Dominion Virginia Power, a subsidiary of Dominion Resources Inc. (D) announced plans to spend $4 billion over three years to improve and expand its ability to provide reliable electric service to its customers.

In a letter to the company’s 2.3 million customers, management pointed out that Dominion is focused on areas where service reliability did not meet the company’s systemwide average, which reached 99.9% in 2009. As part of its efforts improve service to customers, the Dominion said it is adding new gas-fired generating units and a hybrid coal station which will enable it to keep up with growing demand.

The company informed its customers that it is focused on making improvements to older stations to reduce their emissions. Dominion’s distribution system reliability has improved since 2004, primarily through identifying and focusing on circuits where interruptions are more frequent. Last year Dominion Virginia Power reconditioned over 350 miles of electrical circuits Incorporatedluding installing more than 1,000 new poles, 3,500 new lightning arrestors and other devices.

In its letter to customers, management also stated that the company has invested more than $2 billion in recent years on pollution-control equipment to reduce emissions and meet more-stringent environmental requirements. Management noted that customers continue to use more power, despite the recession, and said it expects the demand for electricity to increase as the economy recovers.

Dominion said it is committed to meeting Virginia’s goal of achieving 15% of its electricity sales from renewable sources in 2025 and reducing customers demand by 10% over the next 12 years.

Last month, parent company Dominion Resources Inc. said it would spend $253 million to upgrade a network of natural gas pipelines in West Virginia that was never designed to handle the gas bonanza that has been uncovered in the region. The work will ease pressure within its system and increase the amount of gas that producers can move out of the state.

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