November 16, 2007
RICHMOND, Va. - Dominion (NYSE:D) announced today a project to offer its customers increased access to new natural gas supplies expected from the Rocky Mountain region.
Under the Dominion Hub III Project, existing firm transportation customers of Dominion Transmission will have the opportunity to move their firm receipt rights to a planned interconnection with the Rockies Express Pipeline at Clarington, Ohio. Customers would retain their existing delivery points to move these supplies to growing Northeast markets.
The Hub III Project is a response to a growing interest in Rockies supplies by customers on the Dominion Transmission system.
"The Dominion advantage is that the Rockies pipeline will interconnect directly with the Dominion Transmission system," said Donald R. Raikes, vice president-Marketing & Customer Services. "Therefore, instead of requiring significant greenfield build, the Hub III Project will maximize the efficient use of existing pipeline infrastructure and have less impact on the environment. The Hub III Project can be in place quickly, with minimal construction, and will bolster the value of Dominion's firm transportation services."
In June of this year, Dominion announced it was the first pipeline to sign firm precedent agreements to move Rockies supplies into east coast markets as part of its Dominion Hub I Project.
The current Hub III Project design would allow approximately 300,000 dekatherms per day of existing firm receipt point entitlements to be transferred to the Clarington Interconnect. Interested shippers with contracted primary receipt point rights south of Valley Gate will have the opportunity to reassign these receipt point rights to the planned Clarington Interconnect. Dominion Hub III participants will continue to have secondary access to all other points on Dominion's postage stamp system, including access to Dominion South Point.
Dominion anticipates charging an incremental reservation surcharge for this receipt point realignment based on the expected cost of the required facilities. The target surcharge is currently a unit rate of $0.06 per dekatherm. Rates for this service will be based on the level of market participation and the final design of the project's facilities.
"The Hub III Project is a win/win proposal for both Dominion customers and Rockies producers," Raikes said. "For current customers, the project will provide access to an important source of incremental gas supplies from the growing Rockies basin. For the Rockies producers, the Dominion Hub III Project will provide access to major liquid Northeast markets as well as to the nation's largest gas storage network."
For additional information, customers can contact Jeff Keister, at (804) 819-2820.
Dominion is one of the nation's largest producers and transporters of energy, with a portfolio of approximately 26,500 megawatts of generation, 7,800 miles of natural gas transmission pipeline and 1 trillion cubic feet equivalent (Tcfe) of proved natural gas and oil reserves. Dominion also owns and operates the nation's largest underground natural gas storage system with about 960 billion cubic feet of storage capacity and serves retail energy customers in 11 states. For more information about Dominion, visit the company's Web site at http://www.dom.com.
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Dan Donovan, (412) 690-1370, or (412) 951-1080