Dominion admits the ACP is an extremely risky project. Investors beware.

Atlantic Coast Pipeline Project—The Atlantic Coast Pipeline project, which will be constructed by DTI, is expected to have a total cost of approximately $4.5 to $5 billion, excluding financing costs, and will involve significant permitting and construction risks. The project requires the approval of FERC and other federal and state agencies, which could be delayed or withheld. Dominion expects opposition from certain landowners and stakeholder groups, which could impede the acquisition of rights of-way and other land rights on a timely basis or on acceptable terms. The large diameter of the pipeline and difficult terrain of certain portions of the proposed pipeline route aggravate the typical construction risks with which DTI is familiar. In-service delays could lead to cost overruns and potential customer termination rights. Dominion owns a 45% membership interest in Atlantic Coast Pipeline. Dominion’s lack of a controlling interest means that it has limited influence over this business. If another member were unable or otherwise failed to perform its obligations to provide capital and credit support for this business, it could have an adverse effect on Dominion’s financial results.

http://www.viewmaterial.com/d/D_14AR.PDF


Be the first to comment

Please check your e-mail for a link to activate your account.
Created with NationBuilder | Privacy Policy