Local power provider reduces workforce

SALEM – Dominion Res-ources Inc., which provides electricity for the Greater Lynn area at its North Shore facility, has reduced its nationwide staff by about 1,400, representing about 8 percent of its workers, who have accepted a buyout offer designed to cut costs.Dominion, based in Richmond, Va., said last month that it was offering buyouts to about 4,800 workers and expected about 1,000 to accept the voluntary severance package. The program began in early January at specific plants and was expanded companywide in March.Even though more people agreed to the buyouts, the company accepted nearly all of them, corporate spokesman Ryan Frazier said last week. The company said it is still is determining the financial savings from the buyouts.Daily Item phone inquiries on how this workforce reduction affects the staffing at the Salem Harbor Power Plant were not returned and the company did not provide any breakdown of where the buyouts occurred for this story.The Salem power plant sits on 65 acres of historic waterfront property and began operations in 1951. It generates about 745 megawatts, enough electricity to power about 745,000 local homes, using coal and oil as its primary fuels.The plant utilizes three coal-fired generating units, producing 312 megawatts, and one oil-fired unit, producing 433 MW.Dominion has about 17,200 employees in the 14 states it operates, about 10,000 of those in Virginia. Participating workers, who must have been at least 55 years old and with the company at least three years, began leaving on the first of the month and will continue leaving for several months.Workers will receive a month’s pay, up to 18 months, for each year of service, as well as six months of medical and life-insurance coverage. They also will remain as Dominion employees for two months and receive full pay and benefits during that time.The company also has cut about two dozen jobs in some reorganized parts of the company and expects an additional 50-75 job cuts at its Millstone Power Station in Connecticut, Frazier said, adding that the cuts have no affect on safety and reliability.Dominion has said it was offering the buyouts to save money and take proactive steps as the economy recovers, but said the company remains financially strong.In January, Dominion said its fourth-quarter profit fell 53 percent, hurt by warmer-than-normal weather during the fall and higher costs from unplanned outages at its power generating stations.Dominion, which produces electricity, natural gas and oil and operates the nation’s largest natural gas storage system, also has operations in Connecticut, Illinois, Indiana, Maryland, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Texas, Virginia, West Virginia and Wisconsin.Associated Press material was used in this report.