Dominion CEO: $327m of transmission assets placed in service through first half of 2017

Dominion Energy (NYSE:D) Chairman, President, and CEO Thomas Farrell II on Aug. 2 said that the company has a number of electric transmission projects at various stages of regulatory approval and construction, and that through the first half of 2017, $327m of assets have been placed into service.

“We plan to invest $800m in our electric transmission business this year and every year thereafter for at least the next decade,” he said during the company’s 2Q17 earnings call.

A company spokesperson on Aug. 3 told TransmissionHub that these Dominion Energy Virginia projects were completed in May and June, and comprise about 40% of the $327m that Farrell mentioned during the call:

  • Line #553 (Cunningham-Elmont) Rebuild Phase 1 – Richmond, Va., area
  • Eastern STATCOM – Virginia Beach, Va.
  • Colington – R/P Static Var Compensator – Nags Head, N.C.
  • Hathaway Sub 230-115-kV Transformer and 230-kV Ring Bus – Rocky Mount, N.C.

The remainder of the total is a multitude of small $1m to $10m projects that were completed in the first half of the year.

The spokesperson added that the major Dominion Energy Virginia projects included in the $800m total that was referenced during the call are:

  • The Elmont to Cunningham 500-kV Rebuild in central Virginia. The total anticipated project cost is $103m, and the project, which is in construction, has a target date of December
  • The Carson to Rodgers Rd Rebuild in southern Virginia. The total anticipated project cost is $52m, and the project, which is in construction, has a target date of December 2018
  • The Warrenton and Vint Hill 230-kV lines in northern Virginia. The total anticipated project cost is $109m, and the project, which is in construction, has a target date of December 2018
  • The Poland Rd 230-kV line in northern Virginia. The total anticipated project cost is $44m, and the project, which is in construction, has a target date of June 2018
  • The 115-kV 47 line rebuild in central Virginia. The total anticipated project cost is $44m, and the project, which is in construction, has a target date of June 2018

During the call, Farrell also noted that the company last month announced that it has signed an agreement with DONG Energy to build two 6-MW turbines off the coast of Virginia Beach.

“The two companies are now refining agreements for engineering, procurement, and construction,” he said. “Dominion Energy remains the sole owner of the turbines, which [are] targeted for completion in 2020. We plan to seek rider recovery in Virginia for the project.”

Earnings report

Dominion on Aug. 2 announced unaudited reported earnings determined in accordance with Generally Accepted Accounting Principles (reported earnings) for the three months ended June 30, of $390m, or 62 cents per share, compared with earnings of $452m, or 73 cents per share, for the same period in 2016. 

Operating earnings for the three months ended June 30, were $421m, or 67 cents per share, compared to operating earnings of $441m, or 71 cents per share, for the same period in 2016, the company said, noting that operating earnings are defined as reported earnings adjusted for certain items. 

The principal difference between reported earnings and operating earnings for the quarter were transition and integration costs associated with the Dominion Energy Questar combination, the company said. 

About Corina Rivera-Linares 3058 Articles
Corina Rivera-Linares, chief editor for TransmissionHub, has covered the U.S. power industry for the past 15 years. Before joining TransmissionHub, Corina covered renewable energy and environmental issues, as well as transmission, generation, regulation, legislation and ISO/RTO matters at SNL Financial. She has also covered such topics as health, politics, and education for weekly newspapers and national magazines. She can be reached at clinares@endeavorb2b.com.