Dominion seeks FERC approval for pipeline project to serve CPV power plant

Dominion Cove Point LNG LP (DCP) applied Dec. 3 with the Federal Energy Regulatory Commission for approval of a gas pipeline capacity project to serve the St. Charles power plant of Competitive Power Ventures, with that power plant having just gone into construction.

Dominion told FERC that it wants to commence construction of the gas pipeline facilities in September 2015 in order to meet an in-service date of June 1, 2016, for service to the power plant. The pipeline facilites would be located in Fairfax County, Virginia, and Charles County, Maryland, which is where the power plant is being built. The “St. Charles Transportation Project” will provide 132,000 dekatherms per day (Dt/d) of incremental firm transportation service to CPV Maryland LLC, the Competitive Power Ventures affiliate building the 725-MW power plant.

DCP owns the Cove Point LNG Terminal, as well as an 88-mile gas pipeline system (Cove Point Pipeline) connecting the LNG Terminal on the Chesapeake Bay in Maryland to the interstate pipeline grid. DCP also owns two compressor stations: the Pleasant Valley Compressor Station located in Fairfax County, Virginia, and the Loudoun Compressor Station located in Loudoun County, Virginia. DCP is an indirect subsidiary of Dominion Resources (NYSE: D).

DCP is proposing the pipeline project in response to CPV’s request for incremental pipeline capacity for its proposed St. Charles Energy Center. DCP is proposing to add additional electric compression at its existing Pleasant Valley Compressor Station in Fairfax County and install two new pipeline taps in Charles County, which is across the Potomac River from Fairfax County. The estimated total cost for DCP’s construction of the project is $30.6m.

“The Customer will receive firm transportation service under the terms of DCP’s existing Rate Schedule FTS, for a Maximum Firm Transportation Quantity (MFTQ) of 132,000 Dt/d,” said Dominion. “Therefore, the Project capabilities are fully subscribed. The proposed commencement date for the firm transportation service is June 1,2016. The full 132,000 Dt/d is for a primary term of twenty years. The primary receipt point will be at DCP’s Pleasant Valley Compressor Station and the primary delivery point will be at an interconnection between DCP and the Customer in Charles County, Maryland at the CPV Maryland Interconnect.”

Competitive Power Ventures and partners Marubeni Corp. and Toyota Tsusho broke ground Dec. 2 on the $775m, 725-MW CPV St. Charles Energy Center. Located 25 miles southeast of Washington DC, this is a state-of-the-art combined-cycle natural gas-fired facility using two reliable, highly efficient General Electric 7F.05 Gas Turbines and a GE D402 steam turbine. The project will be constructed by SNC Lavalin Constructors Inc. and operated by EthosEnergy Power Plant Services LLC.

The project will sell its capacity, energy and ancillary services into the transmission-constrained Southwest Mid-Atlantic Area Council zone of the PJM Interconnection market. The benefits of a reliable water supply for efficient wet cooling, as well as the site’s proximity to Potomac Electric Power 230-kV transmission lines and the Dominion Cove Point natural gas pipeline, make this one of the most cost competitive projects in PJM, the partners said.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.