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