Dominion Update May 2016

Residential Rates Remain Very Competitive Residential Rate Comparison, Typical Monthly Bills, 1,000 kWh As of May 2016, Dominion’s typical residential bill is 9.7% below the VA statewide average, 14% below the national average, 17.1% below the D.C. regional average, 23.6% below the East Coast average, and 32.3% below the RGGI states average. ^^ † ^ * *DVP bill: Rates effective May 2016. ^^VA Average: VA State Corporation Commission Report (Sept. 2015) for rates effective July 1, 2015; latest data available. Includes co-ops, IOUs. †D.C. Regional Average: DVP (May 2016), Baltimore Gas & Electric, Potomac Electric (D.C.), Potomac Electric (Montgomery Co.), and Potomac Electric (Prince George’s Co.). ^ RGGI (Regional Greenhouse Gas Initiative) states include CT, DE, ME, MD, MA, NH, NY, RI and VT Source: Edison Electric Institute, Typical Bills and Average Rates Report: Winter 2016. Rates effective Jan. 1, 2016. Annualized, monthly residential bills, 1,000 kWh usage.

Industrial Rates Remain Extremely Competitive Industrial Rate Comparison, average rate per kilowatt-hour, 1,000 kW demand and 650,000 kWh usage As of May 2016, Dominion’s typical industrial rate is 17.4% below the Southeast Peer Group average, 30.5% below the national average, 41.2% below the East Coast average, and 47.2% below the RGGI states average. (¢/kWh) † ^ * DVP bill: Rates effective May 2016 †Southeast Peer Group: AL Power, Duke (NC), Duke (SC), Entergy MS, FPL, GA Power, Gulf Power, MS Power, Duke Energy Progress (NC), Duke Energy Progress (SC), Duke Energy Florida, SCE&G, TECO, Kentucky Utilities, and Louisville Gas & Electric ^ RGGI (Regional Greenhouse Gas Initiative) states include CT, DE, ME, MD, MA, NH, NY, RI and VT Source: Edison Electric Institute, Typical Bills and Average Rates Report : Winter 2016. Rates effective Jan. 1, 2016. Annualized, monthly industrial bills, 1,000 kW demand & 650,000 kWh usage.

2014 Electricity Import/Exports by State VA

Dominion Generation Utility Generation Resources CAPACITY (19,829 MW) Dominion Generation 80% of Virginia’s electric energy needs 70% of Virginia’s electric energy CO2 emissions The Fastest growing electric service territory in PJM Richmond Washington D.C. Hampton Roads VA NC Fuel diversity generation mix

Clean Power Plan MASS basis Dominion Generation – 2016 IRP Capacity Resource Plans (Years 2017-2041) Clean Power Plan MASS basis Clean Power Plan INTENSITY basis 3-5% higher than Base 21-35% higher than (or 7x higher than existing only) 330 mw DSM 12 mw Wind Incremental NPV cost $ 5.1 B = Dual rate $ 6.0 B = State rate $ 5.6 B = Existing only $12.8 B = existing + new Steam : 1,305 lb/mwh NGCC: 771 lb/mwh VA: 934 lb/mwh NC: 1,136 lb/mwh WV: 1,305 lb/mwh VA: ~27 M tons NC: ~51 M tons WV: ~51 M tons VA: ~28 M tons NC: ~52 M tons WV: ~52 M tons Gas is a integral component in all plans

Coal ash pond closure Result of 2015 EPA regulations EPA rule requires closure of coal ash ponds in one of three ways. Regardless of closure method, dewatering process is still necessary. Closure in place, Removal for beneficial reuse, Offsite disposal in a landfill. Closing ash ponds in place is the optimal solution: Fully protective of human health and the environment; Reduces the need for more than 1.5 million heavy truck trips or expensive rail transportation to move ash offsite.

Water discharged (required under any closure option) will be treated and tested before release To properly close the coal ash ponds, we will carefully treat, test and then discharge the water. Water quality test results will be available to the public on our website. Permits are fully protective of Water Quality Standards supporting all current beneficial uses. Discharge rate of 1,500 gpm vs 5.5 million gpm

Comparison of Removal Options Facility Pond Amount of CCRs (Cu Yards) Total Truckloads Difference ($MM)* Plan Time Difference (Years) Bremo East Pond 2,000,000 138,240 $244.90 2.25 North Pond 3,700,000 224,640 $391.90 4.3 West Pond 300,000 25,920 $89.60 0.75 Chesapeake Bottom Ash Pond 70,000 7,560 $100.80 -0.25 Landfill 1,000,000 60,480 2.0 Historic Peninsula 191,520 $685.00 9.5 Chesterfield Lower Pond 750,000 69,120 $76.40 -1.0 Upper Pond 12,500,000 699,840 $1,124.20 10.4 Possum Point A ,B and C Ponds 20,160 $29.50 0.5 D Pond 2,600,000 151,200 $409.00 5.75 E Pond 50,400 $65.60 0.9 Totals 25,970,000 1,639,080 $3,217 * Estimated costs are preliminary only and include +/- 50% adjustment factor

Growth in Demand for Natural Gas in VA and NC (in billion ft3/day) By 2025, the U.S. Census Bureau predicts a population increase of:  1.8M in Virginia  2.1M in North Carolina

Atlantic Coast Pipeline project details Length: Approximately 600 miles Pipe: VA/West Virginia: 42-inch diameter North Carolina: 36-inch diameter Hampton Roads: 20-inch diameter Capacity: 1.5 billion cubic feet/day Three compressor station locations: Lewis County, WV Buckingham County, VA Northampton County, NC Route: Since the initial preferred route was filed in Sept. 2015, additional route alternatives have been studied, filed and adopted

Economic Analysis* VIRGINIA Total capital expenditures (VA): $2.5 billion During Construction Economic activity: $1.4 billion total Jobs created: 8,800 Local tax revenue: $2.4 million annually During Operation Energy cost savings: $243 million annually Economic activity: $37.8 million annually Jobs (direct/indirect): 1,300 Local tax revenue: $10.4 million annually ACP will have significant economic impacts in Virginia. 282 miles of pipeline through 13 counties * Analysis provided by ICF International, Chmura Economics & Analysis, and Dominion Resources.

Intensity-Based (Rate) Compliance Mass-Based Compliance Virginia developing plan for compliance Intensity-Based (Rate) Compliance lbs CO2/MWh Mass-Based Compliance Cap and Trade Model Tonnage Cap Option 1 Intensity (rate) cap based on generation type 771 lbs/MWh gas units 1305 lbs/MWh coal units Option 4 Emission cap for existing units only 27.4 million tons Option 2 Statewide average intensity (rate) cap 934 lbs/MWh units Option 5 Emission cap for existing and all future units 27.8 million tons Approx. 1.4% total increase allowed (not per year) Proposed in June 2014; finalized(pre-publication) in August 2015; published in Federal Register on October 23, 2015. #5 provides for just 1.4% growth - - includes all future units and could have negative consequences from economic growth standpoint. 4-5 likely easier to administer – EPA pushing states to these EPA will administer mass based programs for states, states have to administer rate-based programs on their own Trading is available in all options with state with like plans. Option 3 Unique statewide average intensity (rate) cap not to exceed state limit Less than 934 lbs/MWh units Option 6 Unique statewide cap not to exceed state limit

9/13/2018 US EPA Clean Power Plan Final Rule Compliance timeline with rate-based example Final Rules remain very challenging for Virginia because of new provisions not included in the proposed rule Final Rule 37% Draft Rule 38% 2012 2016 2018 2020 2022 2025 2028 2030 Baseline Initial State Plan Due Final State Plan Due Final Goal Adherence Draft: 1 interim goal (2020) Final: 3 interim goals (2022-24, 2025-27, 2028-29)

Commitment to renewable energy in Virginia In addition to other renewable energy sources, 400 megawatts of solar / 15