Dominion to Cut Power Plant Emissions

"Dominion is proud of its long history of environmental stewardship," Farrell said. "The construction projects we announce today set a new standard in our pledge to be a national leader in the effort to improve air quality."

Farrell said the company is barred by state law from increasing household electricity rates to cover the costs of the capital construction until 2010. After that, the utility's rates will be set by competition in the wholesale market, he said.

The company has felt pressure to reduce emissions from the Virginia legislature as well as the EPA. This year, the company helped defeat a bill by Del. John. S. "Jack" Reid (R-Henrico) that he said would have imposed stiffer requirements and a tighter timetable.

"You can't solve this problem with a local solution," Farrell said at Tuesday's news conference.

Reid said he is pleased with actions taken by Dominion since his bill died in committee this year. "They're to be commended, because they have certainly taken some positive steps," he said.

But Reid said he intends to draft legislation that pushes Dominion and other power companies in the state to be more aggressive in limiting the amount of mercury released into the air. Mercury is a neurotoxin that is especially dangerous to children and fetuses.

"The mercury still is a problem," Reid said. "Legislation this year will be aimed primarily at mandating a reduction in that."

Reid said he understands the concern about trying to legislate a state solution to air pollution, which by its nature wafts across state borders. But he said he is motivated to do something in part by his wife, who has a dangerous breathing condition that is exacerbated by air pollution.

"If every state were to take the position that it's not our responsibility," he said, "we'd never get anything cleaned up."