Even before their merger is consummated, Dominion Resources andConsolidated Natural Gas are making plans to begin development offour gas-fired peaking 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 proposed projects include a 600 MW facility in Wood County,OH, a 300-600 MW facility in Armstrong County, PA, a 600 MWfacility in Muskingum County, OH, and a 300-600 MW plant inPleasants County, WV. The amount of gas they burn will bedetermined by how often they’re dispatched during peaking powerdemand periods, a spokesman noted last week.

Dominion and CNG affiliates will construct, operate and maintainthe facilities on a 50-50 basis. Dominion said on Friday it hassigned an agreement with General Electric Co. for an option topurchase 10 natural gas-fired electric generation turbines for anundisclosed sum.

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

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. Rocco Canonica

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