This came from the Yahoo stock page for Dominion Resources, parent of Va Power. Didn't check their web site, so I guess this is still officially a rumour. If it is true, it would tend to contradict Bonnie (and others) assertion that V.P. added generation for Y2K purposes. Certainly buying a Nuke is not a logical way to reduce Y2K exposure.

from Yahoo stock pages:

Nuke News by: future_money 508 of 508 Virginia Power expects to buy a nuclear plant by years end and has plans to acquire several more.

Jim OHanlon, president, chief operating officer and chief nuclear officer of Dominion Generation, said the utility has been in discussions with other utilities about possible purchases.

OHanlon said the company has more than one confidentiality agreement in place to have more detailed talks with utilities. The number of additional units the company may purchase depends on how many it could run while also maintaining the quality of operations at North Anna and Surry, he said.

Virginia Power employees helped Northeast Utilities Millstone Unit 2 return to service earlier this year after an extended shutdown. OHanlon said the company would be interested in Millstone if and when Northeast Utilities announces its availability.

-------------------------------------------------------------------------------- Posted: 06/17/1999 11:25 am EDT as a reply to: Msg 501 by LKmtrspts

-- Anonymous, June 17, 1999

Answers

Art,

I'm sure that Rick and/or Bonnie will have more to say, but there are a number of nuke plants up for sale right now. I suppose it will only be a matter of price, and I have read that some are a real bargain compared to what they cost. This may be nothing more than how the banking sector operates when one of it's competitors runs into financial trouble, or recently, can't get it's computer systems ready. It then gets "merged" with someone who can handle it. So Virginia power could be setting up a bargain deal for the future.

-- Anonymous, June 17, 1999

The sale and/or purchase of nuclear plants is being driven, for the most part, by deregulation. Companies like GPU, for instance, which has 3 nuclear plants, has decided that the company future resides in the power distribution end of the market. So, they're selling their nukes.

Companies like PECo Energy have decided that they wish to have a strong nuclear presence in their generation portfolios, and that they can effectively (and profitably) operate nuclear plants. So, they're buying nukes, or entering into operating agreements with utilities that want to get out of the nuclear plant management business (ComEd, for instance).

Some nukes are going for what may be perceived as bargain basement prices. Valuation of a nuclear unit has a lot to do with megawatt rating and relative age of the plant. A plant that has a useful remaining life (without life extension) of say, 10 years, is going to be worth a lot less than a plant with 20 years left.

The shuffling of ownership of nuclear plants at this point in time, in my opinion, has little to do with Y2k and everything to do with competition and corporate future positioning.

-- Anonymous, June 17, 1999

Rick,

Thanks. If you take your post, scratch out Nuclear, and replace with co-generation, you have perfectly stated my arguement that the generation coming on line has EVERTHING to do with de-regulation and little - nothing to do with Y2K.

-- Anonymous, June 17, 1999

Simple Simon's here again -- asking:

Can transfer of ownership of an operating nuclear power plant be defined as adding generation capacity?

Buying a used car doesn't add to the number of vehicles on the road.

Maybe I'm missing something...?

-- Anonymous, June 23, 1999