Governor s Energy Conference October 13, Greg Workman Director, Fuels Dominion Generation

Transcription

1 Governor s Energy Conference October 13, 2010 Greg Workman Director, Fuels Dominion Generation

2 Fuel Diversity: A Key to Affordable Energy, Environmental Protection Diversity promotes reliability, affordability, responsibility, which in turn support energy security Better chance for price stability Less vulnerability to supply interruptions Environmental benefits

3 Dominion: Fuel Diversity with Balance 2009 Electric Production by Fuel* *Total production by regulated and merchant units. Excludes non-utility generation (NUG) under contract.

4 Dominion Price Stability A diverse fuel mix has contributed to stable rates for Dominion customers CPI vs. Regular Gasoline vs. Dominion Virginia Power Residential Monthly Bill July 1993 July 2010 Index (CPI) Power * Coal * DVP rate effective July 2010, includes interim fuel rate decrease in effect on July 1, DVP base rates have not increased since Natural Gas Hydro Nuclear Sources: Consumer Price Index: U.S. Bureau of Labor Statistics, July 1993 to July Dominion Virginia Power: Rates in effect from July 1993 to July 2010, Summer Rates, Residential, 1,000 kwh, Monthly. Regular gasoline per-gallon prices, Energy Information Administration, July 5, 1993-July 5, 2010 data. Oil Wind

5 Dominion Coal Diversification Coal Allocation by Source Coal Allocation by Transportation Import 20% Western Rail 23% Rail & Vessel 24% CAPP 39% PRB 23% Truck & Rail 17% NAPP 18% Eastern Rail 34% Truck 2% Total: ~ 24 million short tons 5

6 Market Options, Geographic Diversification DVP Coal stations MISO PJM NYPP NE-ISO Chesterfield 1303 mw Mt Storm 1634 mw Clover 919 mw Chesapeake 609 mw Bremo 244 mw Yorktown 349 mw Mecklenburg 152 mw Small units 225 mw 6

7 Virginia Enacted Legislation in 2004 & 2007 To Provide Incentives for New Coal Plants To ensure electric energy reliability and promote economic development, an investor-owned utility may petition the SCC for approval. Locating a power station in Virginia s coalfield region that burns Virginia coal is in the public interest. Allows recovery of construction and associated infrastructure costs with enhanced rate of return. Assured recovery through rates reduces investor risk.

8 Virginia City Hybrid Energy Center (VCHEC): Promoting Economic Development Use of brown-field site and air-cooling helped make facility possible. Location in southwest Virginia coalfields enhances use of Virginia coal. Each new coal mining job is an economic multiplier in Virginia s economy. Assures reliable, affordable energy to sustain state s economic growth.

9 VCHEC - Economic Impacts Independent study by Virginia Tech projects an economic impact of more than $439 million annually. Adds nearly $6 million in tax revenue each year. Permanent employment of at least 75 plant operators - Annual payroll of over $4 million new jobs during construction. Creates an additional 350 local mining jobs.

10 Virginia City Hybrid Energy Center: Commitment to Environment Permit Conditions (in addition to stringent control of SOX, NOX and Mercury) include: At least 5 percent biomass after 3 years of operation, up to 20%. Bremo conversion to natural gas. Acknowledgement that Dominion is committed to install carbon capture and sequestration technologies at VCHEC as soon as they become commercially available.

11 Va. Tech 1000 Ton Injection Test Well, Russell County, Va. 11

12 Virginia City Location and CBM Wells (potential CO2 injection) Sites Plant less than 7miles from nearest significant CBM field and 2.5 miles from the nearest CBM well Dominion costshared with U.S. DOE testing of carbon dioxide storage in coal seams. Results show that this is a feasible means of managing carbon dioxide from coal combustion in central Appalachia.

13 Dominion Emissions Reductions Actual Emissions Projected Emissions

14 Continuing Fuel Diversity: Coal is Vital Will be mainstay of U.S. power generation for decades. Abundant supplies, relatively stable prices. Clean coal technologies emerging, but remains high carbon source. Faces increasingly complex regulatory approval process. Major capital costs, especially with CCS. Virginia City Hybrid Energy Center, Wise County, VA

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