© 2008 Dominion Building New Nuclear Plants: Are Utilities Ready? Wisconsin Public Utility Institute Advances in Nuclear March 26, 2008 Eugene S. Grecheck Vice President Nuclear Development

© 2008 Dominion What you heard until recently No new nuclear plant orders since 1978 Licensing and construction takes too long Last new plant began operation in 1996 Construction and operations and maintenance costs are too high Licensing is unpredictable Any company announcing a new nuclear project would be punished by Wall Street

© 2008 Dominion Early Site Permit Design Certification Combined License Issued ConstructionITAACOperation Apply for Construction Permit Construction Apply for Operating License Operating License Issued Operations OLD LICENSING PROCESS NEW LICENSING PROCESS NRC Licensing Process Changes in 10CFR52 License Issued BEFORE Large Capital Investment License Issued AFTER Large Capital Investment Construction Permit Issue d

© 2008 Dominion The US economy is highly correlated with energy and electricity supply 0% 50% 100% 150% 200% Source: EIA and BEA Electricity Energy GDP Actual Projected

© 2008 Dominion Data centers rapidly driving up regional demand. Each facility adds MW of additional demand. Demand for electricity may grow as much as 12 percent Planned data centers Planned Data Centers in Loudoun County: Base Load Demand

© 2008 Dominion Virginia Electricity Consumption Continues to Increase

© 2008 Dominion Peak Demand (Megawatts) 18,000 20,000 16,000 22,000 Current generating capacity Projected Dominion peak demand—PJM Forecast Additional Deficit of 4,000 MW by 2017 Virginia’s Long-Term Energy Gap

© 2008 Dominion How we met past demand: not the path to the future

© 2008 Dominion Natural Gas demand is leading to increasing imports HistoryProjections Consumption Production ä Net Imports ä 23% PipelineLiquefied Natural Gas ä 2001 ä 2025 ä Source: 2004 Annual Energy Outlook

© 2008 Dominion Equivalent to 18 new 1,000-megawatt power plants Source: EIA – Updated 3/05 Million MWh Additional nuclear output has played a big role…even without new plants

© 2008 Dominion The Energy Challenge Going Forward Rapidly increasing demand worldwide– energy is now a global market Dramatic upward pressure on all fuel prices Increasing focus on environmental considerations Carbon dioxide impact on climate Particulates and oxides Limited recent investment in delivery systems and infrastructure Workforce demographics Skyrocketing commodity prices Widespread misunderstanding of the issues

© 2008 Dominion 50,000 MWe of New Nuclear Needed to Maintain Existing Energy Supply Diversity 30% non- emitting 30% non- emitting Oil, Gas & Coal Hydro & Renewables New Nuclear Capability (50,000 MWe) Enhanced Nuclear Capability (10,000 MWe) Existing Nuclear Capability Billion kWh

© 2008 Dominion What has Dominion been doing? Comprehensive efforts over a diverse portfolio…clean coal, natural gas, nuclear, renewables, conservation, transmission An industry leadership position in understanding the path to new nuclear A diverse approach to meeting an anticipated 4,000 MW gap in electric supply by 2017 Visit our web site: www. PoweringVirginia.com

© 2008 Dominion

© 2008 Dominion Dominion’s ESP application: Maintaining the nuclear option option Applied to NRC September 2003 Staff safety evaluation report issued Mid 2006 Final Environmental Impact Statement issued in December 2006 Public hearing April 2007 ESP issued November 2007 North Anna ESP site

© 2008 Dominion COL Application: The Next Stephe Next Step General Electric ESBWR Single unit, 1500 MWe Next generation, simpler, more passive design meets safety goals 100 times more stringent than current Application to NRC submitted November 2007

© 2008 Dominion Proposed North Anna 3 Project Milestones Project KickoffApril 2005 GE Submits ESBWR ApplicationAugust 2005 Begin COL application preparationSeptember 2005 Long lead item purchase orderApril 2007 Submit COL application/November 2007 Begin detailed engineering NRC Issues COL2011 Safety Related Construction Start2011* Unit Operation2016 * Pending contract agreements

© 2008 Dominion

The Evolving Utility View of New Nuclear Pre 2001—Skepticism —Tentative exploration —Focus on licensing hurdles, first ESP applications, formation of NuStart, DOE NP2010 solicitations 2005—EPACT incentives —Many COLA announcements, first applications submitted 2008—Facing the realities of costs and financing

© 2008 Dominion Comparison of US vs. global power companies US Global (excluding US) Global players dwarf their US counterparts Note: Stock prices as of 3/14/2008

© 2008 Dominion Note: Market Capitalization as of beginning of Relative ability to fund major capital projects

© 2008 Dominion Going forward…. Real baseload demand is increasing Historic means of meeting demand will not work Nuclear is the only large scale non emitting base load source available Licensing processes are moving forward Financing will require new thinking

© 2008 Dominion North Anna 3 reactor vessel forgings are in production

© 2008 Dominion