Dominion Agrees To Purchase Tenaska Power Station Development Project In Buckingham County, Va.
Project already permitted for combined-cycle power station
Station would generate about 600 megawatts, enough electricity for 150,000 homes
Unit would begin operations in spring 2011, pending regulatory approvals
RICHMOND, Va. – Dominion (NYSE: D), one of the nation’s largest
producers of energy, announced Wednesday that it has agreed to purchase a power
station development project in central Virginia from Tenaska, one of the nation’s
largest independent power producers. The station will generate about
600 megawatts of electricity when completed.
The 35-acre project is part of
a 665-acre parcel in Buckingham County and already has air and water permits
for a combined-cycle, natural gas-fired power station. Dominion plans
to build a 2-on-1 unit, in which two gas turbines generate electricity and
exhaust heat produces steam to generate additional electricity.
The development
project is located about 1.5 miles southeast of New Canton, near Route 670
in Buckingham County and across the James River from Dominion’s
existing coal-fired Bremo Power Station. The purchase price is confidential.
"Our
Virginia customers are projected to need at least 4,000 megawatts of additional
electric capacity during the next decade, even after taking conservation efforts
into account," said Thomas F. Farrell II, chairman, president
and chief executive officer. "To meet this demand, this power station
will be a component of a balanced mix, along with other new generation and
new technologies."
David Fiorelli, president and CEO, Tenaska Business
Development Group, said:
"Re-regulation of the Virginia electric utility
industry and a desire by Dominion and the state of Virginia to have sufficient
in-state generation to meet the growing Virginia load makes Dominion the logical
owner of this project. Tenaska continues to believe the PJM market is an attractive
market in which to construct and own new generation and is actively developing
other sites in PJM."
"We are pleased that the purchase is
being made by a well-respected Virginia company that intends to develop the
site, building upon the support of the citizens of Buckingham County," Fiorelli
added.
Regulatory approvals are required before construction
can begin. The
project is expected to generate 300 construction jobs. The station will
employ 20 people full-time once it is built.
Dominion is one of the nation's
largest producers and transporters of energy, with a portfolio of approximately
26,500 megawatts of generation, 7,800 miles of natural gas transmission pipeline
and 1 trillion cubic feet equivalent (Tcfe) of proved natural gas and oil reserves.
Dominion also owns and operates the nation's largest underground natural gas
storage system with about 960 billion cubic feet of storage capacity and serves
retail energy customers in 11 states. For more information about Dominion,
visit the company's Web site at http://www.dom.com.
Tenaska
is an energy company, based in Omaha, Nebraska, that develops, constructs,
owns and operates non-utility generation and cogeneration plants. The
privately held company also markets natural gas and electric power and provides
risk management services. Tenaska also is involved in asset acquisition,
fuel supply, gas transportation systems, and electric transmission development. Tenaska
has developed about 9,000 megawatts of electric generating capacity across
the United States. Its affiliates own, operate and manage eight power plants
in six states totaling about 7,400 megawatts of generating capacity. For
more information about Tenaska, visit the company's web site at www.tenaska.com.
