Dominion, CNG Seeking Power Plant Options
Dominion Resources Inc. of Richmond, VA, and a subsidiary of
Pittsburgh-based Consolidated Natural Gas Co. signed an agreement
to develop gas-fired power generation facilities along CNG's
pipeline system. Dominion Resources and CNG power company will
identify and evaluate potential sites for development of facilities
along CNG's natural gas pipeline network in Ohio, Pennsylvania, New
York, West Virginia and Virginia. Dominion Resources and CNG
affiliates will develop, own, operate and maintain the facilities
on a 50-50 ownership basis.
The companies have identified 45 potential development sites, a
number the alliance expects to broaden. Negotiations are under way
with major turbine manufacturers for pricing and delivery of 10
turbines over the next two to three years. Letters of intent and
memoranda of understanding with the selected manufacturers are
expected to be signed this month.
Power generated by the facilities will be marketed by The
Wholesale Power Group of Dominion Resources. The group nearly
tripled its wholesale megawatt-hour sales in 1998 compared to 1997,
increasing volume from about 20 million megawatt-hours to more than
60 million megawatt-hours. The Wholesale Power Group is
increasingly active in gas wholesale trading and is now marketing a
portion of CNG production.
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