For the purposes of this Complaint, the relevant lines of commerce in which to analyze the effects of the Acquisition are the generation of electric power and the distribution of natural gas. For the purposes of this Complaint, the southeastern area of Virginia is the relevant geographic area in which to analyze the effects of the Acquisition in the relevant lines of commerce. The markets for the generation of electrical power and the distribution of natural gas in southeastern Virginia are highly concentrated. Dominion, through its subsidiary, Virginia Power, accounts for more than 70 percent of the electric power generation capacity in the Commonwealth of Virginia. CNG, through its subsidiary, VNG, is the primary distributor of natural gas in southeastern Virginia.
Natural gas is one of a limited number of fuels used in the generation of electricity.
The proposed acquisition would provide Dominion with control of the available source of firm natural gas transportation capacity in the VNG service territory, thereby enhancing its control over the generation of electrical power in that area. The market for the generation of electrical power in the relevant area is characterized by high barriers to entry. Entry into the electrical power generation market in the relevant geographic area by construction of plants that use fuels other than natural gas is unlikely to occur due to environmental restrictions. With the acquisition of CNG by Dominion, entry into the electrical power generation market in the relevant geographic area by construction of plants that use natural gas may be deterred because of Dominion's control over VNG, the primary distributor of natural gas in southeastern Virginia. Entry into the market for the transportation and distribution of natural gas in the relevant geographic area is unlikely to occur in a timely manner to deter or counteract the adverse competitive effects described in Paragraph 15.