Dominion Encouraged by SCC Staff Report on Meadow Brook-to-Loudoun Transmission Line

Dominion Encouraged by SCC Staff Report on Meadow Brook-to-Loudoun
Transmission Line
- Consultants hired by SCC staff identify need for power system improvements

RICHMOND, Va., Jan. 9 /PRNewswire-FirstCall/ -- Dominion Virginia Power is
encouraged that consultants hired by the Virginia State Corporation Commission
staff agree that a critical need exists for electric reliability improvements
by 2011 in Northern Virginia and recommends the proposed route for a
transmission line that would meet that need with least impact to the
environment, cultural and historic resources.
"The studies undertaken by the commission staff show a need to increase
the reliability of electricity in Northern Virginia," said John D. Smatlak,
vice president-Electric Transmission. "The explosive growth in demand for
electricity in Northern Virginia over the last decade and projected for the
future has placed Dominion Virginia Power's ability to provide reliable,
affordable electricity for the region's growing economy increasingly at risk.
Our proposed route resolves this risk and maintains the reliability of
electricity for Northern Virginia."
Dominion is seeking approval from the SCC to build a 65-mile, 500,000-volt
transmission line from the Meadow Brook substation in Frederick County to the
Loudoun substation in Loudoun County. The SCC held four rounds of local
hearings last summer, will convene another public hearing in Richmond on
Monday and an evidentiary hearing in Richmond on Feb. 25. Following a hearing
examiner's report, the SCC is expected to decide later this year.
The SCC staff hired two consultants to review Dominion's application. One
consultant assessed the need for the project while the other compared the
environmental, historical and cultural impacts of the proposed and alternate
routes.
In their reports, the consultants said:

-- "The results of the ... study indicate that without the proposed
(Meadow Brook-to-) Loudoun Line, (federal) and (Dominion Virginia
Power) reliability criteria cannot be met in either 2011 or 2016. In
other words, there is a need to improve the existing power system to
reliably serve the expected demand growth in both 2011 and 2016."

-- "(Dominion's) proposed Loudoun Line would fully resolve the expected
reliability issues in 2011."

-- "Based upon our review of the application, the testimony of
participants in the cases, aerial and ground reconnaissance and
independent study, we believe that the Proposed Route would be the
least impacting to the Commonwealth."

-- "In conclusion, based upon our study, we recommend that the Proposed
Route be selected for the Meadow Brook Transmission line."

The SCC staff consultant also said it considered the "ramp-up time ... as
limiting the feasibility of (energy efficiency) programs to defer the 2011
need for the proposed line." It further said that "without the proposed
Loudoun line ... in service by 2011, contingency overloads at various 500kV
transmission lines are expected to occur even if 4,000 megawatts of
(generation) is added to the existing system."
"While we support and promote efficient energy use by all of our
customers, even the most aggressive conservation efforts will not compensate
for the obvious need to build this line," Smatlak said, adding that Dominion's
studies also showed that additional generation would not solve the
transmission reliability problem.
"Dominion is committed to providing reliable, affordable service to its
customers now and in the future. This transmission line is essential to
Dominion's ability to maintain system reliability and support future growth in
Northern Virginia," he said.
Dominion is one of the nation's largest producers of energy, with a
portfolio of approximately 26,500 megawatts of generation. Dominion serves
retail energy customers in 11 states. For more information about Dominion,
visit the company's Web site at http://www.dom.com .
SOURCE Dominion Virginia Power

Jim Norvelle of Dominion Virginia Power, +1-804-771-6115,
Jim.Norvelle@dom.com