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Dominion Virginia Power Files Long-Term Integrated Resource Plan

Posted on: Monday, 21 September 2009, 11:51 CDT

RICHMOND, Va., Sept. 21 /PRNewswire-FirstCall/ -- Dominion Virginia Power has filed its Integrated Resource Plan with the Virginia State Corporation Commission, a document that forecasts growth in customers' demand and energy over the next 15 years at the lowest reasonable cost to customers.

The plan, filed as required by legislation enacted by the Virginia General Assembly in 2008, identifies the most cost-effective way to meet that growth with existing and potential resources. The new resources include renewable and traditional generation facilities and energy efficiency programs.

In particular, the plan identifies the need for additional electric generating capacity from an additional emissions-free nuclear unit, several low-emission natural gas-fired units and renewable power stations in the form of wind and biomass plus increased customer conservation measures to meet rising demand.

"It will take our customers' involvement in energy efficiency programs and Dominion's construction of new generation facilities to support the expected growth in our state over the next 15 years," said Paul D. Koonce, Dominion Virginia Power chief executive officer. "We recognize the importance of being able to meet our customers' needs for the highest level of reliability while doing so in the most efficient and cost-effective manner."

The law requires Virginia utilities to file 15-year integrated resource plans biannually.

To meet the projected electric customer demand and the reserve requirement, the company will need additional resources that total approximately 8,900 megawatts, consisting of approximately 7,900 megawatts of new generation and nearly 950 megawatts of conservation. The plan is intended to guide the company's process as it prepares to meet mid- to long-term energy needs.

The conservation plan includes 12 programs that the company filed in July with the SCC for approval with an initial savings of approximately $1.2 billion over the 15-year period. Additional programs are expected to be developed and introduced over the 15 years.

Also, more than 300 megawatts of demand may be met with renewable generation projects, including wind and biomass. Dominion Virginia Power currently has more than 400 megawatts of renewable generation in its portfolio.

The company is exploring development of a 640-megawatt combined-cycle gas unit in Warren County. It also is considering constructing a third nuclear generating unit at the North Anna Power Station in Louisa County that would provide its customers with approximately 1,300 megawatts of capacity.

"Dominion has been successful in keeping rates steady and below the national average over the years by developing a balanced combination of traditional generating units and renewable energy resources," said Koonce.

"While it reaches a long way into the future, the plan is an important tool in helping us determine the course that is best for our customers and our company," said Koonce. "Some projects have lead times as long as 8-10 years. The plan helps us stay ahead of the curve and prepare accordingly."

"AARP Virginia and the Virginia Citizens Consumer Council are pleased that the 2008 legislation that we supported resulted in a comprehensive Integrated Resource Plan aimed at meeting our state's energy needs at the lowest reasonable cost to Virginia's consumers. We look forward to reviewing the IRP and filing comments indicating where we agree and where we will recommend improvements," both organizations said in a statement.

A copy of the plan (note: this is a large, 22mb file) is available by clicking on this link: http://www.dom.com/news/2009/pdf/integrated_resource_report_090109.pdf

Dominion Virginia Power is a subsidiary of Dominion (NYSE: D), one of the nation's largest producers and transporters of energy, with a portfolio of more than 27,500 megawatts of generation, 1.1 trillion cubic feet equivalent of proved natural gas and oil reserves, 14,000 miles of natural gas transmission, gathering and storage pipeline and 6,000 miles of electric transmission lines. Dominion operates the nation's largest natural gas storage systems with 975 billion cubic feet of storage capacity and serves retail energy customers in 12 states. For more information about Dominion, visit the company's Web site at www.dom.com

SOURCE Dominion Virginia Power

Source: PR Newswire

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