Printer Friendly

VIRGINIA POWER FORESEES LOWER GROWTH, DELAYS UNITS

 VIRGINIA POWER FORESEES LOWER GROWTH, DELAYS UNITS
 RICHMOND, Va., March 5 /PRNewswire/ -- Slower economic growth,


increased conservation efforts and a new purchase power arrangement will reduce Virginia Power's need to build new generating units to meet future demand, the utility's latest long-range forecast indicates.
 As a result of the findings, Virginia Power has postponed constriction and operation of a 400-megawatt, coal-fired power station planned for Virginia's Southside region. The need for that unit has now been delayed at least until 2001. The company has also delayed additional combustion turbine units originally planned for 1995 and 1996 to provide 918 megawatts of electricity during periods of high demand.
 "The slow economy, nationally and in Virginia, is having a definite impact on our projections for future electricity demand," said Larry W. Ellis, senior vice president-Power Operations and Planning. "The economic slowdown, however, will not affect our need for the Clover station currently under construction in Halifax County.
 The company last year predicted the summer peak demand for electricity would reach 16,494 megawatts by the year 2000; the revised long-range plan revised that figure to 15,093 megawatts, a demand 3.6 percent less than projected last year.
 In addition to economic factors, intensified efforts by Virginia Power to conserve electricity and manage the demand for it will reduce the need for new capacity. The company's new long-range plan calls for a 70 percent expansion of its conservation and load management efforts. The programs are expected to reduce the summer peak demand for electricity by 735 megawatts in the year 2000. A conservation plan adopted by the company last year was projected to reduce the summer peak demand in 2000 by 436 megawatts.
 The company's total demand-control effort eliminates the need for almost 900 megawatts of new capacity that would otherwise be built by the end of this decade to meet peak demand. The new plan calls for expansion of several existing programs, including air conditioner controls, special commercial and industrial rates tied to the daily demand for energy, reduced energy prices for industries that use their own generators on high-demand days, and certification of energy- efficient buildings.
 "Our company has a longstanding commitment to cost-effective demand- side measures that do not force up nonparticipants' electric rates," Ellis said. "We carefully examine all our options for meeting the growing demand for electricity, and our efforts are aimed at finding the best alternatives for the company and our customers."
 An agreement with Allegheny Power System Inc. should also reduce Virginia Power's need for new capacity. Beginning in 1993, Allegheny will supply Virginia Power with 200 megawatts of electricity during the summer months. In exchange, Virginia Power will provide Allegheny with 200 megawatts during the winter months. The exchanges are expected to increase to 300 megawatts in 1996. Virginia Power experiences peak demand during the summer, Allegheny during the winter.
 The coal-fired unit planned for the Southside region was originally scheduled to begin operation in 1997; in June 1991 Virginia Power said it would be postponed at least for a year. Sites in Cumberland and Mecklenburg counties are being evaluated for the $640 million station. Sites for the combustion turbine units have not been selected.
 -0- 3/5/92
 /CONTACT: William H. Byrd of Virginia Power, 804-771-6115/ CO: Virginia Power ST: Virginia IN: UTI SU:


SM-AH -- NY060 -- 5556 03/05/92 15:06 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 5, 1992
Words:560
Previous Article:TEXACO TO ACQUIRE HART CHEMICAL FROM NATIONAL STARCH AND CHEMICAL
Next Article:CALPERS AND USA REACH AGREEMENT WITH RYDER ON CORPORATE GOVERNANCE ACTIONS
Topics:


Related Articles
VIRGINIA ELECTRIC $200 MILLION MEDIUM-TERM NOTES RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
VIRGINIA ELECTRIC FIRST AND REFUNDING MORTGAGE BONDS RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
CHESTERFIELD 8 BEGINS SERVING VIRGINIA POWER CUSTOMERS
VIRGINIA POWER CUTS COSTS, MAINTAINS STRONG OPERATIONS
VIRGINIA ELECTRIC AND POWER COMPANY $100 MILLION FIRST AND REFUNDING MORTGAGE BONDS RATED 'A+'; $40 MILLION PREFERRED STOCK RATED 'A'
CONSERVATION, SLOW GROWTH DELAY VIRGINIA POWER'S NEED FOR NEW UNITS
VIRGINIA ELECTRIC $200 MILLION SENIOR DEBT RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --
CHESAPEAKE PAPER PRODUCTS COMPANY SIGNS INITIAL REAL TIME PRICING CONTRACT WITH VIRGINIA POWER
VIRGINIA POWER SETS SUMMER DEMAND RECORDS
DUPONT SIGNS REAL TIME PRICING CONTRACT WITH VIRGINIA POWER

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters