A Dominion Resources Inc. (D) subsidiary, Dominion Virginia Power, said that it has started operations at its 580-megawatt Bear Garden Power Station in central Virginia. Dominion said the facility will generate electricity to meet Virginia's growing demand for energy with environmentally clean natural gas.
The Bear Garden Power Station is a combined-cycle power station located about 60 miles west of Richmond in Buckingham County. The station features two combustion turbine units fired by natural gas with oil as a backup fuel source.
Each of the combustion turbines generates 170 megawatts of electricity. Superheated exhaust from the turbines is used to generate steam that spins another turbine, producing an additional 240 megawatts.
The $619-million station received approval from the Virginia State Corporation in March 2009 and construction began a month later. The facility, which was built on budget and on schedule, is capable of producing sufficient electricity to power 146,000 homes. The company expects the facility to have 24 permanent jobs and provide more than $1 million annually in taxes to Buckingham County.
Bear Garden is expected to reduce the amount of electricity that is brought into Virginia, which is second only to California among the states requiring to import electricity.
Bear Garden forms a part of Dominion’s 'Powering Virginia' strategy and represents an important milestone for the company. The "Powering Virginia" strategy is designed to ensure continuation of reliable service to Dominion's 2.3 million Virginia electric customers while meeting projected demand growth of 4,500 megawatts by 2021.
The strategy includes adding a mix of new generation sources and energy efficiency programs, and upgrading and expanding the transmission and distribution network to minimize fuel expenses while improving reliability. The Bear Garden project is one of the several planned additions the company has made to its generating fleet as part its strategy for Virginia.
Based in Richmond, Virginia, Dominion Resources, together with its subsidiaries, engages in producing and transporting energy in the United States. Dominion’s key strategy is to be a leading provider of electricity, natural gas and related services to customers, primarily in the eastern region of the U.S. In an effort to make its mark, Dominion is primarily focused on expanding its regulated electric generation, electric and natural gas transmission infrastructure within and around its existing footprint.
We believe that the company’s strong fundamentals and diverse range of businesses will continue to drive earnings growth going forward. Furthermore, Dominion is expected to benefit from the potential carbon legislation given its nuclear heavy merchant asset base.
Dominion Resources currently retains a Zacks #4 Rank (short-term Sell rating). However, we maintain a Neutral rating on the stock. The company competes with American Electric Power Co. (AEP) and Nisource Inc. (NI).
AMER ELEC PWR (AEP): Free Stock Analysis Report
DOMINION RES VA (D): Free Stock Analysis Report
Be the first to comment