RICHMOND, Va. and VALLEY FORGE, Pa., June 25, 2002 — Dominion and PJM Interconnection, LLC, announced Tuesday the companies have executed an agreement to have Dominion’s 6,000 miles of transmission lines operated on a regional basis by PJM, administrator of the world’s largest competitive, wholesale electricity market.
The memorandum of understanding signed by both companies establishes a process for Dominion to become a member of the PJM regional transmission organization, contingent on certain conditions.
“Dominion’s decision was based on very careful deliberation,” said Edgar M. Roach Jr., president and chief executive officer, Dominion Virginia Power. “Robust, wholesale markets are the foundation of robust retail markets. The established wholesale electricity markets covered by the PJM Interconnection will provide access to a larger competitive market and ensure continued reliability for our customers. PJM is simply the best option for Dominion.”
In making its decision, Dominion considered input from state and federal regulators, wholesale and retail power customers and other interested parties.
Under terms of the agreement, Dominion would establish PJM South, which is similar to the newly established PJM West, and would allow Dominion’s control area to be operated separately under the single PJM energy market. Both parties have 120 days to finalize specifics of the agreement, which states that Dominion’s transmission assets will be fully integrated into the PJM market as soon as possible.
“We are extremely pleased to be working with Dominion,” said Phillip G. Harris, president and chief executive officer-PJM. “The region’s vibrant and robust wholesale energy market will be strengthened with this effort — one that will focus on an integration to a standardized market in a manner that best serves the needs of the public, the individual states and governmental agencies.”
The agreement between Dominion and PJM is subject to approvals by the Federal Energy Regulatory Commission, the Virginia State Corporation Commission and the North Carolina Public Utilities Commission.
Dominion is one of the nation’s largest producers of energy, with a production capability of more than 3 trillion British thermal unit of energy per day. Dominion has a diversified and integrated energy portfolio consisting of nearly 24,000 megawatts of generation, 5.1 trillion cubic feet equivalent of proved natural gas reserves, 7,600 miles of natural gas transmission pipeline and the nation’s largest underground natural gas storage system with more than 950 billion cubic feet of storage capacity. Dominion also serves 3.9 million franchise natural gas and electric customers in five states. In addition, Dominion owns a managing equity interest in Dominion Fiber Ventures LLC, owner of Dominion Telecom. For more information about Dominion, visit the company’s Web site at http://www.dom.com.
PJM, the country’s first fully functioning regional transmission organization, operates the world’s largest competitive wholesale electricity market and North America’s largest power grid. The company currently coordinates a pooled generating capacity of more than 71,600 megawatts and operates a wholesale electricity market with more than 200 market buyers, sellers and traders of electricity. Visit PJM at http://www.pjm.com.