 
|
|||||||||
              
|
CNG, Dominion to develop power plants
Friday, April 16, 1999 By Ken Zapinski, Post-Gazette Staff Writer
Even before they finish their walk down the aisle, Consolidated Natural Gas Co. andDominion Resources Inc. are snuggling up together.
The companies said they have signed an agreement to develop a series of natural-gas powered electric generating plants along CNG's pipeline system in Pennsylvania, Ohio, West Virginia, Virginia and New York. Construction of the plants is considered key to Dominion's plan to absorb CNG in a $6.3 billion deal announced in February.
Dominion plans to use the new plants to generate power it can sell to retail or wholesale customers.
"It gives us the chance to get up every morning and say, what's the most profitable thing to do with that gas? Is it to sell it? Is it to store it? Or is it to make electricity?" Dominion Chairman Thomas E. Capps said when the deal was announced. The companies operate in Pennsylvania and other states that are among the furthest along in letting customers shop around for their electric supplier.
The companies have selected 45 potential developments and they intend to purchase 10 electric turbines over the next two to three years to complete the plants.
The power will be marketed by Dominion's Wholesale Power Group, which last year sold more than 60 million megawatt-hours of electricity to utilities and others. The Wholesale Power Group is also becoming increasingly active in trading natural gas and is currently marketing a portion of CNG's production.
|
||||||||
