Dominion Power 2006 Annual Report Download - page 23

22 DOMINION 2006 Annual Report
MANUFACTURING–MAINTAIN EXCELLENT OPERATIONS
Percent
For the Year Ended December 31
’05
’05
Dominion Nuclear
Capacity Factor
Dominion Coal
Equivalent Availability
95.1
88.4
83.9
92.4 91.8 9.8
89.
90.4
85.186.388.3
88.5
* Large coal unitsare
>300 megawatts(MW).
Small coal unitsare
<300 MW.
irginiauclear
Merchant uclear
otal uclear
tility LargeCoal*
tility Small Coal*
Merchant Coal
STRATEGIC REFOCUS ON CORE VALUES AND KEY BUSINESSES, CONTINUED
BRIGHT FUTURE IN MIDWEST
We also see a bright future for our fossil-fuel and nuclear
facilities operating in the Midwest. These baseload and
peaking stations benefit from strategic locations. Together,
they generate more than 2,900 megawatts of power,
which is sold under long-term contracts.
SAFE AND EFFICIENT NUCLEAR OPERATOR
A long-standing reputation for superior nuclear operating
performance provides us withacompetitive advantage at
Dominion Generation. Last year, Platts Nucleonics Week,
a McGraw-Hill publication, named our North Anna and
Surry nuclear power stations first and third among the
nation’s most-efficient nuclear generating units for the peri-
od from 2003 through 2005. These same units were rated
among the top 10 low-cost producers the previous year.
Among the highlights of our 2006 nuclear perform-
ance were:
■Three of our nuclear stations achieved “Star”safety
status from the U.S. Department of Labor’s Occupational
Safety & Health Administration, and Kewaunee is
recommended—the first fleet in the country expected to
accomplish this.
■Millstone achieved in excess of 7 million work-hours
without a lost-time accident. In addition, since acquisi-
tion, Kewaunee’s industrial safety accident rate was
reduced by more than 75 percent.
■Millstone Unit 3 reached 393 consecutive days online
at year-end.
■Surry Unit 2 achieved a record 502 consecutive days
online.
■Our North Anna units had overall capacity factors
of 93.9 percent.
OUR FOSSIL FLEET
BELOW-THE-RADAR EXCELLENCE
Although our nuclear fleet may get most of the headlines,
no one should overlook the stellar performance of our
fossil operations, which include facilities fueled by coal,
DOMINION GENERATION:
STRONG AND GROWING STRONGER
Our Dominion Generation business will manage more
than 26,300 megawatts of electricity production after it
completes the sale of three merchant peaking facilities in
2007. About 65 percent supports our Virginia and
North Carolina regulated electric business, while the
remaining 35 percent serves nonregulated customers in
the Northeastern and Midwestern United States. After
completion of the proposed E&P sale, Dominion
Generation is expected to make up about 55 percent
of our company’s operating earnings.
On average, we expect long-term operating earnings
growth of 5 percent to 6 percent annually. Driving this
growth will be continued efficiency gains and expansions
at our existing facilities, new construction supporting a
fast-growing economy in Virginia and a continued prac-
tice of acquiring new assets that build shareholder value.
LARGE AND GROWING PRESENCE IN NEW ENGLAND
Our nonregulated operations today are concentrated in
the Northeast. In New England, our portfolio of generat-
ing stations is the largest, most fuel-diverse and competi-
tive in the region. These stations include our two nuclear
units at Millstone Power Station in Connecticut, a fleet of
coal and oil units at our Brayton Point and Salem Harbor
power stations in Massachusetts, and gas-fired units at our
Manchester Street Station in Rhode Island. These low-
cost generating stations provide us with a competitive
advantage in a power market driven by natural gas. With
strong electric load growth projected in this region and
limited opportunity to add new generation, these assets
will grow even more valuable in the future.
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