For Immediate Release

Contact: Bob Lazaro, PEC Director of Communications, (571) 225-0198

Dominion Power's Press Release on SCC Report "Wishful Spin"

(Warrenton, VA - January 10, 2008) A news release issued by Dominion Virginia Power (1/9/2008) regarding the State Corporation Commission (SCC) staff report on Dominion's proposing a high-voltage transmission line can only be described as wishful spin. Dominion's application for the line was filed on April 19, 2007.

"The SCC Staff report makes it clear that there are alternatives to Dominion's ill advised and unnecessary transmission line," said Christopher G. Miller, President of the Piedmont Environmental Council. "The report reveals what we have known for some time, Transmission line proponents are using unreliable and outdated data. In question in the case before the SCC is the issue of whether the assumptions relied on by Dominion and PJM are realistic for making a determination on a billion dollar proposal with such significant impact."

The SCC sponsored Bates-White report on electrical transmission issues contains two important conclusions:

• "Considering the large investment and siting impacts of the proposed transmission line, the determination of need by the Commission should be based on the latest information available at the time of such a determination. Much has changed since the date of the Application. Among the most relevant changes are new PJM and DVP load forecasts (2008) that should reflect significant changes in the projected economic growth of the region. Of equal if not greater importance are the growing number of generators and merchant transmission projects that by virtue of having a signed interconnection service agreement (ISA) and/or having a completed Facilities Study are now considered viable by PJM and are thus included in the reference power flow case (2012 Retool Case). Also not known at the time of the Applications was the additional demand-side resource capacity captured by the three RPM Base Residual Auctions held by PJM from April to August 2007."
• "As explained in the body of this report and in the specific findings that follow, the Amos- Kemptown line (a large west-east transmission project approved by PJM after the Applications had been filed, and scheduled to be completed by 2012) may eliminate the need for the Loudoun line if other proposed generation projects come on-line as currently expected. However, as Bates-White's preliminary analysis for this alternative was not based on the most comprehensive and recent load, generation, and transmission project information available, it is recommended that the Commission examine the need for the proposed line based on the more thoroughly updated 2012 retool case, which was only completed by PJM and DVP as of the last week of December 2007."

PEC filed extensive testimony in December 2007. The expert testimony clearly shows that Dominion and Allegheny's proposed high-voltage transmission line is unnecessary and that reasonable alternatives that have significantly less impact are available to the power companies to meet the electricity needs of Northern Virginia or the region. The testimony reveals that Dominion and Allegheny:

• Ignored substantially less costly and less environmentally damaging solutions;
• Misrepresented the need for the proposed transmission line as a local Northern Virginia issue rather than as a regional issue;
• Made wildly unrealistic assumptions that no new generation would be built and that no savings would come from conservation and demand management; and
• Claimed falsely that the proposed transmission line will benefit consumers, when (as they know) studies show that the line will cost consumers more in the long run.

The PEC testimony includes:

• Dr. Hyde Merrill on the issue of need. Dr. Merrill has been an energy consultant to electric utilities for over 25 years. This is the first time he has testified on behalf of an environmental conservation group. His review of the data in this case shows that any of several less costly improvements using existing technology could solve any projected Northern Virginia power needs more effectively than this transmission line.
• Dr. Daniel Violette on the issue of demand side reduction. Dr. Violette critiques Dominion's demand side reduction program and shows how Virginia could easily reduce energy use 10%, eliminating the need for additional transmission in Northern Virginia.
• Dr. Benjamin J. Sovacool on the issue of national security and resource utilization. Dr. Sovacool demonstrates that the increasing Virginia's dependence on high voltage transmission lines to access remote power generating stations lessens reliability and degrades regional and national security.
• Mr. William Harvey on real estate valuation. Mr. Harvey shows that there will be substantial uncompensated damage to property owners all along the proposed transmission line route.
• Mr. Gerry Sheerin on undergrounding. Mr. Sheerin confirms that undergrounding is technically feasible and used by utilities in the US and around the world in order to preserve environmentally significant areas.
• Dr Kristina Hill on scenic and cultural damage. Dr. Hill, head of the Landscape Architecture program at University of Virginia School of Architecture, critiques the Dominion and Allegheny analysis of detrimental impact on scenic assets.
• Ms. Jennifer Hallock on scenic and cultural damage. Ms. Hallock reviews the damages that the transmission lines could inflict on cultural and scenic assets along the proposed routes.
• Mr. Watsun Randolph on the impact of the proposed lines on scenic, cultural and historic assets in the area. Mr. Randolph prepared maps that show the potential areas impacted by the proposed lines, including portions of Skyline Drive, Civil War battlefields and Scenic Rivers.
• Ms. Kimberly Abe on scenic and cultural damage. Ms. Abe reviews the damages that the transmission lines could inflict on the cultural and scenic assets along the proposed routes.