Dominion, EPA agree on fines, air quality improvements to resolve NOV

April 21, 2003
Dominion Resources Inc., Richmond, Va., has reached an agreement with the US Environmental Protection Agency, the US Department of Justice, and the states of Virginia, West Virginia, Connecticut, New Jersey, and New York whereby Dominion will pay $1.2 billion to improve air quality in those states to resolve lawsuits and a June 2000 EPA notice of (environmental) violation.

By OGJ editors

HOUSTON, Apr. 21 -- Dominion Resources Inc., Richmond, Va., has reached an agreement with the US Environmental Protection Agency, the US Department of Justice, and the states of Virginia, West Virginia, Connecticut, New Jersey, and New York whereby Dominion will pay $1.2 billion to improve air quality in those states to resolve lawsuits and a June 2000 EPA notice of (environmental) violation.

The NOV and a New York lawsuit alleged that Mt. Storm power station in West Virginia modified its generating units without obtaining proper permits, but Dominion claimed it conducted only routine maintenance.

Under terms of the agreement, Dominion will install state-of-the-art emissions-control equipment on coal-fired generating units in Virginia and West Virginia, reducing sulfur dioxide emissions by 64% and nitrogen oxide emissions by 66% over 2000 levels, and it will convert the Mt. Storm power station and Possum Point power station near Washington, DC, to natural gas-fired generation from coal-fired generation.

In addition, Dominion will pay a $5.3 million civil penalty to resolve issues at Mt. Storm, commit $14 million for major environmental programs or projects, and surrender 45,000 SO2 emissions allowances each year beginning in 2013.

Dominion said it plans to complete several of the projects ahead of the 2013 schedule required by the decree.