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Dominion, CNG Seeking Power Plant Options

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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