Dominion seeks loan guarantee to back North Anna reactor plan

Date published: 8/16/2008

By RUSTY DENNEN

Dominion Virginia Power is seeking a federal loan guarantee for the construction of a third nuclear reactor at the North Anna Power Station.

The company announced yesterday that it had filed an application with the U.S. Department of Energy.

The DOE loan guarantee program was created in 2005 to help finance the first wave of new commercial reactors in the United States.

"Today's filing is another important step in the process we began more than seven years ago to position ourselves to be among the first to get a license for a new nuclear unit," Mark F. McGettrick, president and chief executive officer of Dominion Generation, said in a press release.

DOE loan guarantees would allow the agency to share some of the financial risks of projects that employ new or significantly improved energy technologies that avoid, reduce or sequester air pollutants and greenhouse gases.

If Dominion's application is approved, the federal government would guarantee all of the project's debt up to 80 percent of construction costs. Dominion has received millions of dollars in DOE funds set aside to help utilities with the cost of the reactor-application process.

Dominion has not yet said how much a possible third reactor would cost, but some industry estimates have put the price tag of a new nuclear unit at about $6 billion.

There are currently two reactors at the North Anna Power Station on Lake Anna, which borders Louisa, Spotsylvania and Orange counties.

Congress has appropriated $18.5 billion under the guarantee program for new nuclear plants.

Dominion is in the final stage of a lengthy application process for a new reactor at the power plant near Mineral.

The Nuclear Regulatory Commission could make a decision by late 2010.

Thomas F. Farrell II, the Richmond-based company's chairman, said in July that he'd like to see a new reactor in operation at North Anna by 2016.

Rusty Dennen: 540/374-5431
Email: rdennen@freelancestar.com

Date published: 8/16/2008