1. Dominion Overview

2. 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

3. 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

4. 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

5. 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)

6. 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

7. 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

8. 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

9. Possible Timeline for Environmental Regulatory Requirements for the Utility Industry

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

11. 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