Dominion Power 2003 Annual Report Download - page 18

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16.Dominion 2003
Chesterfield
Clover
Elwood State Line Troy
Dresden
Pleasants
Armstrong
Morgantown Mt.Storm
Bremo
Gaston
Roanoke Rapids
Kincaid
Millstone
Fairless Works
Gordonsville Ladysmith
Yorktown
Surry
Chesapeake
Remington
Kewaunee
North Anna
Bath
Possum
Point
Current Generation Portfolio (Major Dominion Operations)
Coal
Hydro
Natural Gas
Nuclear
Oil / Gas Capacity at Plant
Natural Gas
Existing Generation Stations
New Generation Planned/
Under Development
Nuclear
Planned Acquisitions
capability by 56 percent. In fact, we’ve suspended devel-
opment of a planned natural gas pipeline through West
Virginia, Virginia and North Carolina to study whether the
budgeted money can be put to more profitable use at
Cove Point. Global energy giant Statoil confirmed that
our timing appeared good in early 2004. Statoil signed
a letter of intent to contract for additional planned capac-
ity expansions at Cove Point that will nearly double its
overall capability by late 2008. We’ll seek federal regu-
latory approval to begin the process this year.
Investing Wisely: Demand Growth Strategy
In Northern Virginia, on schedule, we placed a
545-megawatt natural gas-fired facility into operation
at our Possum Point Power Station to meet annual
customer demand growth of 1.5 percent at Dominion
Virginia Power.
Opportunities to expand our asset base at a price
that returns immediate profits don’t show up very often.
In November we found one. We signed a deal to
acquire the 545-megawatt Kewaunee Power Plant in
northeastern Wisconsin for $220 million in cash. We will
assume a 10-year power sales contract to serve the two
utilities selling the facility. We expect to begin booking
profits when this nuclear station joins our 5,500-
megawatt nuclear fleet in the autumn of 2004, our best
estimate based on the time required to get the approvals
from several state and federal agencies.
Record Replacement At
North Anna Nuclear Station
Long-time Dominion investors know we rank among the
top three operators of nuclear plants in the nation. Our
Virginia nuclear facilities, North Anna and Surry power
stations, consistently rank among the Top 10 most effi-
cient producers.