Dominion Resources Inc
) business arm, Dominion Virginia Power received approval from
the state's regulators for the construction and operation of a
solar power demonstration project in Virginia.
The construction of the 30-megawatt solar generation
facilities was sanctioned by the State Corporation Commission
("SCC"). The facilities would be constructed at different
locations by leasing rooftops of commercial, industrial, and
public government buildings. Each installation will have a
generating capacity of 500 kilowatts to 2 megawatts and will span
a roof area of 75,000 square feet or more.
The renewable program's estimated cost was set at $111 million
by the company. However, regulatory authorities restricted
capital spending to $80 million to reduce the burden on
customers. When operational, the project output would be adequate
to power around 6,000 homes during peak daylight hours.
The solar facility will boost Dominion's position given the
current positive vibe in the U.S. energy market that favors
eco-friendly sustainable power generation. Although the use of
wind energy for electric generation has gained considerable
grounds in the U.S., we believe solar energy is not far
The potential increase in solar energy usage in the U.S. will
significantly complement Dominion's targeted renewable growth
goals of 15% for its Virginia operations by 2025. The Zacks
Consensus Estimates for the fourth quarter and full year 2012
presently stand at 69 cents and $3.06 per share,
Another utility operator
American Electric Power Company Inc.
) Ohio subsidiary, AEP Ohio entered a 20-year power purchase
agreement for solar energy with Turning Point Solar LLC., a joint
venture of Agile Energy Inc. and New Harvest Power. Both American
Power and Dominion currently retains a Zacks #3 Rank (Hold
Dominion Resources, Inc., together with its subsidiaries,
engages in producing and transporting energy in the United
States. It operates in three segments: Dominion Virginia Power,
Dominion Generation and Dominion Energy. With market
capitalization of $29.12 billion, the company has total 15,800
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