Dominion Virginia Power to invest $2.6bn in transmission from 2013-2017

Dominion Virginia Power plans to invest $2.6bn in electric transmission from 2013 to 2017, according to a March 4 analyst day presentation.

The Dominion Resources (NYSE:D) subsidiary has total planned growth capital expenditures of $4.5bn for the 2013-2017 period.

For the 2007-2012 period, Dominion Virginia Power invested a total of $3.6bn in electric transmission.

By individual year for the 2013-2015 period, Dominion Virginia Power will invest $784m, $733m and $586m, respectively, bringing total capital investments for the three-year period to nearly $2.1bn, according to the company’s 4Q12 earnings presentation Jan. 31.

Dominion Virginia Power has several transmission projects in its development queue, including the Mt. Storm to Doubs 500-kV line, the Surry-Skiffes Creek 500-kV line, the Loudoun to Pleasant View 500-kV line, the Dooms to Bremo Rebuild 230-kV line and the Dooms to Lexington 500-kV Rebuild, according to the company’s 2013 financial outlook.

The company will invest $99m, $47m and $11m in 2013, 2014 and 2015, respectively, in the Mt. Storm to Doubs line; and $52m, $88m and $15m for the three respective years in the Surry-Skiffes Creek 500-kV line, according to the 4Q12 presentation.

Investments in the Loudoun and Dooms-Sherwood-Bremo lines will not continue into 2015. The company will invest $46m and $52m in the Loudoun project in 2013-2014, and $31m and $9m in the Dooms-Sherwood-Bremo project during the same two years.

In the Dooms to Lexington Rebuild, Dominion Virginia Power plans to invest $44m in 2014 and 2015, each.

Other projects the company is working on include the Cloverhill to Liberty transmission line, the Cannon Branch to Cloverhill line and the Fentress to Yadkin line.

In 2012, Dominion Virginia Power placed $400m of new transmission assets into service, and completed Phase 2 of the Mt. Storm to Doubs 500-kV rebuild project.

Dominion has projected 2013 operating earnings guidance of $3.20 to $3.50 per share, with the majority of the growth taking place in 3Q13 and 4Q13. The company projects 5% to 6% of annual earnings growth for the 2013-2017 period.

Mt. Storm to Doubs is a 99-mile, 500-kV transmission line that originates at the Mt. Storm power station in Grand County, W. Va., and terminates at the Doubs substation in Fredrick County, Md. The project is scheduled for completion in 2015. Dominion’s portion of the project is 96.4 miles of line and $350m of the total project cost of $370m, according to TransmissionHub data.

The Loudoun to Pleasant View 500-kV rebuild is required to comply with NERC reliability standards and for increasing line capacity. The project is scheduled for completion in May 2016.

Surry to Skiffes Creek is a 7.7-mile, 500-kV line, which is expected to enter service in the summer of 2015. The project is estimated to cost $56m, according to TransmissionHub data.

The Dooms to Sherwood to Bremo line involves reconductoring 45 miles of 115-kV line to a single-circuit 230-kV line. The project is scheduled to enter service in 2014 and is estimated to cost $64m.

The Dooms to Lexington 500-kV project is a planned upgrade to the existing transmission line that was put in service in 1966. The new 39-mile line has an in-service date of spring 2016 and is estimated to cost $120m.

The Cannon Branch to Cloverhill project is a new 2.3-mile, 230-kV single-circuit transmission line. The cost of the project is estimated to be $23m and construction is scheduled to be complete this fall.

About Rosy Lum 525 Articles
Rosy Lum, Analyst for TransmissionHub, has been covering the U.S. energy industry since 2007. She began her career in energy journalism at SNL Financial, for which she established a New York news desk. She covered topics ranging from energy finance and renewable policies and incentives, to master limited partnerships and ETFs. Thereafter, she honed her energy and utility focus at the Financial Times' dealReporter, where she covered and broke oil and gas and utility mergers and acquisitions.