Dominion Virginia Power Proposes Fuel Rate Reduction
RICHMOND, Va. - Dominion
Virginia Power, a subsidiary of Dominion (NYSE: D), Monday proposed a $21.7
million fuel rate reduction for its Virginia customers.
If approved by the Virginia State Corporation Commission,
the average monthly bill of a typical residential customer using 1,000 kilowatt-hours
of electricity would decrease by 37 cents, from $84.41 to $84.04. The lower
fuel rate is proposed to take effect Jan. 1, 2003.
"The continued efficiency of the Dominion generating
units combined with a diverse, balanced mix of fuels allows Dominion Virginia
Power to provide reliable, cost-effective electricity to our customers,"
said Edgar M. Roach Jr., president and chief executive officer.
The Dominion nuclear units at Surry and North Anna power stations operated at
a combined capacity factor of 88.15 percent from January 2001 through May 2002.
Similarly, the company's fossil units continued their excellent performances
with a system heat rate of 9,915 British thermal unit per kilowatt-hour.
During 2001, actual coal costs were about 10 percent higher
than projected delivered coal costs while actual costs for oil and natural gas
were as much as 16 percent lower than expected. In the coming year, company
forecasters predict coal prices will remain stable while the prices for oil
and natural gas will continue decreasing.
Dominion Virginia Power rates are composed of two portions,
the base rate and the fuel rate. The base rate covers all costs to generate
and deliver electricity except for fuel and is capped until July 1, 2007, as
part of Virginia's plan to allow competition in the electric utility industry.
The fuel rate pays for the fuel used to generate electricity. Dominion does
not make a profit on fuel expenses, which are passed directly to consumers.
Dominion is one of the nation's largest producers of
energy, with a production capability of more than 3 trillion British thermal
unit of energy per day. Dominion has a diversified and integrated energy portfolio
consisting of nearly 24,000 megawatts of generation, 5.1 trillion cubic feet
equivalent of proved natural gas reserves, 7,600 miles of natural gas transmission
pipeline and the nation's largest underground natural gas storage system with
more than 950 billion cubic feet of storage capacity. Dominion also serves 3.9
million franchise natural gas and electric customers in five states. In addition,
Dominion owns a managing equity interest in Dominion Fiber Ventures LLC, owner
of Dominion Telecom. For more information about Dominion, visit the company's
Web site at www.dom.com.
