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

1. Restructuring RoundtableJune 10, 2011Dan WeekleyVice President, Government AffairsDominion

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) Dominion is the largest supplier and provides the most balanced generation portfolio in New England Brayton Point 1,154 Mw Coal (3 Units) 435 Mw Oil/gas(1 Unit) Manchester Street 465 Mw Gas CC (3 Units) Millstone 2,123 Mw Nuclear (2 Units)

4. 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 Reductions1998-2008 Actual Emissions2010, 2015 Projected Emissions Dominion Ownership

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

7. Environmental Investments Cooling Towers ($600M) Ash Reduction Process ($50M) • 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 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

8. Power Prices in New England Over Past 5 YearsQuarterly Averages

9. Capacity Prices Trending Downward in New England October 2009 December 2008 August 2010 February 2008 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 MW FCA 2 MW FCA 3 MW FCA 4

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

12. 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. (Including Hydro) (Including Duel Fuel: Oil or Gas) (Coal & Nuclear)

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?