Gas

Dominion plans $300 million investment in Hickman County, Tenn.

HICKMAN COUNTY, Tenn., Aug. 13, 2001 — Dominion today announced preliminary plans to construct and operate a natural gas-fired electric generating facility adjacent to the Hickman County industrial park, about 2 miles west of Centerville, Tennessee.

If the 600-megawatt natural gas-fired facility is brought to completion, it would represent an investment of about $300 million in Hickman County and would employ about 250 construction workers and 25 highly skilled, permanent employees once it is operational.

James K. Martin, vice president for development at Dominion Energy, Dominion’s electric generation subsidiary, said:

“Dominion brings a long and successful track record of developing these types of facilities in a manner that provides an asset of genuine regional value. By constructing this facility here, we would address the growing need for additional electric power in the region, while helping Hickman County and Tennessee advance their economic development agendas. We’re in a very fortunate position. Hickman County offers an excellent site with ready access to needed infrastructure in an area already slated for industrial growth.

“We plan to join the business community of Hickman County as a good corporate citizen, sensitive to and fully compliant with federal, state and local environmental needs and regulations. Dominion is proud of its long history of environmental stewardship and community involvement. We intend to continue that tradition here in Tennessee.

“We look forward to working closely with residents to keep the community informed and involved as we work together to bring this promising new economic opportunity to Hickman County.”

Dominion representatives have been meeting with local officials and community residents to inform them of the company’s plans, Martin said. Dominion will host a community workshop on the proposed facility in the next several weeks to seek community input and answer residents’ questions, he said.

If developed, the new power station would be sited on about 100 acres off state Route 50 adjacent to the Universal Fastener facility. Dominion will work with state and local officials to finalize site analysis and start engineering and permitting activities this fall. If built, the company expects to bring the 600-megawatt facility into commercial operation by fall of 2004.

The facility is expected to have a minimal impact on the environment. The project would use two General Electric Model 7FA generation turbines. These machines have a unique combination of efficiency and environmental performance and are acknowledged by industry experts to be the cleanest, quietest turbines available. The turbines would be fueled by natural gas, a clean-burning fuel source with substantially lower emissions than similar coal-fired facilities. Studies measure the sound level of similar facilities at about 65 decibels, or about the same as conversational speech.

The proposed facility would connect to the Tennessee Valley Authority’s 161-kilovolt transmission lines south of the Duck River. The facility would use about 90,000 decatherms of natural gas per day from a nearby Tennessee Gas pipeline. About 4.5 million gallons of water per day would be needed and is expected to be drawn from the Duck River. About one and a half million gallons per day would be treated and returned to the river, and most of the remaining water would be released as water vapor during the combustion process. Initial studies indicate the Duck River has more than enough capacity to supply the facility with no effect on water flow down river.

Dominion’s plans to build the power station are in response to a request by the Tennessee Valley Authority for construction of additional electric generation capacity. TVA notified Dominion in July that the company had made TVA’s short list of potential contract winners. TVA is expected to announce winning bids in October. If selected, Dominion would sell the facility’s generation to TVA under long-term contract.

TVA estimates that the region’s demand for electricity will increase by 1,000 megawatts per year through 2006. One megawatt is equal to 1,000 kilowatts, which is equivalent to about ten thousand 100-watt light bulbs.

Brenda Lee Lindsey, economic and community development director for Hickman County, said:

“We are delighted with today’s news that one of the nation’s premier energy companies is planning to join Hickman County’s corporate community. Dominion’s project would provide significant financial benefit to our local economy with substantial new tax revenue, new jobs, and new contracts for local suppliers – all with minimal impact on our existing infrastructure or the environment. We hope to welcome Dominion to Hickman County.”

Dominion is also planning a 600-megawatt facility in Montgomery County, which, if built, would begin operations in 2004.

Dominion, headquartered in Richmond, Va., is one of the nation’s largest producers of electric power and natural gas and serves 4 million retail customers in five states.