News Release from Dominion

Dominion News

Dominion Virginia Power Offshore Wind Study Recommends Ocean Substations Be Added in Atlantic

Mar 13, 2012

RICHMOND, Va., March 13, 2012 /PRNewswire/ -- One offshore substation platform with two 230,000-volt power lines is appropriate to transmit to shore every 500-700 megawatts of wind-generated electricity constructed off the coast of Virginia, a study done at Dominion Virginia Power's request recommends.

The report, completed by ABB Power Systems Consulting, evaluated the offshore transmission options to support future projects and built its recommendations on the company's first study in 2010 that looked at potential on-shore interconnection options and upgrades needed to support offshore wind generation projects. The studies complement one another as transmission lines from the four recommended offshore service platforms would likely be routed to two separate onshore interconnection points.

The report acknowledges the potential cost savings that may be achieved through construction of offshore transmission infrastructure completed in stages with a potential for standardization. The approach also limits the potential for stranded transmission investment as offshore wind farms are constructed.

The report estimated the cost for each offshore service platform, its equipment and submarine transmission cables at approximately $652 million.

"As public policy is developed to support wind farms off Virginia's coast and leases are issued, Dominion will continue evaluating transmission options to ensure the identification of the lowest cost alternative for bringing offshore wind electricity to customers," said Scot Hathaway, vice president-Electric Transmission.  "It is important that we continue to understand these costs and work to reduce them as we consider the possibility of offshore wind generation."

Dominion is planning to respond to the federal Bureau of Ocean Energy Management's call for information for wind generation in about 113,000 acres of leasing areas approximately 24 miles off the Virginia coast. The leasing area is divided into 19 whole blocks, each 3-by-3 miles, and 13 partial ones.

Dominion has a $500,000 grant from the U.S. Department of Energy to work with partners and find ways to reduce the costs of offshore wind generation. The DOE estimates that offshore wind generation alone would cost about 24 cents per kilowatt-hour; Dominion's residential rates today for generation, transmission and distribution services are about 11 cents per kilowatt-hour.

To read the report, please visithttp://www.dom.com/news/2012/pdf/dominion_offshore_public_report_3-13-2012.pdf.

Dominion is one of the nation's largest producers and transporters of energy, with a portfolio of approximately 28,000 megawatts of generation, 11,000 miles of natural gas transmission, gathering and storage pipeline and 6,300 miles of electric transmission lines. Dominion operates the nation's largest natural gas storage system with 947 billion cubic feet of storage capacity and serves retail energy customers in 15 states. For more information about Dominion, visit the company's website at www.dom.com.

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SOURCE Dominion

B&V to Provide Detailed Design for Busch Ranch Wind Project

News release from Black & Veatch:

Black & Veatch to Provide Comprehensive Detailed Design Work for Busch Ranch Wind Project

OVERLAND PARK, KAN. (8 February 2012) – Black & Veatch has been selected by Black Hills Energy - Colorado Electric to provide detailed design engineering services for the Busch Ranch Wind Project located south of Pueblo, Colo. The project represents Black Hills Energy’s first wind development in the state of Colorado and will be a significant component of the company’s plan to comply with the Colorado Renewable Energy Standard of 30 percent by 2020. Black Hills Energy is a subsidiary of Black Hills Corp. (NYSE: BKH).

“The Busch Ranch Wind Project is an important step in our multi-phased approach to reach the renewable energy standard in Colorado,” said Christopher Burke, vice president of Colorado Utility operations.  “The high-quality services provided by Black & Veatch will enhance the value we are able to deliver to our customers from this project before, during and after its construction.”

The Busch Ranch Wind Project will use 16 wind turbines to produce 29 megawatts (MW) of renewable wind power. Black & Veatch is also providing the detailed design for the project’s collection and interconnect substations.

“Black & Veatch is utilizing its extensive technical capabilities to provide the detailed engineering design for the Busch Ranch Wind Project,” said Ed Walsh, Executive Vice President of Black & Veatch’s global energy business. “With design elements including generation, collection and interconnection, this project demonstrates how Black & Veatch is uniquely positioned to help our clients bring new renewable energy stations online.”

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Editor’s Notes:

• Upon completion in December 2012, the Busch Ranch Wind Project will produce enough electricity to supply approximately 15,000 homes.
• The 16-turbine Busch Ranch Wind Project will generate 29 megawatts of renewable energy and will be sited 35 miles south of Pueblo, Co.
• Black & Veatch is providing the detailed design for all three project components including turbine placement and foundation support, collection and interconnection.