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Dominion, CNG Plan Up to 2,400 MW of New Power

Dominion, CNG Plan Up to 2,400 MW of New Power

Even before their merger is consummated, Dominion Resources and Consolidated Natural Gas are making plans to begin development of four gas-fired peaking power generation facilities along CNG Transmission in Ohio, Pennsylvania and West Virginia. The facilities represent up to $800 million in local investment. All four plants are expected to be in service in time for peak summer demand in 2002.

The proposed projects include a 600 MW facility in Wood County, OH, a 300-600 MW facility in Armstrong County, PA, a 600 MW facility in Muskingum County, OH, and a 300-600 MW plant in Pleasants County, WV. The amount of gas they burn will be determined by how often they're dispatched during peaking power demand periods, a spokesman noted last week.

Dominion and CNG affiliates will construct, operate and maintain the facilities on a 50-50 basis. Dominion said on Friday it has signed an agreement with General Electric Co. for an option to purchase 10 natural gas-fired electric generation turbines for an undisclosed sum.

Dominion and CNG are considering additional sites for development along CNG's natural gas pipeline network in Ohio, Pennsylvania, New York, Virginia and West Virginia. In April, they said they identified 45 potential sites.

The Wood County, OH, plant is to be built at the Lemoyne Industrial Park about two miles northeast of Luckey, OH. The companies 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 its South Bend Compressor Station in Elderton.

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

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