A business unit of Dominion Resources, Inc. D, Dominion Virginia Power, has received the consent of the Supreme Court of Virginia on State Corporation Commission's (“SCC”) approval of the construction of a transmission line. The SCC had approved the project in Nov 2013.
The proposed 500-kilovolt transmission line will stretch over the James River from Surry to James City County. To finally begin construction, Dominion requires the approval of the U.S. Army Corp of Engineers.
This “critical infrastructure” has come across resistance from local residents, environmental groups and those keen on preserving historical sites. They opine that the transmission line over the James River, where the first English settlers sailed more than 400 years ago, will be a blot on the horizon.
Dominion, on the other hand, deems that there is a pressing need for energy in the Peninsula region. The company had initially embarked upon the transmission project owing to the shutting down of the Yorktown Power Station coal-fired units 1 and 2. Two coal-fired and one oil-based generating plant are still in service at Yorktown Power Station.
Environmental Protection Agency regulations for curtailing carbon emissions have led Dominion to shut down its two coal fired units. However, the company decided to hang on with three remaining units for meeting additional load during peak season.
With the uncertainties and condemnation surrounding the project, it still is a matter of question whether Dominion will be able to begin construction. The supreme court ruling is nonetheless encouraging.
Apart from closing coal-fired plants, the utility is also striving to boost its renewable assets. Recently, Dominion Resources announced that it has acquired the Richland Solar Center in Georgia from HelioSage Energy. The 20-megawatt facility is expected to come online by this year.
Located in Twiggs County, near Jeffersonville, GA, this solar facility has secured a 20-year power purchase agreement and interconnection agreements with Georgia Power. Along with this, an engineering, procurement and construction contract has also been signed. The Richland Solar Center is expected to be eligible for the federal Investment Tax Credit (read: Dominion Resources Acquires a Solar Facility in Georgia).
Zacks Rank
Dominion Resources currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the electric utility space are Abengoa Yield plc ABY, Alliant Energy Corporation LNT and Atlantic Power Corporation AT. All three stocks currently have a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment