11

Dominion:New Directions in

Energy

22

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 TodayDominion Today

33

About Dominion:Diverse Generation MixAbout Dominion:Diverse Generation Mix

2008 Electric Capacity by Fuel

12%

26%18%

31%

13%

Coal

Nuclear

Natural Gas

Oil

Hydro/Other

2008 Electric Production by Fuel

1%

8%

41%

46%

4%

Dominion Virginia Power

44

100 Largest U.S. Power Producers(Pounds CO2 per MWh Output)

Source: Natural Resources Defense Council, 2008 Study

0

500

1000

1500

2000

2500

Dominion

About Dominion:Low Carbon Intensity About Dominion:Low Carbon Intensity

55 5

Demand is up Nationwide…Demand is up Nationwide…

2,000

2,800

3,600

4,200

0

1,500

3,000

4,500

1980 1990 2000 2010

Te

ra-w

att

-ho

urs

Source: Energy Information Administration, U.S. DOE

66 6

Million mWh

…And Here in Virginia…And Here in Virginia

77 7

20001970 1980 1990 2010

Ene

rgy

Use

Our Must-Haves GrowOur Must-Haves Grow

88 8

With New Uses on the HorizonWith New Uses on the Horizon

99

Peak Demand (Megawatts)

18,000

20,000

16,000

22,000

Current generating capacityProjected Dominion peak demand—PJM Forecast

2009 2019

AdditionalDeficit of

4,600 MWby 2019

The Upcoming Energy GapThe Upcoming Energy Gap

Virginia’s Mounting Electric Energy Gap

1010

• Intensified conservation programs

• Environmentally friendly generation, including renewable, clean coal, natural gas, possible nuclear

• Transmission and delivery system improvements, including “smart meters”

Dominion’s Integrated StrategyDominion’s Integrated Strategy

1111

• 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 Virginia’s power generation “gap”- Upgrade transmission grid- “Smart meters” and energy conservation

Virginia Rate FilingsVirginia Rate Filings

1212

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

1313

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 2009U.S. Average: Edison Electric Institute, Winter Rates, Residential, 1,000kWh, MonthlyDominion Virginia Power: Edison Electric Institute, Annualized Rate, Residential, 1,000kWh, Monthly

6.8%(requested)

52%

48%

25%

0% 10% 20% 30% 40% 50% 60%

Dominion VirginiaPower Residential

Rates

Consumer PriceIndex (Inflation)

U.S. AverageResidential Rates

1414

$108.73$116.30 $119.89

$0

$40

$80

$120

Dominion (1/1/2009) *Dominion (requested) U.S. Average (1/1/09)

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 AverageRemaining Below the National Average

1515

• 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

Dominion’s Response:Environmentally Friendly GenerationDominion’s Response:Environmentally Friendly Generation

1616

• 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- 1.4 million tons of CO2 to be offset annually- All CO2 to be captured and stored when

commercially feasible- Sharp reductions in net mercury, sulfur

dioxide and nitrogen oxides

Virginia City Hybrid Energy CenterVirginia 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.

1717

• NedPower in Mount Storm, WV: - 264 megawatts (partnered with Shell)

• Fowler Ridge in Benton County, IN: - 400 megawatts online (partnered with BP) - Could be expanded to total of 750 MW

• Prairie Fork in Christian & Montgomery Counties, IL:

- 300 megawatts

• Virginia wind projects in Tazewell and Wise Counties

• Other projects in development in VA (not announced)

Dominion’s Operating and ProposedWind Energy ProjectsDominion’s Operating and ProposedWind Energy Projects

1818

Transmission: Electricity's Highway SystemTransmission: Electricity's Highway System

Power is useless unless you can get it where it’s 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 GridUpgrading the Power Grid

1919

Dominion’s Response:ConservationDominion’s Response:Conservation

• Conservation a key to meeting Virginia’s 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.

2020

• 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 2010

20

A Portfolio of ProgramsA Portfolio of Programs

2121 21

Here’s Where it GoesHere’s Where it Goes

2222

Conduct an energy audit

online at www.dom.com

Find Out What You NeedFind Out What You Need

2323

Visit us at www.dom.com,

keyword: conservation

Visit our blog at

http://e-conserve.blogspot.com

23

There Are Lots of Great Ideas…There Are Lots of Great Ideas…

2424 24

Dominion’s 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 BillIf You Need Help With Your Bill

2525