Consortium Formed to Explore Development of New Coal-Fired Power Station in Southwest Virginia
RICHMOND, Va. – Virginia’s leading
electric utilities announced Thursday that they have formed a consortium to
explore the development of an approximately $1 billion coal-fired electric power
station in Southwest Virginia.
The consortium members are Dominion (NYSE: D);
Appalachian Power, a unit of American Electric Power (NYSE: AEP); the Old Dominion
Electric Cooperative; the Virginia Municipal Electric Association; and the Blue
Ridge Power Agency.
The Virginia Electric Utility Restructuring Act
encourages the development of a coal-fired power station in the state’s
coalfield region that would utilize Virginia coal to provide electricity for
the companies’ native load and default service customers. Default service
customers are those who either do not select a competitive provider, are unable
to obtain service from one, or contract with one that fails to deliver. The
act provides a broad “safety net” for default service customers,
including rates set by the State Corporation Commission. Default service protections
authorized by the act will continue indefinitely.
Dominion will undertake the initial power station
development activities, which include the evaluation of available coal-burning
technologies, siting and regulatory activities. A possible timeline has station
site evaluation beginning this year, construction starting in 2008 and commercial
operation beginning in 2012.
The non-binding agreement is an expression of
the companies’ joint interest in exploring the development of the power
station. It does not commit them to undertaking the actual construction or operation
of the project.
If a decision were made to build the station,
each of the companies then would have to decide if it wanted to be a partner,
and definitive agreements outlining the role and responsibility of each would
be drafted and agreed upon. The construction costs and the generation output
would be shared proportionately by those parties signing the definitive agreements.
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CONTACTS:
Media inquiries:
Dominion - Dan
Genest, 804-771-6115
Appalachian Power - Dan Carson, 540-985-2900
Old Dominion Electric Cooperative - John C. Lee, Jr.,
804-968-4067
Virginia Municipal Electric Association - Mike York,
540-434-5361
Blue Ridge Power Agency - Duane Dahlquist,
434-799-8375
