Midwest ISO Concludes That Closing Of Kewaunee Power Station Will Not Affect Regional Electric Reliability

Tue Feb 19, 2013 12:57pm EST

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- Dominion plans to proceed with shutdown of single-unit nuclear power station
in second quarter
RICHMOND, Va.,  Feb. 19, 2013  /PRNewswire/ -- Dominion (NYSE: D) announced
today that the Midwest Independent System Operator (MISO) has concluded the
shutdown and retirement of Kewaunee Power Station in northeastern  Wisconsin 
will not affect the reliability of the regional electric transmission system.

Dominion will proceed with its plans to close the 556-megawatt, single unit
nuclear power station in Carlton, Wisc., in the second quarter of 2013, as the
company announced last fall.

"After being reviewed for power system reliability impacts, the retirement of 
Kewaunee  would not result in violations of applicable reliability criteria.
Therefore,  Kewaunee  may retire immediately," MISO wrote in its letter to
Dominion.

Dominion was unable to find a buyer for  Kewaunee  after it put the station up
for sale in  April 2011. The decision to sell  Kewaunee  was part of a regular
review of the company's portfolio of assets to determine which assets fit
strategically and support its objectives to improve return on invested capital
and shareholder value. The company also was unable to grow its nuclear fleet in
the Midwest to take advantage of economies of scale. In addition,  Kewaunee's
power purchase agreements are ending at a time of projected low wholesale
electricity prices in the region.

Thomas F. Farrell II, Dominion chairman, president and chief executive officer,
said, "I want to reiterate that the employees of  Kewaunee  have been doing an
outstanding job, and the decision to close the station is in no way a reflection
on them. They have my thanks and gratitude. The company is working to make the
transition as smooth as possible for them and their communities."

Farrell also said the company's top priority will be a continued focus on safety
during the station's last weeks of operations and during decommissioning.

"We intend to take all steps necessary to ensure the protection of the public,
employees and the environment. The station will have the resources it needs," he
said.

The station will remain under the oversight of the Nuclear Regulatory Commission
(NRC) throughout the shutdown and decommissioning process.  

Following shutdown, Dominion plans to meet its obligations to the two utilities
that purchase  Kewaunee's generation through market purchases until the power
purchase agreements expire in  December 2013.

Kewaunee Power Station, located on  Lake Michigan  about 35 miles southeast of 
Green Bay, began commercial operation in 1974. It has one Westinghouse
pressurized water reactor. Dominion acquired the station in  July 2005. In 
February 2011, the NRC renewed the station's operating license for an additional
20 years, until 2033.  

Dominion is one of the nation's largest producers and transporters of energy,
with a portfolio of approximately 27,400 megawatts of generation, 11,000 miles
of natural gas transmission, gathering and storage pipeline and 6,300 miles of
electric transmission lines.  Dominion operates the nation's largest natural gas
storage system with 947 billion cubic feet of storage capacity and serves retail
energy customers in 15 states. For more information about Dominion, visit the
company's website at  www.dom.com.  



SOURCE  Dominion


Media: Mark Kanz, +1-920-304-1927, mark.e.kanz@dom.com, or Jim Norvelle,
+1-804-771-6115, jim.norvelle@dom.com; Analysts: Nathan Frost, +1-804-819-2187,
nathan.j.frost@dom.com

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