RICHMOND, Va., Nov. 17, 2015 /PRNewswire/ -- Investments by
Dominion over the next six years for projects to strengthen
Virginia's energy infrastructure and meet environmental goals will
create thousands of jobs and inject $10.1
billion into the state's economy, according to a new study
by Chmura Economic & Analytics available here:
https://www.dom.com/library/domcom/pdfs/dom-cap-ex.pdf
"Our growing commonwealth requires an expanding and reliable
energy infrastructure," said Paul
Koonce, CEO of Dominion's Energy Infrastructure Group and
President of Dominion Virginia
Power. "Our capital investment program over the next six
years is designed to meet that need and achieve environmental goals
related to the federal Clean Power Plan. We are very pleased that
in doing so it will create a huge economic and jobs impact in
Virginia."
Gov. Terry McAuliffe, commenting
on the study's findings, said: "In order to build the new Virginia
economy, we must have low-cost, diverse and reliable energy
resources. These investments not only build upon an already solid
foundation for future economic growth in Virginia, they also create tens of thousands
of jobs and produce billions of dollars in capital that benefit the
Commonwealth today."
David A. Christian, CEO of the
Dominion Generation Group, said: "Strong, reliable and efficient
electric generation projects are good for our customers as we bring
these new facilities on-line. They are also creating well-paying
construction jobs and giving a much-needed boost to local
jurisdictions with increased tax revenue."
Added Barry DuVal, President and
CEO of the Virginia Chamber of Commerce: "Clean, affordable,
reliable energy is key to supporting Virginia's economic
development needs while also meeting the growing needs of our
population. This study confirms that Dominion's planned energy
infrastructure investments will also have a significant direct
impact in creating jobs and attracting and retaining Virginia
businesses for years to come."
The study, commissioned by Dominion, looked at the total
economic impact in Virginia from
the company's capital expenditures for new electric and natural gas
infrastructure projects from 2015 through 2020. Among the
findings:
- Construction of the projects will produce economic activity of
almost $10.1 billion in Virginia during the six-year period. This
includes more than $5.7 billion in
direct construction expenditures by the company, plus almost
$4.4 billion in additional economic
activity as the effects of the construction spending spread
throughout the Virginia economy, including the retail and services
sectors.
- From 2015-2020, the construction program will support an
average of more than 11,900 jobs per year in Virginia, with about 6,400 directly engaged in
the construction work and another 5,500 employed in other sectors
of the state's economy.
The study analyzed projects to be built by Dominion Virginia
Power, the Dominion business unit providing electric service to
more than 2.4 million retail customers in the state, and by
Dominion Transmission, the Dominion subsidiary that constructs and
operates natural gas storage facilities and interstate transmission
pipelines.
Among the projects included in the study were two
state-of-the-art natural gas-fired power stations using energy
efficient technology; solar and off-shore wind electric generation
facilities; multiple electric transmission lines; environmental
projects; and the proposed Strategic Underground Program to improve
reliability by converting many overhead electric distribution lines
to underground installation.
Also included is the Virginia portion of the proposed Atlantic
Coast Pipeline, a 564-mile project originating in West Virginia's Harrison County then traversing parts of
western, central and southern Virginia. Dominion Transmission will
construct and operate the project for the Atlantic Coast Pipeline
LLC, which was formed by four southeastern energy companies
Dominion, Duke Energy, Piedmont Natural Gas, and AGL Resources,
parent of Virginia Natural Gas. Atlantic Coast Pipeline LLC filed
an application for approval of the project with the Federal Energy
Regulatory Commission in September. About 280 miles of the proposed
pipeline would be located in Virginia.
Chmura, a respected economics consulting firm based in
Richmond, used a sophisticated
computer modeling system to calculate the economic and job impacts
from the construction projects.
The study found that the construction program would inject an
average of about $1.68 billion into
the Virginia economy during each year of the six-year period, with
more than half — or about $957
million — resulting directly from construction spending. The
rest would come from growth in other sectors of the economy as the
effects of the spending spread.
The report also found that the construction program would
support more than 71,500 cumulative jobs during the six years
surveyed. "Cumulative jobs" refer to the number of full-time
positions supported for one year. Thus, one worker employed for six
years is equivalent to six cumulative jobs. On an annual basis, the
construction program will support an average of more than 11,900
jobs per year during the 2015-2020 period.
The Chmura report also assessed the impact of the projects on
the Virginia economy once they go into operation. The study found
that, beginning in 2021, operation of the facilities would produce
an average of about $212 million in
additional economic activity each year in the state. More than half
of these benefits — $146 million —
will result from direct spending by Dominion to support the
facilities' operations.
About Dominion
Dominion (NYSE: D) is one of the
nation's largest producers and transporters of energy, with a
portfolio of approximately 24,400 megawatts of generation, 12,200
miles of natural gas transmission, gathering and storage pipeline,
and 6,490 miles of electric transmission lines. Dominion
operates one of the nation's largest natural gas storage systems
with 928 billion cubic feet of storage capacity and serves utility
and retail energy customers in 14 states. For more information
about Dominion, visit the company's website at www.dom.com
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SOURCE Dominion; Dominion Virginia Power