Climate Change

Dominion's balanced fleet of generating stations positions us well to meet the paramount environmental challenge of the 21st century — climate change.

A recent study by an environmental organization found that Dominion was in the top third of U.S. utilities in minimizing "carbon intensity" — the amount of CO2 discharged for each megawatt-hour of electricity produced. And a report by a VA Department of Environmental Quality advisory committee earlier this year underscores that finding: Virginia's per-capita carbon emissions are 16 percent below the national average.

Dominion's two nuclear power stations in Virginia — Surry and North Anna — play a crucial role in minimizing greenhouse gas emissions for the company, and indeed for the whole state. Both have won worldwide recognition for safety and efficiency - while producing approximately 40 percent of the electricity we supply to our customers.

And we have recently filed for federal permits to build and operate a third, advanced-design reactor at North Anna. We have made no final decision on whether to proceed with construction, but we think it is important to keep this zero-emissions option open for the commonwealth.

On other fronts, we're partnering with Virginia Tech on a project to store power plant carbon dioxide emissions in underground coal seams — and we are ramping up our investments in environmentally friendly renewable energy and in conservation programs.

We also recognize that climate change legislation — and carbon emission regulation — are probable in the relatively near future.

But in developing this legislation, it's important for policy makers to remember that a successful greenhouse gas reduction strategy will involve the whole economy — not just the electric utility industry.

When you look at the man-made sources of greenhouse gas emissions, we can see that the electric industry makes up a big part of it, but it is only one-third. That's true nationally — and also in Virginia. In the Commonwealth, the largest share of greenhouse gas emissions comes from transportation — including cars and trucks.

Nor can the states implement a patchwork, piecemeal series of carbon regulations — imposing widely differing — not to mention confusing and unfair — standards on different regions of the country. If we are really going to address this issue, we need to do it on a national level.

And as Congress acts, we believe it is important that any climate change bill avoid shocks to the economy — and above all work to hold down the rate increases that are almost certain to accompany carbon control. This can be best achieved through what has been termed the "slow, stop, reduce" approach. First, slow the rate of increase of carbon emissions. Next, stop the increase and hold carbon emissions steady. Finally, take steps to reduce greenhouse gas emissions.

We have announced our support for legislation sponsored by Sen. Jeff Bingaman (d-New Mexico) and Arlen Specter (R-Pennsylvania). The bill calls for a 60 percent reduction in greenhouse gas emissions by 2050, measured against 2006 levels. And we think it better embodies the "slow, stop, reduce" approach than other bills currently introduced in Congress.