Even before their merger is consummated, Dominion Resources andConsolidated Natural Gas are making plans to begin development offour gas-fired electric power generation facilities along CNGTransmission in Ohio, Pennsylvania and West Virginia. Thefacilities represent up to $800 million in local investment. Allfour plants are expected to be in service in time for peak summerdemand in 2002.

The four proposed projects include a 600 MW facility in WoodCounty, OH, a 300-600 MW facility in Armstrong County, PA, a 600MW facility in Muskingum County, OH, and a 300-600 MW plant inPleasants County, WV.

Dominion and CNG affiliates will construct, operate and maintainthe facilities on a 50-50 basis. The two companies are consideringadditional sites for development along CNG’s natural gas pipelinenetwork in Ohio, Pennsylvania, New York, Virginia and WestVirginia. In April, they said they identified 45 potential sitesand started negotiations with major turbine manufacturers forpricing and delivery of 10 turbines over the next two to threeyears.

The Wood County, OH, plant is to be built at the LemoyneIndustrial Park about two miles northeast of Luckey, OH. Thecompanies plan to identify a site for the Muskingum County, OH,plant by July. The gas-fired generating plant in Armstrong County,PA, will be located on an industrial site owned by CNG near itsSouth Bend Compressor Station in Elderton.

In February, Virginia Power parent Dominion Resources, based inRichmond, VA, and CNG, based in Pittsburgh, PA, signed a definitivemerger agreement. Dominion fought off a competing bid by ColumbiaEnergy earlier this month by upgrading its own offer to $6.4billion. The merger of CNG and Dominion is expected to be completedby the end of this year.

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