1 1 Dominion: New Directions in Energy

2 2 Map excludes Cirro Energy and Peoples and Hope LDCs 1.7 million non-regulated retail customers in 12 states Generation Regulated Merchant Electric Transmission Distribution Natural gas Storage Transmission Distribution Dominion Today

3 3 About Dominion: Diverse Generation Mix Dominion Virginia Power

Largest U.S. Power Producers (Pounds CO 2 per MWh Output) Source: Natural Resources Defense Council, 2008 Study Dominion About Dominion: Low Carbon Intensity

5 5 5 Demand is up Nationwide… Source: Energy Information Administration, U.S. DOE

6 6 6 Million mWh …And Here in Virginia

Energy Use Our Must-Haves Grow

8 8 8 With New Uses on the Horizon

9 9 Peak Demand (Megawatts) 18,000 20,000 16,000 22,000 Current generating capacity Projected Dominion peak demandPJM Forecast Additional Deficit of 4,600 MW by 2019 The Upcoming Energy Gap Virginias Mounting Electric Energy Gap

10 Intensified conservation programs Environmentally friendly generation, including renewable, clean coal, natural gas, possible nuclear Transmission and delivery system improvements, including smart meters Dominions Integrated Strategy

11 Seeking first base rate increase in almost 17 years 6.8 percent net increase in residential rates if approved by the SCC -Phased in over 14 months -First change a rate decrease Primarily to pay for needed infrastructure -Fill Virginias power generation gap -Upgrade transmission grid -Smart meters and energy conservation Virginia Rate Filings

12 Virginia Rate Filings Base Rate Proposed Increase Fuel Rate Proposed Decrease Separate requests for: –Virginia City Hybrid Energy Center –Bear Garden Combined Cycle Plant –Transmission Improvements –Conservation

13 Dominion Rate Comparison U.S. Average Residential Monthly Bill vs. Consumer Price Index vs. Dominion Virginia Power 1993 –2009 Sources: Consumer Price Index: U.S. Bureau of Labor Statistics, January 1993 to January 2009 U.S. Average: Edison Electric Institute, Winter Rates, Residential, 1,000kWh, Monthly Dominion Virginia Power: Edison Electric Institute, Annualized Rate, Residential, 1,000kWh, Monthly

14 Source: Edison Electric Institute, Season-Weighted Average *Dominion figure includes an increase in Base, Transmission, VCHEC, DSM, Bear Garden and a decrease in Fuel (7% - subject to change) Remaining Below the National Average

15 Virginia City Hybrid Energy Center Carbon capture and storage research Possible North Anna 3 nuclear unit New gas-powered generation Unit uprates Renewable energy: wind projects in WV, IN, IL, VA Dominions Response: Environmentally Friendly Generation Dominions Response: Environmentally Friendly Generation

16 Helps meet need for 24/7 electricity supplies Coupled with conversion of Bremo from coal to natural gas Environmental benefits - Uses biomass and waste coal million tons of CO 2 to be offset annually - All CO 2 to be captured and stored when commercially feasible - Sharp reductions in net mercury, sulfur dioxide and nitrogen oxides Virginia City Hybrid Energy Center What Dominion has proposed is the full up suite of controls. It is the best there is. Bruce Buckheit, State Air Pollution Control Board member - June 25, 2008.

17 NedPower in Mount Storm, WV: megawatts (partnered with Shell) Fowler Ridge in Benton County, IN: megawatts online (partnered with BP) - Could be expanded to total of 750 MW Prairie Fork in Christian & Montgomery Counties, IL: megawatts Virginia wind projects in Tazewell and Wise Counties Other projects in development in VA (not announced) Dominions Operating and Proposed Wind Energy Projects Dominions Operating and Proposed Wind Energy Projects

18 Transmission: Electricity's Highway System Power is useless unless you can get it where its needed. 18 Thirteen projects planned or under way in Virginia and North Carolina Critical projects in Hampton Roads, Central and Northern Virginia Upgrading the Power Grid

19 Dominions Response: Conservation Dominions Response: Conservation Conservation a key to meeting Virginias growing energy needs while protecting the environment. Conservation Plan to be filed with SCC, after July 1. Proposed smart meters; Expected to reduce demand by 1 million Mwh by 2011; Projected to save customers $1 billion over 15 years. Important part of an integrated strategy.

20 13 programs Homeowner incentives to: –Tune up heat pumps –Install energy-efficient heat pumps –Turn in old refrigerators –Cycle off air conditioners during peak periods If approved by SCC effective in A Portfolio of Programs

21 Heres Where it Goes

22 Conduct an energy audit online at Find Out What You Need

23 Visit us at keyword: conservation Visit our blog at 23 There Are Lots of Great Ideas…

24 Dominions EnergyShare Helping families in need pay their energy bills, regardless of the type of fuel Has provided over $31 million in help since its founding in 1982 Offered through local social services agencies Budget billing Predictable, stable energy bills year-round If You Need Help With Your Bill

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