RICHMOND, Va., Feb. 18, 2015 /PRNewswire/ -- Dominion (NYSE: D) Virginia Power's North Anna and Surry power stations were among the lowest cost producers of nuclear-generated electricity in the nation, according to a recent report by a nuclear industry trade publication.
North Anna and Surry were the lowest and second-lowest cost producers of the companies that reported their costs to the federal government during the three-year period 2010-2012, Nucleonics Week, a newsletter and database published by Platts, reported recently. Platts is a leading global provider of energy and commodities information and a unit of McGraw Hill Financial.
"Safety, operational excellence and low costs are goals we strive for every day," said David Heacock, chief nuclear officer. "Key to our low-cost performance is our highly skilled and experienced work force in addition to having identical units. It is gratifying to see that we have been very successful when compared to other operating nuclear units."
According to Nucleonics Week, which published the story in late January, of 27 stations reporting their nuclear operations and maintenance costs, average production costs from 2010 through 2012 for North Anna and Surry were the lowest – $16.05 and $17.38 per megawatt-hour, respectively.
Averaging operations and maintenance costs over a three-year period provides a more accurate perspective of nuclear generation costs because it minimizes the impact of refueling outages. Dominion's nuclear units are refueled every 18 months. Typically, refueling outages in the industry take about 35 days to complete, depending on the scope of work required for each outage.
Meanwhile, North Anna was the lowest-cost producer of nuclear-generated electricity for 2012, and Surry ranked as the fifth lowest-cost producer, of the stations that reported costs. North Anna and Surry's operations and maintenance costs totaled $14.76 and $20.21 per megawatt-hour, respectively.
"We have a huge advantage in being able to share spare parts, and share workforce and procedures," Heacock said. He also noted that the company benefits from performing more work in-house, which provides a significant cost advantage over other nuclear operators.
Dominion (NYSE: D) is one of the nation's largest producers and transporters of energy, with a portfolio of approximately 24,600 megawatts of generation, 12,400 miles of natural gas transmission, gathering and storage pipeline, and 6,455 miles of electric transmission lines. Dominion operates one of the nation's largest natural gas storage systems with 947 billion cubic feet of storage capacity and serves utility and retail energy customers in 12 states. For more information about Dominion, visit the company's website at www.dom.com.