Dominion Power 2005 Annual Report Download - page 16

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14 Dominion 2005
new refueling records. Unit 2 was refueled in 39 days and
Unit 3 in 28 days. Millstone also received renewed 20-year
operating licenses from the U.S. Nuclear Regulatory
Commission. Units 2 and 3 are now licensed to operate
until 2035 and 2045, respectively.
Integration into Regional Transmission Organization
Provides Flexibility and Efficiency
We successfully integrated our electric transmission assets
into PJM—operator of the world’s largest competitive
wholesale electricity market. While we still retain ownership
of this critical infrastructure, participation in PJM gives
us three key advantages: It enhances transmission service
reliability, expands access to regionwide, economical
generation sources, and improves our company’s efficiency
at deploying capital.
Production Delayed, Not Lost at E&P;
Growth to Resume in 2006
In 2006, barring extraordinary events, we expect our E&P unit
to return annual production to a range of about 445 to 455
billion cubic feet equivalent. That’s about 10 billion cubic feet
equivalent less than our prehurricane projections. By 2007,
we expect E&P production to rebound fully and achieve
compounded annual average growth of 5 to 6 percent.
Manufacturing
Maintain cnt rati n
Percent
As of December 31
100
50
0
ini n uc ar a acit act r ini n a ui a nt ai a i it
reco n ts re 300 me tts
m co n ts re 300
irginia uc ar
Mrc ant
ta uc ar
ti it arg a
ti it a a
Mrc ant a
With all the headlines focused on the hurricanes in the
Gulf, people tend to forget that our low-risk onshore gas
production and reserves are the backbone of our natural
gas and oil business. In 2005, we worked hard to expand
this base. In fact, about 68 percent of our total reserves are
onshore in regions dominated by our low-risk gas factories.
I’m proud that our overall E&P program places among
the industry’s top quartile in lowest finding and development
costs and operating expenses.
The fastest, most efficient drilling rigs in the world can
be found at Dominion’s Sonora properties in west Texas.
And according to the latest available data from Oil & Gas
Journal, the 952 net production wells that we drilled in the
United States in 2004 were more than any other company,
major or independent. We replaced 200 percent more
than we produced, a key measure of drilling success and
growth potential. Dominion E&P now holds the fifth largest
position among United States independents in natural
gas reserves and production.
We successfully integrated our
electric transmission assets
into PJM—operator of the world’s
largest competitive wholesale
electricity market.