1. Restructuring Roundtable June 10, 2011 Dan Weekley Vice President, Government Affairs Dominion

2. About Dominion: One of America’s Leading Energy Companies
~27,615 MW of electric generation
6,200 miles of electric transmission
11,000 miles of natural gas transmission, gathering and storage pipeline
947 billion cubic feet of natural gas storage operated
Cove Point LNG Facility
2.4 million electric customers in VA and NC
1.3 million natural gas customers in OH & WV
2.0 million non-regulated retail customers in 12 states

3. Dominion New England Generation Assets: 4,920 MW
Salem Harbor
312 Mw Coal (3 Units)
431 Mw Oil (1 Unit)
Manchester Street
465 Mw Gas CC (3 Units)
Brayton Point
1,154 Mw Coal (3 Units)
435 Mw Oil/gas (1 Unit)
Millstone
2,123 Mw Nuclear (2 Units)
Dominion is the largest supplier and provides the most balanced generation portfolio in New England

4. Balanced, Diverse Fuel Mix 2010 Electric Production by Fuel*
Dominion:
Balanced, Diverse Fuel Mix
2010 Electric Production by Fuel*
*Total production by regulated and merchant units.
Excludes non-utility generation (NUG) under contract.

5. Dominion New England Emissions Reductions 1998-2008 Actual Emissions 2010, 2015 Projected Emissions
Dominion Ownership

6. Likely Timeline for Environmental Regulatory Requirements for the Utility Industry

7. Environmental Investments
Multi-year nearly $4 billion investment program to improve environmental performance of our fossil stations
Dominion New England investments in environmental improvements ($1.2 billion)
Scrubbers
SCRs
Mercury control equipment
Brayton Point closed-cycle
cooling water
Approximately $600 million
already spent to install cooling
towers
Additional $354 million
included in its planned
capital expenditures through 2012
Cooling Towers
($600M)
Unit 3 SCR
($107M)
Unit 1 SCR ($69M)
Unit 1 Scrubber
(DFGD)($76M)
Unit 2 Scrubber
(DFGD)($80M)
Unit 3 Scrubber (FGD)
($270M)
Under Construction
Ash Reduction Process
($50M)

8. Power Prices in New England Over Past 5 Years Quarterly Averages

9. Capacity Prices Trending Downward in New England
February 2008
December 2008
October 2009
August 2010
Prorated Market Clearing Prices – Forward Capacity Auctions

10. Demand Response Resources Growing
Cleared DR resources have grown 31 percent since February 2008
Forward Capacity Auctions MW
FCA 1
FCA 2 MW
FCA 3 MW
FCA 4 MW

11. Source: NERC 2011 Summer Reliability Assessment
Demand Response
(MW)
Source: NERC 2011 Summer Reliability Assessment

12. Source: NERC 2011 Summer Reliability Assessment
Reserve Margins
Source: NERC 2011 Summer Reliability Assessment

13. New England – Dependent on Gas, Lacking in Baseload Generation
New England’s baseload (coal and nuclear) capacity third lowest among eight regions.
(Coal & Nuclear)
(Including Duel Fuel:
Oil or Gas)
(Including Hydro)

14. Case Study: Salem Harbor
Salem Harbor Power Station:
Located in Salem, MA and began commercial operation in 1951, Dominion purchased the station in February 2005
745 MW: enough electricity to power about 745,000 homes
Primary fuels are coal and oil
By end of 2011, will cease operation for
two of the four units, and planning to retire
remaining 2 units on June 1, 2014
Causes for closure: Uneconomical to operate
Falling margins for coal stations selling electricity in New England
Pending environmental regulations –would have had to
spend millions of dollars on new controls at the power station
to comply with new US EPA regulations
No assurance of full cost recovery

15. Constant State Changes in the Market
Constant changes demonstrate instability in the region:
Massachusetts CO2 tax (first in country)
Regional Greenhouse Gas Initiative (RGGI)
Connecticut has substantially changed policy direction at least 3-times since 01’
Vermont – voting to close Vermont Yankee
“Renewables” but only OURS
Barriers to entry, market or State policies?