Dominion Resources Inc. of Richmond, VA, and a subsidiary ofPittsburgh-based Consolidated Natural Gas Co. signed an agreementto develop gas-fired power generation facilities along CNG’spipeline system. Dominion Resources and CNG power company willidentify and evaluate potential sites for development of facilitiesalong CNG’s natural gas pipeline network in Ohio, Pennsylvania, NewYork, West Virginia and Virginia. Dominion Resources and CNGaffiliates will develop, own, operate and maintain the facilitieson a 50-50 ownership basis.

The companies have identified 45 potential development sites, anumber the alliance expects to broaden. Negotiations are under waywith major turbine manufacturers for pricing and delivery of 10turbines over the next two to three years. Letters of intent andmemoranda of understanding with the selected manufacturers areexpected to be signed this month.

Power generated by the facilities will be marketed by TheWholesale Power Group of Dominion Resources. The group nearlytripled its wholesale megawatt-hour sales in 1998 compared to 1997,increasing volume from about 20 million megawatt-hours to more than60 million megawatt-hours. The Wholesale Power Group isincreasingly active in gas wholesale trading and is now marketing aportion of CNG production.

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