Dominion Resources, CNG Enter Agreement to Develop Power Generation Along CNG Pipeline System.RICHMOND, Va. and PITTSBURGH--(BUSINESS WIRE)--April 14, 1999-- Dominion Resources Dominion NYSE: D (formerly Dominion Resources) is a power and energy company headquartered in Richmond, Virginia, USA, that supplies electricity, natural gas, or other energy services to homes in Virginia, West Virginia, Ohio, Pennsylvania, and eastern North Carolina. Inc. (NYSE NYSE See: New York Stock Exchange : D) and a subsidiary of Consolidated Natural Gas Company (NYSE: CNG CNG Compressed Natural Gas CNG Calling (Tone) CNG Comfort Noise Generation CNG Cryptography Next Generation (Microsoft Windows Vista) CNG Centre National de Génotypage ) today announced that they have signed an agreement to develop natural gas-fired power generation facilities along CNG's natural gas pipeline system. Under terms of an exclusive interim alliance agreement signed today, Dominion Resources and CNG power company will identify and evaluate potential sites for development of facilities along CNG's natural gas pipeline network in Ohio, Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. and Virginia. Dominion Resources and CNG affiliates will develop, own, operate and maintain the facilities on a 50-50 ownership basis. At present, the companies have identified 45 potential development sites, a number the alliance expects to broaden. Negotiations are under way with major turbine turbine, rotary engine that uses a continuous stream of fluid (gas or liquid) to turn a shaft that can drive machinery. A water, or hydraulic, turbine is used to drive electric generators in hydroelectric power stations. manufacturers for pricing and delivery of 10 turbines over a period of the next two to three years. Letters of intent and memoranda of understanding with the selected manufacturers are expected to be signed this month. Power generated by the facilities will be marketed by The Wholesale Power Group of Dominion Resources. The group nearly tripled its wholesale megawatt-hour sales in 1998 compared to 1997, increasing volume from about 20 million megawatt-hours to more than 60 million megawatt-hours. The Wholesale Power Group is increasingly active in natural gas wholesale trading and is now marketing a portion of CNG production. In a joint statement, Thos. E. Capps, Dominion Resources chairman, president and chief executive officer, and George A. Davidson Jr., CNG chairman and chief executive officer, said: "This alliance agreement continues the momentum created by the announcement of the planned merger of our two companies. It is a first step in combining Dominion dominion, power to rule, or that which is subject to rule. Before 1949 the term was used officially to describe the self-governing countries of the Commonwealth of Nations—e.g., Canada, Australia, or India. Resources' and CNG's complementary asset bases and skills sets in electric power and natural gas to enhance value across the energy production chain. Successful execution of this alliance agreement will further position us to efficiently serve the growing energy needs across a region that accounts for 40 percent of the nation's energy demand." In February, Dominion Resources, based in Richmond, Va., and CNG, based in Pittsburgh, signed a $25 billion merger agreement to create the nation's fourth largest electric and natural gas company. The merger is expected to be completed later this year or early next year. |
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