in nuclear fuel handling and services, Virginia Power also will draw on the expertise of our international partners to assure the safe and efficient use of mixed oxide fuel.

"Use of mixed oxide fuel also will be cheaper than current uranium fuel, helping us reduce our overall production costs. We view this contract as a win-win for Virginia Power, its customers and the federal government. Using this fuel will lower our production costs, lower fuel costs for our customers and promote international security by reducing surplus plutonium."

Virginia Power is the principal subsidiary of Dominion Resources Inc., (NYSE: D), an international energy company with headquarters in Richmond.

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