Dominion Overview

Headquartered here in Virginia Dominion: In Virginia Headquartered here in Virginia More than 9,000 employees in the Commonwealth Annual Virginia payroll of more than $1 billion Professor Fuller of GMU estimates that Virginia Power alone represents more than 1 percent of the Virginia economy More than 73,000 Virginia shareholders Total non-income tax payments in Virginia in 2010: $406 million Major Generating Facilities in Virginia and West Virginia Mt. Storm Possum Point Bath Bremo North Anna VA City Chesterfield Surry Chesapeake Yorktown Clover I’d like to start by talking about one of Dominion’s strengths, fuel diversity. That’s a fancy way of saying we don’t put all our eggs in one basket. We have a balanced mix of nuclear, fossil fuels, and renewable energy. Nuclear power is one of our great strengths, it’s only 18 percent of our system capacity but it is 41 percent of what we generate, because our nuclear stations run almost all the time. We are one of the best, we like to think the best nuclear operators in the United States with two units in Surry County and two at North Anna in Louisa County. We also have a growing amount of natural gas and renewable capability. Bear Garden Hopewell Altavista Southampton

Source: PJM long-range forecast, January 2011 Upcoming Energy Gap Virginia is the 2nd largest importer of electricity; existing capacity is well below peak demand “Powering Virginia” strategy provides energy roadmap for providing Virginia's energy needs New generation to meet growing demands for 4,500 additional MW Megawatts (MW) 18,000 20,000 16,000 22,000 The “gap” 4,500 MW by 2021 New generation under construction (1165 MW*) Although the economy has slowed, the recession won’t last forever. And as the recovery begins, the demand for electricity will increase. In fact, PJM – the organization that operates the electric transmission grid throughout much of the East – believes peak demand for electricity will grow at an annual rate of 2.5 percent over the next decade. For the PJM area as a whole, the projected annual grow rate is just 1.7 percent. And with that rising demand comes a rising “energy gap.” PJM predicts that the peak demand for electricity by Dominion customers will go up by 5,600 megawatts by 2020…a staggering amount of power, if you consider the fact that, at periods of peak usage, one megawatt can supply the needs of 250 homes. We have to take action – starting now – to start closing “the gap.” 2011 2021 Existing generating capacity Expected peak demand * New generation under construction: Bear Garden (580 MW), VCHEC (585 MW) Source: PJM long-range forecast, January 2011

New Generation Projects Bear Garden 580 MW natural gas-fired facility Providing electricity for 145,000 homes Expected completion in summer 2011 Virginia City Hybrid Energy Center 585 MW, coal-fired and biomass facility Providing electricity for 146,000 homes Expected completion in summer 2012 Warren County 1,300 MW, natural gas-fired facility Providing electricity for 325,000 homes Anticipating completion, pending approval, in 2014 Biomass Conversions Converting three coal stations to biomass facilities Providing 150 MW renewable energy

New Transmission Infrastructure and Reliability Two dozen major transmission projects under construction or in development throughout Dominion service territory More than 800 construction jobs Capital Expenditures: Transmission $ (millions) We have approximately 2 dozen “major” projects under construction or in development.  The benefits of this build out plan are significant.  As much of our transmission “grid” was built nearly half a century ago, these upgrades are critical to provide the infrastructure to support our modern lifestyles and future energy goals. As demand for electricity has steadily increased over the years, many of the existing lines are reaching their limits.  We are also trying to push new forms of energy onto the grid – intermittent forms of energy like solar and wind power.  Increased demand, aging infrastructure and new forms of energy necessitate a stronger, more reliable network for delivering bulk power to the population centers that need it.    Meadow Brook – Loudoun 500 kV (completed) Pleasant View – Hamilton 230 kV (completed) Carson – Suffolk 500 kV & 230 kV (complete – June 2011) Hayes – Yorktown 230 kV Line (under construction) Radnor Heights 230 kV Underground & Substation (under construction) Approved SCC projects Hopewell – Prince George 230 kV & Substation Loudoun – New Road 230 kV & Substation Pending SCC projects Mt. Storm – Doubs ($300 M) Lexington – Dooms ($120 M) Dahlgren 230 kV ($30 M) Cannon Branch – Cloverhill ($22 M) Hollymead 230 kV ($30 M) Dooms – Bremo ($64 M)

State Corporation Commission Filings May 2 – Dominion filed three separate rate cases for approval with SCC Transmission Warren County Fuel Factor Transmission and natural gas power station applications part of “Powering Virginia” strategy Continuation of reliable service Reducing out-of-state electricity imports First fuel rate increase in three years Pass-through cost, no profit to Dominion Annual adjustment to recover fuel and purchased power costs Deferral proposed to lessen impact on ratepayers

Record-Breaking Temperatures Norfolk, Virginia Top 10 Days for Maximum Daily Temperature – 2010 June 24 June 27 July 6 July 7 July 18 July 20 July 23 July 24 July 25 July 29

Warren County Power Station 1,300 MW natural gas-fired combined cycle facility; enough electricity for more than 325,000 homes Provide $950 million is direct and indirect economic benefits to the state during construction phase More than 2,700 jobs – approximately 1,670 in Warren County, including 600 direct construction jobs Post-construction: $35 million annually, approximately 100 jobs $122 million in fuel savings for customers if Warren County were already in operation during 2010

Possible Timeline for Environmental Regulatory Requirements for the Utility Industry

Other State Issues Pole attachments reviewed by SCC Net metering review Medical shutoffs regulations Alternative energy generation

Key Numbers Dominion Virginia Power is one percent of the VA economy Virginia is the second leading importer of electricity 4,500 MW of new capacity needed over next decade 2,615 MW of new generation under development and construction Projected $9.4 billion investment over next five years in generation, environment, transmission and distribution