5/7/2010 12:39:09 PM

Old Dominion Electric Cooperative (ODEC) announced today that it has exercised options to purchase nearly 1,600 acres of property in the Town of Dendron and Surry County, Va. as a possible site for its proposed Cypress Creek Power Station.

The major portion of the property involved in the transactions was the original site of the Surry Lumber Company which operated from 1885 until its closing in 1927, according to C. David Hudgins, ODECs director of member and external relations.

The purchase of this property in Dendron and Surry County is further evidence of ODECs commitment to continue to pursue our goal of building the Cypress Creek Power Station and to provide a reliable source of affordable electricity to meet Virginias growing energy needs, Hudgins said. It is also demonstrates our commitment to the citizens of Dendron and Surry County to be a true partner in helping to create needed job opportunities and boost tax revenues for both localities.

ODEC had held options to purchase 1,531 acres from Mussel Forks Farm, LLC and an adjoining 10 acres from a local resident since announcing its interest in locating the Cypress Creek project in January 2008. In February 2010, the Dendron Town Council and the Surry Board of Supervisors approved zoning and conditional use requests recommended by the Surry County Planning Commission that permits the construction of a power generation facility on the property.

The total purchase price for the properties was $14,254,800, Hudgins said. In addition to the property purchased as a possible site for the Cypress Creek project, ODEC also purchased 4.1 acres on the James River at Cobham Wharf in Surry County as the proposed site for the projects water intake facility. Purchase price for this property was $1,117,428, Hudgins added.

As part of the permitting process for the proposed Cypress Creek project, the U.S. Army Corps of Engineers (COE) is evaluating the potential impacts of the project in accordance with the requirements of the National Environmental Policy Act (NEPA). While the Dendron property has been designated by ODEC as the preferred site for the proposed power station, ODEC also plans to exercise its option to purchase a 1,222 acre site in Sussex County, Va. as a potential alternative location. ODEC plans to complete the purchase of the Sussex County property within the next 90 days, Hudgins said.

More than 50 permits and approvals from various state and federal agencies are required before a site for the Cypress Creek project is chosen and construction can begin. The COE is the lead federal permitting agency responsible for conducting a full Environmental Impact Statement (EIS) under the NEPA process. The United States Environmental Protection Agency (EPA) is serving as a cooperating agency. The EIS and other relevant contributing factors will determine which of the two sites is ultimately chosen for construction of the proposed Cypress Creek Power Station.

Both sites were chosen for final assessment after ODEC conducted an extensive five-year siting study of potential locations in the Mid-Atlantic region. The study found that these two sites meet important criteria such as a large footprint and access to transmission lines and rail transportation. For more information about the project, please visit www.cypresscreekpowerstation.com .

ODEC is a generation-and-transmission cooperative that provides wholesale power to 11 local member electric distribution cooperatives in Virginia, Maryland and Delaware, including Northern Neck Electric Co-op. ODEC and its member systems are not-for-profit electric cooperatives that are owned by their member consumers and serve nearly one million consumers throughout the Mid-Atlantic region.